Delaware Long-Term Care Insurance Information

Delaware offers a wide range of services and resources whether you need long-term care now or are planning ahead. The state participates in the Long-Term Care Partnership Program, allowing you to purchase a qualified Long-Term Care Insurance policy that provides dollar-for-dollar asset protection from future care costs.

Delaware offers a full range of long-term care services, including:

• Adult day care centers
• Assisted living facilities
• Continuing care retirement communities (CCRCs)
• Home health care and in-home support services
• Memory care for dementia and Alzheimer's disease
• Rehabilitation and skilled nursing facilities
• Respite care services
• Traditional nursing homes

Top insurance companies have several solutions available to help Delaware residents safeguard income and assets, protect their lifestyle, and preserve a legacy. Plus, qualified Long-Term Care Insurance policyholders gain access to quality care options—giving loved ones the freedom to be family rather than full-time caregivers.

Federal Long-Term Care Insurance Partnership Program

Delaware has participated in the federal-state Long-Term Care Partnership Program since November 2011. A qualified Delaware Partnership Long-Term Care Insurance policy provides dollar-for-dollar asset protection as authorized under the federal Deficit Reduction Act (DRA).

If you exhaust your policy benefits and still require long-term care, you may qualify for Medicaid under modified eligibility rules that include a special feature called an "asset disregard." For every dollar your qualified policy pays in benefits, you can retain a dollar of assets that would otherwise have to be spent down before Medicaid eligibility kicks in.

The policy must meet state guidelines and include the appropriate inflation protection as required by law.

Policy Example

If your Delaware Partnership Long-Term Care Insurance policy pays out $500,000 in benefits and you exhaust those benefits while still needing care, Delaware Medicaid will disregard that same $500,000 when calculating your spend-down requirements. This lets you keep far more of your savings than standard Medicaid rules would otherwise allow. The Partnership Program also protects those assets after death from Medicaid estate recovery.

Reciprocity

Most states have reciprocity with other states' long-term care partnership programs, including Delaware. If you move from or to Delaware, your partnership asset protection follows you.

Diamond State Health Plan – Plus (DSHP-Plus) is Delaware's Medicaid program for long-term care services and supports. The program will pay for long-term care if you meet financial and functional eligibility requirements. In 2026, the asset limit is $2,000 for a single applicant. For married couples where only one spouse is applying, the applicant spouse is limited to $2,000 in countable assets while the community spouse may retain between $32,532 and $162,660 under the Community Spouse Resource Allowance.

If the community spouse's monthly income falls below $2,643.75, Delaware allows income from the institutionalized spouse to bridge the gap up to that minimum Monthly Maintenance Needs Allowance. The income limit for a single applicant is $2,485 per month. The home equity limit is $752,000 in 2026. Delaware uses the federal minimum—meaning homes with equity above that threshold are generally counted as a countable asset, which can affect eligibility.*

For more information about the Medicaid program, visit www.medicaid.gov or contact the Delaware Division of Medicaid and Medical Assistance (DMMA) at 1-302-571-4900 or 1-866-843-7212.

Medicaid for Long-Term Care in Delaware

Diamond State Health Plan – Plus (DSHP-Plus) is Delaware's Medicaid program for long-term care services and supports. The program will pay for long-term care if you meet financial and functional eligibility requirements. In 2026, the asset limit is $2,000 for a single applicant. For married couples where only one spouse is applying, the applicant spouse is limited to $2,000 in countable assets while the community spouse may retain between $32,532 and $162,660 under the Community Spouse Resource Allowance.

If the community spouse's monthly income falls below $2,643.75, Delaware allows income from the institutionalized spouse to bridge the gap up to that minimum Monthly Maintenance Needs Allowance. The income limit for a single applicant is $2,485 per month. The home equity limit is $752,000 in 2026. Delaware uses the federal minimum—meaning homes with equity above that threshold are generally counted as a countable asset, which can affect eligibility.

For more information about the Medicaid program, visit www.medicaid.gov or contact the Delaware Division of Medicaid and Medical Assistance (DMMA) at 1-302-571-4900 or 1-866-843-7212.

Delaware Medicaid Estate Recovery Program

When you apply for DSHP-Plus, you are notified during your initial eligibility application that your estate may be subject to the Medicaid Estate Recovery Program (MERP). Delaware's Medicaid agency will seek to recover the cost of long-term care services from assets remaining in your estate at the time of death. Assets subject to recovery include your home and other real estate, bank accounts, financial assets, vehicles, cash, and household goods. Certain assets held in trusts may also be subject to recovery.

Recovery is deferred while a surviving spouse, minor child under age 21, or disabled child remains alive. The state will never require a living spouse to leave the home. Medicaid Eligibility in Delaware Calculator

Delaware enforces a 60-month look-back period to ensure no improper asset transfers occurred before application for DSHP-Plus long-term care services. 

If the deceased owns no assets at the time of death, there is nothing to recover. If you have a qualified Partnership Long-Term Care Insurance policy, the total amount of benefits paid by your policy is sheltered from both Medicaid eligibility calculations and estate recovery. This is one of the most powerful consumer protections the Partnership Program provides.

Long-Term Care Costs Rising in Delaware

Care costs in Delaware are well above national averages and continue to increase. The type of care required and the location within the state both significantly affect what you or a loved one will pay. Use the LTC News Cost of Long-Term Care Services Calculator to see current costs in your zip code and project future costs.

Wilmington / New Castle County

Wilmington is Delaware's largest metro area. The average cost of a nursing home runs approximately $13,495 per month. Assisted living averages $7,433 per month for base costs—with surcharges added for additional services based on the individual's care needs. 

Other Population Centers

Other communities across Delaware include Dover, Newark, Middletown, Smyrna, Milford, Georgetown, Lewes, Rehoboth Beach, and Seaford. Costs vary across New Castle, Kent, and Sussex counties. Use the Cost of Care Calculator for the most accurate local figures.

Rate Stability Rules

Delaware consumers enjoy additional peace of mind because the state has adopted Long-Term Care Insurance Rate Stability Rules. These rules, developed by the National Association of Insurance Commissioners (NAIC), make it significantly harder for an insurance company to receive an approved rate increase. Insurers must demonstrate that the original policy was mispriced before a rate increase can be approved.

Products Approved in Delaware

A variety of affordable products are approved in Delaware for Long-Term Care planning. These include traditional plans (including Partnership-certified policies), short-duration plans, and asset-based "hybrid" plans that combine life insurance or an annuity with long-term care benefits.

Tax Incentives

Delaware does not currently offer a state income tax incentive for Long-Term Care Insurance. However, federal tax incentives do apply. Many policyholders can deduct a portion of their premiums as a qualified medical expense, subject to age-based IRS limits. Benefits received from qualified LTC policies are generally tax-free up to the IRS per diem limit of $430 per day in 2026.

Beginning in 2026, a new federal rule allows qualifying individuals under age 59½ to use distributions from certain retirement accounts—such as a 401(k) or IRA—to pay Long-Term Care Insurance premiums without the 10 percent early-withdrawal penalty, if their plan permits. Consult a qualified tax advisor to confirm how these incentives apply to your situation.

Reverse Mortgages in Delaware

Reverse mortgages are available in Delaware and can be a useful way to access home equity to help fund retirement or long-term care needs.

A reverse mortgage—most commonly a federally insured Home Equity Conversion Mortgage (HECM)—allows homeowners to convert a portion of their home's equity into tax-free cash. Unlike a traditional loan, you make no monthly mortgage payments. The loan is typically repaid when you sell the home, move out permanently, or pass away.

A reverse mortgage may allow you to:

• Supplement retirement income
• Eliminate an existing mortgage payment
• Fund in-home care services
• Help pay Long-Term Care Insurance premiums
• Cover medical expenses or daily living costs

To qualify for a reverse mortgage in Delaware, you must be age 62 or older, the home must be your primary residence, you must have sufficient equity, you must stay current on property taxes and homeowners insurance, and you must complete HUD-approved counseling before the loan closes.

By law, you can never owe more than your home's value when the loan is repaid—you are protected if the home loses value.

Reverse mortgages are complex financial products. Evaluate them carefully with a qualified professional as part of your overall financial and long-term care plan. Learn more about reverse mortgages on LTC News.

Life Settlements and Viatical Settlements in Delaware

Life settlements and viatical settlements are available in Delaware and can provide a way to convert an existing life insurance policy into cash to help pay for long-term care.

A life settlement allows you to sell your life insurance policy to a licensed third party for a lump sum greater than the policy's cash surrender value but less than the death benefit. The buyer assumes future premium payments and receives the death benefit when the insured passes away.

A viatical settlement is designed for individuals who are terminally or chronically ill. Because of the accelerated timeline, viatical settlements often provide higher payouts and faster access to funds.

Proceeds may be used to:

• Pay for in-home care, assisted living, or nursing home services
• Cover hospice or palliative care expenses
• Pay for medications, medical equipment, or therapies
• Supplement retirement income or ease the financial burden on family members

Delaware regulates both life and viatical settlements through the Delaware Department of Insurance. Providers and brokers must be licensed by the state, transactions require clear disclosures and informed consent, and restrictions generally apply to newly issued policies. Viatical settlement proceeds are generally tax-free if IRS requirements are met; life settlement proceeds may be taxable depending on your situation.

Selling your policy will reduce or eliminate the death benefit for your beneficiaries. Work with a licensed professional and carefully evaluate your options as part of your broader financial and long-term care plan. Learn more about life settlements and viatical settlements on LTC News.

State Resources for Aging and Long-Term Care in Delaware

You don't have to navigate long-term care alone. Delaware offers a network of state agencies, regional programs, and nonprofit organizations to help you or a loved one access care, understand benefits, and maintain independence. Many services are free or low-cost.

Delaware Aging and Disability Resource Center (ADRC) — 800-223-9074

The Delaware ADRC is a one-stop access point for information and services for older persons and adults with disabilities throughout the state. The ADRC assists with personal care services, home-delivered meals, emergency response systems, and respite care. Staff can help you and your family understand available options and identify which services best fit individual needs and preferences. Delaware Department of Health and Social Services

The Delaware Long-Term Care Ombudsman's office is available through the ADRC. The Long-Term Care Ombudsman Program provides services for residents who live in long-term care settings as well as those who receive home and community-based services, including advocacy and complaint resolution. Services are free and confidential. Delaware Department of Health and Social Services

Delaware Division of Services for Aging and Adults with Physical Disabilities (DSAAPD) — 800-223-9074

This agency provides information and referrals—including home- and community-based services—to help older adults remain in their own homes and delay or avoid the need for a long-term care facility. The agency also offers a Nursing Home Transition program for DSHP-Plus eligible residents, helping them return to the community.

Meals on Wheels Delaware — 302-656-3257

Five regional Meals on Wheels programs across Delaware deliver nearly 900,000 meals annually to more than 6,200 homebound seniors and adults with disabilities.

Delaware Medicare Assistance Bureau (DMAB) — 800-336-9500

The Delaware Medicare Assistance Bureau provides free health insurance counseling for people with Medicare. Counselors help you understand Medicare, Medicaid, Medigap, Medicare Part D, Long-Term Care Insurance, and other health insurance options. There is no charge for this service—it is available to all Medicare beneficiaries and new enrollees.

Delaware Adult Protective Services (APS) — 1-888-APS-4302 (1-888-277-4302)

Adult Protective Services investigates suspected abuse, neglect, and financial exploitation of vulnerable adults and can arrange emergency services when needed.