Alabama Long-Term Care

Specific long-term care information pertaining to Alabama.

Important State Information

Federal Partnership Program

Alabama participates in the federal/state partnership program. This program provides additional asset protection. In the event that you exhaust your benefits from a qualified Alabama Partnership Long-Term Care policy, the state will provide you dollar-for-dollar asset protection. This would allow you to qualify for Medicaid long-term care benefits while retaining more of your assets than what Medicaid would typically allow.

Policy Example

This means even a small qualified long-term care insurance policy can have powerful asset protection. For example, if the policy paid $150,000 in benefits that same amount will be “disregarded” from the spend-down requirements. For many, this can protect a large part of their estate. This means you would be allowed to keep the amount your policy paid in benefits in addition to the Medicaid allowable amount and still qualify for the Medicaid Long-Term Care benefit. The Partnership Program also protects those assets after death from Medicaid estate recovery.


Most states have reciprocity with other states' long-term-care partnership programs including Alabama. This means if you move from or to Alabama your partnership asset protection follows you as well.


Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is a minimum of $27,000 up to a maximum of one-half of countable assets up to $128,640. Your spouse’s minimum monthly income allowance is $2,349. * The home equity limit is $595,000.

For more information about the Medicaid program visit

Products Approved in Alabama

A variety of affordable products are approved in Alabama for Long-Term Care Insurance planning including traditional partnership certified plans, limited-duration plans, and asset-based or “hybrid” plans.

Rate Stability Rules

In addition, Alabama consumers enjoy additional peace-of-mind as the state has adopted Long-Term Care Insurance Rate Stability Rules.  These rules, developed the National Association of Insurance Commissioners, makes it much harder for an insurance company to get an approved rate increase.

Tax Incentives

A state tax deduction is available for Alabama residents. Premiums paid for a Long-Term Care Insurance policy can be deducted pursuant to Section 40-18-15 of the state tax code. There are several requirements which most Long-Term Care insurance policies meet. Federal tax incentives also may apply.

*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources

Alabama state emblem
State Breakdown
State Partnership Program
State Tax Incentives
Federal Tax Incentives
Rate Stability Rules
Medicaid Spend Down $2,000
Minimum Asset Allowance $27,000
Minimum Monthly Income Allowance $2,349

Calculate the Cost of Care in Alabama

View the costs of Long-Term Care in your area. Use the slider below to view future costs of care services with inflation.

Alabama Median
Long-Term Care 2019 2034(+16 Years) 2019 2034(+16 Years)
Homemaker Services $40,063 $62,417(+$23,521) $36,528 $56,909(+$21,445)
Home Health Aide $40,063 $62,417(+$23,521) $37,706 $58,745(+$22,137)
Adult Day Care $9,373 $14,603(+$5,503) $10,712 $16,689(+$6,289)
Assisted Living Facility $40,430 $62,988(+$23,736) $44,070 $68,659(+$25,873)
Semi-Private Room $77,607 $120,910(+$45,563) $76,318 $118,901(+$44,806)
Private Room $82,333 $128,272(+$48,337) $79,713 $124,190(+$46,799)

Long-Term Care Throughout Alabama

Birmingham is the largest metro area in the state. A skilled nursing home averages $6,235 a month. Assisted Living in Birmingham averages $2,958 a month. Adult Day Care Centers average $758.00 a month. Care at home averages $3,432 a month based on a 44-hour week.


Huntsville is the second largest metro area in the state but is the most expensive metro area in the State of Alabama for nursing home care. A private room now averages $7,285 a month. Assisted Living in Huntsville averages $3,495 a month. Adult Day Care Centers average $1300 a month. Care at home averages $3,432 a month based on a 44-hour week.


Auburn, home of Auburn University, is the least expensive metro area in Alabama with the average skilled nursing home averaging $6,007 a month. Assisted Living in Auburn averages $3,700 a month. Adult Day Care Centers average $1300 a month. Care at home averages $3,432 a month based on a 44-hour week.

More Locations

Other population centers in Alabama include Albertville, Athens Decatur, Hoover, Fort Payne, Madison, and Talladega.