Colorado Long Term Care Insurance & Cost Information
As long term care costs in Colorado continue to rise residents have three options:
- Ignore the figures and pretend that they will never require care, anyway.
- Start spending down their assets to qualify for Medicaid.
- Plan their future needs and spare the people that they love from misery.
Colorado residents who will need skilled nursing care can expect to pay around $75,190 each year for a semi-private room in a nursing home or $84,315 for a private one. The cost of services provided by home health aides has significantly increased in the past 5 years. Hourly rates of a licensed home health aide in Metro areas in Colorado range from $16 in Pueblo to $22 in Denver. Please refer to table below for the 2012 median cost of care data provided by Genworth.
|Region||Homemaker Services Hourly Rate
|Home Health Aide Hourly Rate
|Assisted Living Facility Monthly Rate
|Nursing Home Daily Rate
|Nursing Home Daily Rate
|Rest of State||$16||$17||$3,263||$197||$215|
One way to pay for these services is through Long Term Care insurance. This insurance product caters to all types or levels of long term care, thus allowing buyers to personalize their future health care in a manner that would suit them.
Long term care insurance is important not only to senior citizens and disabled people in Colorado but to the caregivers in their families, as well. As a matter of fact, buying a long term care insurance policy makes more sense than relying on Medicaid, a health insurance program funded by the federal and state government and primarily designed to provide health care coverage to poor individuals and families. Many people resort to Medicaid thinking they can simply dictate their long term care needs and the program will comply. To qualify, residents must first meet the financial standards of the program such as having countable assets that do not exceed $2,000.
The Colorado Department of Health Care Policy and Financing is the government agency that administrates the Medicaid program in Colorado.
Colorado Long Term Care Insurance Partnership Program
Colorado Long Term Care Partnership is a program between the State's Medicaid and private insurers to be able to offer and market Long Term Care policies to residents of Colorado. The Partnership program was established in January 1, 2008, in accordance with the 2005 Deficit Reduction Act. The program is collaboration with other government agencies such as the Colorado Division of Insurance and the Colorado Department of Human Services. The Colorado Long Term Care Partnership allows Colorado residents to protect their assets from spend-down requirements should they turn to Medicaid assistance to finance their continued care when their private insurance benefits run out. This is called Medicaid Asset Protection.
Long Term Care Partnership Policy Features
Private insurance companies submit Long Term Care insurance products to be reviewed and certified for the Partnership program. Partnership policies have to satisfy certain requirements.
- Medicaid Asset Protection and Estate Recovery - For every dollar that the policyholder receives in long term care benefits, a dollar of his personal assets shall be exempted from Medicaid’s spend down rule. Therefore, holders of Partnership qualified policies may apply to Medicaid after exhausting their insurance benefits, even if they are not at impoverished level. However, exhaustion of policy benefits is not required in the State of Colorado. Any resident may apply for Medicaid at any given time.
- Inflation protection - Colorado law requires purchase of inflation protection in order for a policy to qualify for the Partnership program. Policies issued to policyholders below age 61 should have a minimum of 5% annual compounded interest (or consumer price index compounded annually). Policyholders aged 61 to 75, on the other hand, should have any of the following:
- 3% compounded annually
- 5% simple interest
- Consumer Price Index
- 5% compounded 2X maximum
- Inflation protection is optional to policyholders over 75 years of age.
- Partnership policies are tax-qualified - A tax-qualified policy means your benefits will not be taxed and you may be eligible for tax deductions when you file your income tax returns. Colorado provides a state income tax credit of 25% of premiums paid by residents with taxable income less than $50,000, or up to a maximum of $150 per policy. (2007 data)
- All participating private insurance companies are required to provide policyholders a Notice Regarding Your Long-Term care Partnership Status. This is in accordance with the Colorado Division of Insurance Bulletin B-4.28 issued on December 21, 2007. The Notice informs the policyholder of the features of the purchased Partnership policy, and the actions that could result to a loss of Partnership policy status. These instances include changes a policyholder will make to their existing policies, and changes in state or federal laws.
- Colorado participates in the Partnership Program’s reciprocity agreement so you have the freedom to relocate to another state and still receive the same insurance benefits. You have to check, though, if the state that you are relocating to also participates in the reciprocity agreement to avoid problems with benefit claims and Medicaid eligibility.
Compare the Top Providers
Colorado residents can compare the top providers of long term care insurance in the state to get the best price.
You may exchange your existing Long Term Care policy for a Partnership policy provided that the private policy was issued after January 1, 2008. It is also important to ask your insurer if your policy meet the requirements for a Partnership policy status. Insurance companies may offer additional inflation protection provisions, subject to approval of the Colorado Division of Insurance and Department of Health Care Policy and Financing. This will take effect on January 1, 2010.
Types of Partnership Policies in Colorado
Policies may differ in coverage as there is a variety of Long Term Care insurance policies available in the insurance market. Partnership policies and non-partnership policies are generally the same and priced almost the same. However, insurance policies must have the abovementioned features in order to be considered a Partnership policy.
Obtaining a Partnership Policy
Partnership policies are only offered by licensed insurance agents who underwent the required Partnership training in Colorado. Below is a list of insurance companies that offer certified policies with partnership coverage:
- American General Life Insurance Company
- Bankers Life & Casualty Co.
- Equitable Life & Casualty Ins Co
- Genworth Life Insurance Co. of NY
- John Hancock Life Insurance Company
- LifeSecure Insurance Company
- Massachusetts Mutual Life Ins Co
- MedAmerica Insurance Company
- Metropolitan Life Insurance Co
- Minnesota Life Insurance Company
- Mutual of Omaha Ins Company
- Penn Treaty Network America Insurance Company
- Physicians Mutual Ins Co
- State Farm Mutual Automobile Ins Co
- Northwestern Long Term Care Insurance Company
- Transamerica Life Insurance Company
- United Healthcare Ins Co
- United of Omaha Life Ins Co
- New York Life Insurance Company
Fill out this short form to get your free quotes from all providers
We don't just offer one solution. We shop all of the major carriers in Colorado to offer you the best price. With our 35+ years of Long Term Care insurance experience, we'll save you time and money on your Long Term Care Insurance quotes. We only use your personal information to formulate your quotes and discounts. We will also email you a complimentary copy of the 2011 NAIC Shopper's Guide to Long Term Care Insurance so you can learn even more about LTCi.
Colorado Long Term Care References
- Colorado Long-Term Care Partnership. 2009. Participating Insurers.
- Colorado Long-Term Care Partnership. 2009. LTC Frequently Asked Questions.
- Colorado Division of Insurance Bulletin B-4.28. 2007.
- State-Specific Data From The Genworth 2010 Cost of Care Survey.
- Long-Term Care Planning: Colorado Options. Senior Health Insurance Assistance Program. Colorado Division of Insurance. 2007.