Information on Long-Term Insurance for Seniors in North Carolina

Long-term care coverage in North Carolina provides the financial resources to pay for long-term custodial and nursing care services for the aged and disabled. It pays for services not covered by traditional medical insurance. Disability insurance replaces part of a disabled worker's income, but it does not provide for her care. Medicare does not typically cover chronic long-term custodial care. The cost of long-term care can run tens of thousands of dollars annually and can be financially devastating for a family relying on a modest retirement income.

Average Cost of Care

• The average cost of full-time custodial nursing home care in North Carolina varies somewhat by region. The state average is $197 per day. Urban areas, such as the Raleigh-Durham area, cost slightly more. The cost of adult day care runs approximately $45 per day, and the cost of a home health aide runs approximately $18 per hour.

The Long-Term Care Insurance Market

• North Carolina has a vibrant and competitive long-term care insurance market. But in recent years, some large carriers have elected to pull out of the market. Other carriers have hit policyholders with large rate increases on in-force policies, as lapse rates have been lower than most companies predicted, while expenses have been higher.

Long-Term Care Partnership Program

• North Carolina implemented a long-term care partnership program, which became effective on January 1, 2011. Under the plan, those who purchase a qualified long-term care insurance policy may protect assets equal to the benefits under the policy, if they should need to apply for Medicaid. Normally, Medicaid requires applicants to impoverish themselves prior to receiving benefits. But by purchasing at least some long-term care benefits, North Carolina residents can protect treasured family assets from liquidation to pay nursing home bills.

North Carolina Medicaid

• For those who cannot qualify for, or who cannot afford private long-term care insurance may want to consider Medicaid. Medicaid is federally subsidized, but it is administered at the state level. The North Carolina Division of Medical Assistance provides long-term care services to North Carolina residents who have impoverished themselves, whose income is below a certain level, or who have exhausted their private long-term care insurance benefits under the North Carolina Long Term Care Partnership Program. You cannot transfer assets out of your name for less than market value for up to five years prior to applying for Medicaid.