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New Jersey Long Term Care Insurance Information

There are 8,958,013 residents in New Jersey, as revealed by a census done last July 2015. Individuals who belong in the age group of 65 years and above make up 15% of the total population. Female residents, similar to most states in the country, slightly outnumber male residents at a figure of 51.2%. Additionally, it is expected that people 85 years and above in the state will increase by 70% within the years of 2007 to 2030.

According to the America’s Health Rankings, there is a significant disparity when it comes to a person’s health status by education level in New Jersey. Also, the state has a low per capita on public health funds. Although 26.9% of adults in the state are recorded as obese (which may result to both health and mental disorders), New Jersey is still known for low incidences of people with infectious diseases.

New Jersey is also known to provide excellent nursing home care services – the state was ranked 9th nationally by the Medicare 5 Star Quality rating system. The state has 365 certified nursing homes that contain 52,519 beds to cater to senior residents in the area.

Average Cost of Long Term Care Services in New Jersey

Costs (2016) for LTC services in New Jersey are as follows:

Home Health Aide (Daily Rate): $138

Nursing Home Care (Daily Rate, Semi-Private Room): $325

Nursing Home Care (Daily Rate, Private Room): $367

Assisted Living Facility (Monthly Rate, 1 Bedroom-Single Occupancy): $4,950

New Jersey Long Term Care Partnership Program

New Jersey has an approved state LTC partnership program. The program was approved by the U.S. Department of Health and Human Services last July 1, 2008. The state will honor partnership from other DRA (Deficit Reduction Act) partnership states.

What is a Long Term Care Partnership Program?

The partnership program is designed to encourage people to purchase long-term care insurance by providing a plan that will allow Medicaid to disregard some or all assets for Medicaid eligibility and estate recovery purposes. Through partnership plans, people will receive asset protection whenever policy benefits are exhausted and will need continued benefits through Medicaid.

Partnership qualified insurance policies allow their holders a much easier time of applying for Medicaid when their current policy benefits have run out. Instead of needing to reach below the asset threshold set by the federal health care program, policy owners can protect an amount of assets equal to their total benefits – allowing them to continue receiving care without the risk of losing their assets to Medicaid estate recovery procedures.

For insurance policies to be certified as Partnership policies in New Jersey, the Deficit Reduction Act of 2005 has set a number of requirements that must be met:

  • Issue Date: The policy must be issued after the effective date of the Partnership Program in the state (July 1, 2008).
  • State of Residence: The policy holder must be a resident in New Jersey at the time the coverage became effective.
  • Inflation Protection: All Partnership policies must include inflation protection. Policies issued to individuals under age 61 must provide compound annual inflation protection. Policies sold to individuals who have attained age 61 but not yet attained age 76 must include some level of inflation protection. Inflation protection may be offered, but is not required to individuals who have attained age 76.
  • Qualified under Federal Tax Law: All Partnership policies must adhere to the definition of a Long Term Care Insurance policy in section 7702B (b) of the Internal Revenue Code of 1986.
  • Consumer Protection: The policy must adhere to the requirements defined in section 1917(b)(1)(C)(iii)(III) of the Social Security Act (42 U.S.C. section 1396p(b)(1)(C)(iii)(III).

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