If we had a magic wand, we’d wave it over the beautiful state of California and endow each resident with good health and long term care insurance in California.  California residents would stop worrying and start sleeping better at night, knowing their future care was guaranteed and they would never have to impoverish themselves or be a burden on their families. 

Our magic wand is still in development.  So, in the meantime, if you want to rest, assured that your bases are covered for the future, you’ll need to take action.

Your first step is to read on.

The 5 Ways to Pay for Long Term Care in California

There are 5 ways to pay for long term care in California and we’ll provide highlights of each:

1. Private pay
2. Long Term Care Insurance
3. Life insurance or annuities with long-term care or chronic illness riders
4. Medi-Cal
5. Veterans’ Benefits

(Medicare isn’t listed because it’s health insurance, not long term care insurance.  You can’t count on it to pay for long term care.)

Private Pay for Long Term Care in California

If you have gobs of money, you could self-insure and private pay for your long term care; however,  

• In 2020, California nursing home costs average about $300 for a shared room and $350 for a private room.
• If you’re in an urban area such as San Diego, Los Angeles, or San Francisco, rates are much higher, up to $497 per day.
• Let’s figure that out.  Average nursing home stays are about 2.5 years to 3 years, so we’ll use the 3-year cost factor.  Here goes:  Even if we took the lowest rate of $300 × 2.5 years × 365 days, that’s $273,750.
• If your spouse or partner needs the same care, we’d have to double that fee to $547,500.
• And, surprisingly, this doesn’t cover everything such as an attendant, medical co-payments, clothes, haircuts, toiletry supplies, and the hairdresser.

Is private paying for long term care in California a good option for you?

Long Term Care Insurance in California

Long term care insurance in California pays for care at home or in an assisted living facility or nursing home.  Policies are customized so that you can:

• Include a deductible to reduce premiums
• Purchase policies of different lengths such as a 3-year policy or a 5-year policy.
• Get your insurance premiums back if you never use the policy.
• Buy a life insurance rider to leave an inheritance for loved ones or pay last bills.
• Include an inflation rider so that your coverage increases as California long-term care fees increase.
• Consider a myriad of other features that are a good fit for you.
• Fees for Long term care insurance in California vary depending on your age, health, and the features you choose.  It’s essential that you consult with a highly qualified LTC insurance professional who knows his or her stuff!

Wouldn’t it make sense to find out more about long term care insurance in California?

Life insurance or annuities:

• Life insurance or annuities with long-term care or chronic illness riders have become popular.
• These pay a combination of a death benefit, a long-term care benefit, or a refund.
• Qualifications to receive benefits are similar to traditional long-term care insurance policies.
• The rates are normally guaranteed.
• The cost is greater than the cost of traditional long-term care insurance because you get solutions to two problems instead of just one.

Medi-Cal instead of Long Term Care Insurance in California

Medi-Cal is an important and valuable program.  It pays for health care and nursing home care for those who are impoverished.  To qualify for the program, you must have next to no assets and little income. 

• This means you must spend down nearly all of your assets to qualify.
• In addition, all of your income, such as your social security check or pension, will go to the nursing home, not to you.

If you’re truly impoverished, living below the poverty line or close to it, Medi-Cal is a fantastic safety net and you should further explore its benefits.  You are why Medi-Cal exists. 

However, if your income and assets are not at the poverty level, it likely makes sense to explore other ways to pay for long-term care.

Veterans’ Benefits to Pay for Long Term Care in California

In great appreciation of service to our country, the government does provide limited veteran’s benefits to pay for long term care in California.

• These benefits are limited to veterans and their spouses, who have few assets and very low income.
• The veteran must have served a minimum of 90 days, with at least one day during wartime.
• This program is called Aid and Attendance.

The bottom line is that there are 5 ways to pay for long term care in California. Be sure to analyze your California long term care payment choices, before you need them.  If you would like our help, contact us, we’ll be happy to assist in any way we can.  We look forward to hearing from you.