Long-Term Care Costs Getting Bigger in Texas: LTC Insurance Paying Big Benefits
You might think of Texas as the state where everything feels a little bigger. That includes the population. The U.S. Census Bureau estimated that 31,290,831 people lived in Texas as of July 2024, a sharp increase from the 29,145,505 residents counted in the 2020 census.
Texas is the second-largest state by population, behind California, and second in land area only to Alaska.
A growing share of those residents are older adults. According to the Texas Demographic Center, nearly 14 percent of Texans are age 65 or older. That comes to more than 4.3 million people, and the number is rising quickly. The state projects that by 2050, the 65-plus population will more than double to about 8.3 million. The number of adults age 40 and older is also expanding, creating increased demand for health care, retirement planning, and long-term care resources.
Greater Pressure on LTC System in Decades Ahead
With an aging population, the demand for long-term care services will put more significant pressure on the care system in Texas.
The demand for senior care is quickly rising in Texas, and the labor supply is tightening as we continue to recruit highly skilled and compassionate caregivers. — Eric vanGoethem, who with his wife Sabrina operates the Amada Senior Care franchise in Dallas.
Texas has long been noted for more affordable long-term health care services, but this greater demand will increase these costs in the years ahead.
Bigger Costs Have Tremendous Financial Impact
The LTC News Cost of Care Calculator indicates that by the year 2045, the state average cost of in-home care in Texas (based on a 44-hour week) is expected to cost over $7,901 a month.
See the calculator here - Texas Long-Term Care Costs | LTC News
The average base cost of assisted living will be just over $100,000 a year in 2045; however, surcharges depending on the number of services a person requires will increase the full cost of care in the facility.
Most long-term care services are delivered at home or in assisted living facilities. However, nursing homes and memory care facilities still play a vital role in long-term health care and those costs are substantially more.
In the year 2045, an average nursing home is expected to cost over $185,000 a year, even more in some areas of Texas. Talk about hitting your budget!
Long-Term Care Affects Families and Finances
Due to the rapidly increasing cost of care and a shrinking supply of caregivers based on demand, we are seeing more family members having to assume the caregiver role." — John Paschal, who operates Amada Senior Care in San Antonio.
Paschal sees the stress and anxiety placed on Texas families when a loved one needs long-term care services. People require extended health care due to an illness, accident, or the consequences of longevity. Some people are unaware that health insurance, including Medicare and supplements, pays little or nothing toward long-term care.
Many families think about long-term care planning for the first time when a crisis happens with a loved one, often a parent.
"The impact of caring for a loved one can be exhausting, not to mention leading to health issues and relationship concerns. It is key that they are aware of their own personal well-being and seek out help in terms of support as well as professional respite help," Paschal explained.
Current Cost of Care in Texas is Expensive
As costs for long-term care services do increase every year, they are not cheap today. Plus, charges vary depending on where a person lives. You see a variation in costs throughout Texas.
For example, in San Antonio, in-home care (based on a 44-hour week) averages just over $61,000 a year on average. If you live in Beaumont, you see the average cost running about $56,000 for the same amount of care. The same amount of care in Laredo, Texas, is even more affordable, by comparison, with today's average running just under $44,000 a year.
According to the LTC News Cost of Care Calculator, Texas's most expensive home health care is in Austin, Texas. The average cost is about $69,000 a year.
Assisted living and nursing home costs are also increasing in cost. The average costs of a nursing home in Texas is running over $100,473 and the base cost of an assisted living facility averages over $52,297 a year, with base cost for memory care averaging $61,842 a year. Like in-home care, cost will depend on location and types of required services.
The calculator shows you the current and future costs of all types of long-term care services in all 50 states and the District of Columbia - Cost of Long-Term Care Calculator - Choose Your State | LTC News
The need for a funding source for the future costs and burdens of aging and changing health is even more crucial with the rapidly higher costs for these services in the decades ahead.
Nationwide you see more demand for care due to increasing longevity and advances in medical science. However, advances in medical science and greater lifespans create a double-edged sword - an ever-increasing need for long-term care services and supervision and care for those with dementia.
LTC Insurance Places Policyholders and Families in Better Position
Amada's vanGoethem notes that families with Long-Term Care Insurance are in a better position to access their choice of quality care options.
"With the cost of care is rising, our clients with Long-Term Care Insurance plans are often better positioned to age in place in the way that they want," he said.
When insurance is not available to fund long-term health care, families will depend on loved ones to be caregivers or use their own income and assets to pay for services. Neither option is ideal.
Texas is one of 45 states that participate in the Long-Term Care Partnership Program. If you own a Partnership LTC policy you have additional dollar-for-dollar asset protection. You can shelter assets and still qualify for Medicaid if you exhaust all the money in the policy. Even a small policy can provide powerful asset protection - Retirement Planning Secret - Partnership LTC Plans Shelter Assets | LTC News
Long-Term Care Insurance is custom designed and is affordable for most people. For people with little or no assets Medicaid will provide benefits. Since the first Long-Term Care Insurance policies were sold in Texas, policyholders have relied on them to stay home, remain independent, and protect family finances. These policies have paid significant benefits over the years. According to AHIP’s 2025 Long-Term Care Insurance report, insurers have paid $10,464,171,980 in long-term care benefits to Texas residents. Those benefits help families afford in-home care, assisted living, memory care, and nursing home services without draining savings.
Best Time to Plan is Before Retirement
Most experts suggest planning in your 40s or 50s before retirement. LTC Insurance is medically underwritten, so you should have reasonably good health to obtain coverage. The rules with every insurance company differ, so speak with a licensed and experienced Long-Term Care Insurance specialist to assist you in your shopping. Premiums also vary over 100% between insurance companies - Work With a Specialist | LTC News
Get Help with Finding Care and Processing LTC Insurance Claim
If you have a family member who needs care, there is help available. LTC NEWS offers help with finding care and even with help getting a Long-Term Care Insurance claim processed correctly.
Working with Amada Senior Care, one of the nation's most respected home health agencies, they will provide free - no-obligation help processing a claim, care coordination, and more.
Navigating the claims process can be a daunting task. Their professional staff work with the insurance company and get your claim approved and benefits flowing no matter who you may be using for care. Of course, they can provide outstanding in-home care services.
If you just need help find appropriate care and don't have a policy, they will assist you as well - Filing a Long-Term Care Insurance Claim | LTC News
Aging is part of being human. Being prepared will provide you with less stress and peace of mind. Your loved ones will enjoy having the time to be family instead of being a caregiver.
Whether you live in Texas or anywhere in the United States, you can obtain quality care and asset protection. But don't wait until it becomes a crisis.