Tag Archives: Long Term Care Insurance

Just How Expensive is Long Term Care in Texas?

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The cost of Long Term Care in the United States has steadily risen in the past decade. Nursing homes, assisted living facilities, and in-home care services are now more expensive than ever. Fortunately for Texans, Long Term Care costs in the Lone Star State are still significantly lower than the national averages.

The Texas Advantage

According to the 2013 Cost of Care Survey released by Genworth Financial, Texas has some of the lowest Long Term Care costs in the nation. While the national median annual cost for a private room in a nursing home is $83,950, the median cost in Texas for the same service is only $61,320. The difference of over $22,000 is a highly significant chunk  of money that could be put towards other expenses or saved for future use. Compare the cost in Texas to states like California where the median cost is just under $98,000 annually or Alaska where the median cost is a shocking $255,891, and it becomes clear that the difference in cost truly matters.

Furthermore, the national median cost for a private room in a nursing home was up 7.4% from $77,745 in 2011, but the Texas median only increased 1.8% from the 2011 median of $60,225. That indicates that in addition to lower costs overall, the cost growth rate is also lower in Texas compared to the nation as a whole.

The national and Texas medians were more similar when it came to assisted living facilities and in-home care services, but the numbers differed considerably again in regard to adult day cares. Adult day cares are non-residential facilities where caregivers can take a long term care patient for the day. These facilities incorporate health, social interaction, help with daily tasks, and therapeutic services. The national median cost for an adult day care center was $16,900 annually. In Texas, the median was almost exactly half that at $8,580 yearly.

Preparing for Long Term Care

Just because long term care services in Texas are cheaper than the rest of the country certainly doesn’t mean you shouldn’t plan to pay for them. Planning for your future long term care health needs is a vital part of retirement planning. Because Texas has one of the lowest Medicaid reimbursement rates, the state health care system is struggling to stay afloat. More than 6.3 million Texans are uninsured, meaning a lot of people will soon be turning to Medicaid for their long term health needs. This has the potential to lead to substandard quality of care within the government subsidized health programs.

The looming Medicaid crisis in Texas only encourages Long Term Care Insurance more. With LTCI, you don’t have to run the risk of compromising care for cost. An LTCI policy will safeguard your assets from depletion, while ensuring you receive the quality care you deserve. The state and private insurers worked together to create a Long Term Care Insurance Partnership program for the state, offering a variety of plans to Texas residents.

Interested in Long Term Care Insurance in Texas? Read more about Texas LTCI Partnership policies here.

Get the latest LTCI quotes from the top cities in Texas here.

Looking at Long Term Care Insurance? Don’t Wait to Buy

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Shopping for insurance isn’t something that should be rushed. Buying an insurance policy isn’t like buying a new shirt; it’s a process that requires a lot of serious thought and consideration.

Take Your Time, But Don’t Procrastinate

Because buying insurance is a matter that shouldn’t be taken lightly, we understand the importance of taking your time to think through all of your options before you decide. On the other hand, though, we have also found that there is a big difference between thinking through your options and putting off the decision. Many people tend to do the latter rather than follow through and buy a policy, which often ends up hurting them in the end.

Long Term Care Insurance can help you pay for the cost of long term care so you don’t have to cover the costs with the savings you have worked so hard for throughout your entire life. It provides you with a separate pool of money from the cost of care is deducted, should you ever file a claim. Qualifying for a policy requires more than just an application, though; it also requires good health and oftentimes, a young age. That’s why putting off the decision to buy a policy can be so risky.

Shelving the Idea

We frequently speak with clients who are shopping around for policies. After speaking with them, we send them a binder with a personalized quote comparison for them to look over. The point of the binder is to provide clients with all the information they need and allow them to review the various choices to decide which is best for them. Following a thorough review of the various policies is often the best time to buy. The information is fresh in your mind. All too often, though, we hear the age-old addage, “I’ll think about it.” Sometimes, we never hear from those clients again. Sometimes, we do.

When we do hear back from those clients, it is often one of two things. Either they just had an experience with a friend or family member that made them reconsider buying a policy and they are now ready to purchase, or they themselves have experienced a serious health problem that requires long term care and they are desperate to know if it is still possible to buy a policy. The answer? Probably not.

If you wait until you have fallen, suffered a stroke or heart attack, become fragile, or been diagnosed with a disease, the chances of qualifying for a Long Term Care Insurance policy are slim. Unfortunately, some people shelve the idea of buying a policy until one of those things happens and by then, it is too late. We actually spoke with a client recently who this happened to. Sadly, she didn’t wait long at all – just one week went by between when we sent her the binder and when she broke her hip. By the time she fell, there was nothing she could do. Her chances of qualifying for a policy were out the window because she was in her late 70s.

Buy at the Right Time

It may seem like the sensible thing to do: wait a little while to make a decision, and it might be. It also might be a mistake, though. Understanding your personal risk is vital to understanding when you should buy a policy. For most people, buying in their 50s is the best time because they are still in relatively good health and their age helps them attain lower premiums.

Regardless of how old you are, though, once you have decided that a Long Term Care Insurance policy is something for you, don’t wait to make the purchase. The longer you wait, the greater your chances are of missing out on your window of opportunity. To request a free quote, fill out this form. Thanks so much for reading our post today.

Plan Ahead for Long Term Care

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Have you considered what you will do if you ever suffer a bad fall or are diagnosed with dementia? If you need long term care, how will you pay for it?

Many people don’t think about this type of scenario early enough and are not financially prepared to pay the costs out of pocket when the time comes. The risk that you will need long term care is fairly high, and the risk only increases as you age.

Addressing the Cost

Long term care isn’t just reserved for severe injuries of illnesses, either. Many elderly people simply need help with getting around, preparing meals, and other daily tasks. The cost of an in-home caregiver is quite expensive, and though there is insurance to cover the cost of this type of care, few people have it.

Long term care insurance helps cover the  cost of long term care so you don’t end up paying the whole bill. Studies have shown that many people are concerned about the increasing cost of care at home, in assisted living facilities, and at nursing homes, but many also mistakenly believe the government pays for this type of care. That is not the case.

Medicare doesn’t pay for long term care unless you have suffered a serious injury and been hospitalized as an inpatient for at least 3 days. Even then, they only pay for a short period of care. Medicaid is the social insurance program for the poor and will only pay for long term care if you have already exhausted all of your financial assets. For those who do not want to give up all of their hard earned money simply to be cared for in old age, long term care insurance provides a way to bridge the gap.

Should You Buy?

Premiums depend on your age, health, the amount of coverage you choose, and if you are eligible for any discounts. Couples receive a discount of up to 40% of many policies, and applicants who are in good health often receive a discount, as well.

If you are above the age of 45, in good health, and have assets and a retirement nest egg to protect, you should consider buying long term care coverage. A study earlier this year found that the cost of care is increasing across all provider options. An annual cost of care report placed the cost of long term care in Texas at $61,320 for a private room in a nursing home for a year.

It’s important to apply for coverage before you are too old, because any medical issues will count against you in terms of qualifying. Just like a car insurance wouldn’t accept an application from someone who already had a wreck, long term care companies do not want to accept someone who is already sick and needs care. Looking into your options in your 50s will help you know what type of coverage you want, even if you don’t want to buy it right away.

Many adult children even consider buying this type of insurance for their aging parents. The issue of family caregiving in modern society continues to cause stress and tension as adults are often forced to leave their job or work and provide care in order to help their parent in their time of need. The AARP estimates that family caregivers provide a staggering $450 billion in unpaid care to loved ones every year. Long term care coverage can help shift the burden from families and let them focus on providing emotional support while professionals provide the necessary care.

Request more information about long term care insurance today and we will send you a personalized quote with a comparison of the top policies and providers in Texas.

The State of Genworth in the Long Term Care Insurance Industry

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Genworth Financial released some short videos featuring President and CEO Tom McInerney discussing some topics relevant to the Long Term Care Insurance industry and the changes Genworth is making in how they approach the business.

Future of Long Term Care Insurance

Speaking on the state
of Genworth, McInerney expressed his excitement about the next two to three years in the industry. He believes Genworth is well-positioned in all businesses, but especially in the Long Term Care Insurance market, and there is great potential for growth within that market.

Many Long Term Care Insurance providers experienced troubles in the last few years related to policies because they did not accurately predict many influencing factors like interest rates and lapse rates. Now that Genworth has figured out better ways to manage this type of insurance and intends to continue implementing strategies of better management, the future looks bright.

Genworth has long been recognized as a leader in the Long Term Care Insurance industry and they intend to expand their presence within the market and continue living up to expectations of the company as a high quality insurance provider. McInerney stressed the high claims payment rates that Genworth boasts and says the actual payment of claims is one of the things that matter most to clients, and in that area, Genworth has very high marks.

Planning Ahead

Long Term Care Insurance helps consumers protect their assets from the high cost of care by providing coverage for care received in the various long term care settings. Nursing homes, assisted living facilities, and home health aides are the most common types of long term care and as the aging population in the United States continues to grow rapidly, it’s important that individuals begin to plan for this type of care later in life.

To get more information on Long Term Care Insurance and how much a policy from a top rated company would cost you, find out the best providers in Texas and request a free quote comparison and we will be in touch with you shortly.

Protect Your Assets with a Texas Long Term Care Insurance Partnership Plan

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The last thing any one wants is to outspend their life savings; that’s why most of us spend so much time planning our retirement to the tee. When the need for long-term care strikes, many people aren’t prepared.

Why Plan for Long Term Care?

Planning for long term care is something that is often left out of retirement plans, either due to a lack of awareness or because the risk seems too far fetched. Unfortunately, it’s not that far fetched at all.

The risk that any American will need long term care is about 50%, and that gets bumped up to 70% once you reach age 65. Compare that to the risk of getting in a car accident, which is 1 in 240, according to a study done by the National Academy of Elder Law Attorneys, or the risk of experiencing a house fire, which is 1 in 1,200, the risk of long term care is extraordinarily high.

So given that the chances are so high, how do you protect yourself from this risk? Assuming you have assets that you would like to shield from the cost of health care during retirement, Long Term Care Insurance can provide a solution.

What is Long Term Care Insurance?

Long Term Care Insurance provides coverage for care received in a long term care setting. That can include a nursing home, assisted living facility, in-home care, and other settings like adult day care, as well. Care in these facilities can be extremely costly and can reach up to $100,000 a year.

Without insurance, you will either have to pay out of pocket, forgo facility care for care provided by a family member, or spend down your assets to qualify for Medicaid. None of those three options are ideal for anyone; they include financial and emotional stress, while Long Term Care Insurance often helps you avoid this type of problem.

Texas, like most states in the US, has a Long Term Care Insurance Partnership Program to help address the growing need for long term care. On top of your typical Long Term Care Insurance policy, with the Partnership Plan, you are also eligible for another benefit: a Medicaid spend down waiver. What this means is that if you exhaust all of your benefits from your policy and still need care, you won’t be forced to spend all of your assets to qualify for Medicaid.

How Does the Partnership Program Help?

These programs exist to encourage personal responsibility amongst state residents and reduce the burden on the state. If more people purchase Long Term Care Insurance Partnership Plans, that is a significantly lesser amount that the state will be forced to pay for people’s care. It also helps ensure you won’t be stuck between a rock and a hard place when it comes to paying for care, because you will have established a solid plan.

To find out more about the Texas Long Term Care Insurance Partnership Program, visit the website. If you would like to learn more about how Long Term Care Insurance can help, read our post here.

To get a long term care insurance quote comparison from the top companies in Texas, fill out this form and we will be in touch with you shortly to send you your free quote in the mail.

A Position of Leadership Within the Long Term Care Insurance Industry

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As the Long Term Care Insurance goes through some changes in the next few years, just as it has for the past few years, it’s important to have leaders within the industry to help forge the optimal path for consumers and providers.

Genworth Financial is currently taking up that role and looking to help any one interested in Long Term Care Insurance get educated and become aware of their options to help plan for the future.

Educating About the Risk

Long Term Care Insurance is a great tool for any one looking to enhance their retirement portfolio and protect their hard-earned assets from the potentially devastating and constantly increasing cost of long term care.

This type of insurance is often not considered until it’s too late, and as the need for long term care grows, it becomes apparent that a great deal more people could benefit from these policies if only they knew about them when they were younger and able to buy.

President and CEO Tom McInerney has been speaking out about Genworth’s new approach to Long Term Care Insurance and the carrier’s recently revealed 3 part strategy to help manage policies better in the future. He seems enthusiastic about the future of the company within this specific market and touts Genworth as a helpful resource for regulators, consumers, and public policymakers.

Years of Experience

Genworth has been in the Long Term Care Insurance industry since it began in the early 70s and as McInerney put it, no one in the industry knows Long Term Care Insurance as well as Genworth does. The provider has insured more than 1 million clients and paid out more than 190,000 claims, which has totaled nearly $10 billion in paid benefits.

The carrier publishes a Cost of Care Report annually, which details the growing cost of long term care and helps put into perspective just how expensive it can really be and how common the need for care is. McInerney says he wants Genworth to make Long Term Care Insurance a better and more relevant industry so more individuals can finance their long term care needs and protect their retirement nest egg.

Learn more about planning for long term care or request a free personalized quote comparison of the top providers today.

Long Term Care in Texas Costs How Much?

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Living a long life isn’t an uncommon desire; in fact, it’s quite common to hear someone say they want to live to 100 years old (or even older!). With a long life come certain changes, though. Long term care is one of them. If you are planning to live a long life, you must also be prepared for the high financial risk that long term care poses.

Genworth Financial recently published their 2014 Cost of Care Survey, which details just how expensive long term care is across the country, including Texas, and helps consumers plan for that cost.

Long Term Care in Texas

Long term care refers to services received in a variety of settings like a nursing home, assisted living facility, adult day care, and even at home from a home health aide. As life spans in the United States continue to rise and the cost of health care goes up with it, planning for the cost of long term care makes a great deal of sense when it comes to retirement planning.

Planning your retirement won’t do any good if you are suddenly injured or diagnosed with an illness that requires expensive care for an extended period of time. Fortunately, here in Texas, long term care is cheaper than the national average, but chances are the price tags will still shock you.

Cost Across Care Settings

The median annual cost of a home health aide in Texas is $41,184. Home health aides are nurses or health professionals that provide long term care in the comfort of your home. When asked, most people express that they would prefer this type of care over facility care. This number has seen a 1% growth rate over the past 5 years and is about $4,000 lower than the national median cost.

Adult day care facilities, which are public centers where adults can be dropped off for the day, typically during business hours, have a median annual cost of $8,970 in Texas. The cost of adult day care services in Texas has increased 3% in the past 5 years, but is still about half of the national median cost.

Assisted living facilities, another commonly preferred care setting, have seen a 5% growth rate in the past 5 years in Texas. Assisted living facilities provide long term care but in a more independent setting than a nursing home. They are often similar to apartment complexes, but have medical personnel on staff in case of any emergencies. The median annual cost of a single room in an assisted living facility in Texas is $42,270, which is less than $300 higher than the national median cost.

Nursing homes are usually the least preferred care setting but the most necessary for those with severe health problems. They are also the most expensive form of long term care. A private room in a nursing home in Texas will cost you an average of $65,700. This number is significantly lower than the national median cost of $87,600. Similarly, the cost of a semi-private room in Texas will cost an average of $50,735, compared to the national average of $77,380.

Less than Average

All in all, long term care in Texas is usually less expensive than the national average, but it varies from city to city and facility to facility. The important thing to remember about the high cost of long term care is most people can’t cover the cost on their own. Because health insurance and Medicare won’t cover it, either, it’s crucial to implement a plan to prepare for the potential cost. Long Term Care Insurance is a great way to do just that.

Long Term Care Insurance helps you plan for the cost of long term care without having to save up hundreds of thousands of dollars in assets. Instead, you transfer the financial risk to the insurance company and just pay regular premiums, which pale in comparison to the full cost of care. Buying Long Term Care Insurance shouldn’t be a last minute decision, though, so be sure to do your research and buy as early as possible to get the best rates.

View the full Cost of Care Survey here or request a free Long Term Care Insurance quote today.