Arkansas Long-Term Care Insurance Information

Arkansas participates in the Long-Term Care Partnership Program, allowing you to purchase qualified Long-Term Care Insurance policies that provide dollar-for-dollar asset protection. This program helps you protect assets if you later need to qualify for Medicaid after using your policy benefits.

Arkansas offers a broad range of long-term care services across the state, along with multiple insurance solutions to help you plan ahead. However, like much of the country, demand for extended care is increasing, and costs continue to rise—placing growing pressure on individuals and families who are unprepared.

If you or a loved one needs extended long-term care, Arkansas provides a wide variety of 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
• Respite care services
• Rehabilitation and skilled nursing facilities
• Traditional nursing homes

These options offer flexibility in care settings, but access and quality often depend on financial resources and planning. While many qualified care providers are available throughout Arkansas, the costs are rising due to the increasing demand. 

Several insurance solutions are available to safeguard income and assets from the high costs and burdens of aging. Plus, all tax-qualified Long-Term Care Insurance policies in Arkansas have various consumer protections in addition to available tax benefits.

Federal Partnership Program

Arkansas participates in the Long-Term Care Partnership Program, authorized under the Deficit Reduction Act of 2005. This program provides dollar-for-dollar asset protection for individuals who own qualified Long-Term Care Insurance policies. If you exhaust your policy benefits, you may still qualify for Medicaid while retaining assets equal to the total benefits paid—allowing you to preserve more of your estate than standard Medicaid rules typically permit.

Without a Partnership LTC Insurance policy, Medicaid eligibility typically requires you to spend down most of your assets. The Partnership Program allows you to:

• Preserve savings and retirement assets
• Protect assets for a spouse or heirs
• Access Medicaid as a safety net without losing everything
• Maintain greater financial independence

In most cases, the protected assets are also exempt from Medicaid estate recovery, providing additional peace of mind.

Policy Example

For example, your policy pays out $375,000 in benefits but you are still alive and require care. You earn a Medicaid asset disregard that allows you to protect that same amount over the asset level you would otherwise be forced to meet in order to be eligible for Medicaid’s Long-Term Care benefit. 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 Arkansas.

Medicaid

Arkansas Medicaid will pay for long-term care services if you have limited income and assets. In 2026, the Medicaid asset limit remains $2,000 for an individual. For married couples, the community spouse may retain between $32,532 and up to $162,660 in countable assets. The minimum monthly maintenance needs allowance for a spouse is $2,643.75. The home equity limit is $752,000.

For more information about the Medicaid program visit www.medicaid.gov

Arkansas Medicaid Estate Recovery Program

When you receive Medicaid long-term services and supports in Arkansas, your estate may be subject to recovery under the Medicaid Estate Recovery Program (MERP), as required by federal and state law. In Arkansas, estate recovery generally applies to probate assets, including your home (if it passes through probate), other real estate, bank accounts, and certain financial assets. Assets that transfer outside of probate—such as jointly owned property with rights of survivorship or certain trusts—are typically not subject to recovery.

Medicaid provides long-term care services only if you meet strict income and asset requirements. However, the state will not pursue recovery while a spouse is living, and a surviving spouse will not be required to leave the home. Recovery may also be delayed if there is a surviving minor, blind, or disabled child.

After the death of a Medicaid recipient, the Arkansas Department of Human Services (DHS) files a claim against the estate during probate to recover the cost of benefits paid. If the estate does not go through probate, the state may issue a notice or take action to ensure it is informed of any future property transfer or probate proceeding so it can assert its claim.

Arkansas enforces a five-year (60-month) look-back period prior to Medicaid application. Transfers of assets for less than fair market value during this period may result in a penalty period of ineligibility. Because Arkansas participates in the Long-Term Care Partnership Program, qualified Partnership Long-Term Care Insurance policies provide important protection. The total amount of benefits paid by the policy is generally protected from Medicaid spend-down requirements and estate recovery, allowing you to preserve assets equal to the benefits paid.

You can learn more here - Your_Guide_to_Medicaid_Estate_Recovery_in_Arkansas.pdf  

Cost of Long-Term Care Services in Arkansas

Long-term care costs are costly but the actuakl cost of extended care servcies in Arkansas depend on where you or a loved one lives. Use the LTC News Cost of Care Calculator to find the most current cost of long-term care services based on zip code.

Little Rock

Little Rock is the largest metro area in the State of Arkansas. As you would expect, it features higher average costs than the rest of the state. The average skilled nursing facility is running $6,908 a month. Assisted Living averages $4,104 a month. Adult Day Care Centers average $2,147 a month. Care at home, based on a 44-hour week, averages $3,740 a month.

Remember, assisted living cost estimates are for base costs. These long-term health care facilities will also have surcharges that will be added to the bill based on additional services that the care recipient requires. 

Fayetteville

Fayetteville is the second-largest metro area in the state and home of the University of Arkansas campus. The average skilled nursing facility is the most expensive in Arkansas running an average of $7,065 a month. Assisted Living averages $3,717 a month. Adult Day Care Centers average $2,312 a month. Care at home, based on a 44-hour week, averages $4,380 a month.

Other Locations

Other large population centers in Arkansas include Benton,  Bentonville, Conway, Fayetteville, Fort Smith, Jonesboro, Pine Bluff, Rogers.

State Resources for Aging and Long-Term Care in Arkansas 

You don’t have to navigate aging and long-term care alone. Arkansas offers a strong network of state agencies, nonprofit organizations, and community programs that can help you find care, understand benefits, and maintain independence. Many of these services are free or low-cost, especially for older adults and families with limited income.

• Arkansas Association of Area Agencies on Aging  - 866-379-3901

Arkansas has eight Area Agencies on Aging (AAAs) serving every region of the state.

They can help you:

• Plan for long-term care and evaluate care options
• Access in-home care, personal care, and adult day services
• Arrange home-delivered and congregate meals
• Coordinate transportation and caregiver support
• Connect to Medicaid waiver programs and other benefits

👉 These agencies are often your first and most important point of contact.

• Arkansas Community Action Agencies Association, Inc.  - 501-372-0807

The mission is to provide education, advocacy, and a unified voice for Community Action Agencies to reduce poverty and promote thriving communities in Arkansas. The association is a hub of 14 community-based private, nonprofit organizations that assist low- to moderate-income individuals across the state.

Various programs include meal delivery, non-emergency medical transportation, utility bill assistance, weatherization for older homeowners and renters, and counseling on long-term care services. 

• Arkansas Long-Term Care Ombudsman Program - 501-682-8950

The Ombudsman advocates for residents in:

• Nursing homes
• Assisted living facilities
• Other long-term care settings

Services include:

• Investigating complaints about care and safety
• Protecting resident rights
• Resolving disputes with facilities

All services are free and confidential.

• Arkansas Seniors Health Insurance Information Program - 800-224-6330

SHIIP provides free, unbiased Medicare counseling to Arkansas residents.

You can get help with:

• Medicare plan comparisons and enrollment
• Understanding what Medicare covers—and does not cover—for long-term care
• Medicaid coordination
• Billing issues, appeals, and denied claims

👉 Counselors provide objective guidance, not sales.

The program helps all Medicare-eligible individuals obtain accurate and objective health insurance information to assist state residents in making informed health coverage decisions. SHIIP counseling also helps individuals understand their rights and protections under their Medicare coverage.

The staff is trained to answer questions about Medicare benefits and related programs, Medicaid, and Long-Term Care Insurance. The staff can also help seniors understand and reconcile their medical bills and dispute denied claims.  

• Arkansas Department of Human Services - 855-372-1084

The Department of Human Services (DHS) administers key long-term care programs, including:

• Medicaid and ARChoices (home- and community-based services)
• Nursing home coverage
• Adult Protective Services

DHS is essential for determining eligibility and access to benefits.

• Arkansas Adult Protective Services - 800-482-8049

Adult Protective Services helps protect vulnerable adults from:

• Abuse
• Neglect
• Exploitation

APS can investigate reports and arrange emergency services when needed.

• Arkansas Community Action Agencies Association - 501-372-0807

This statewide network supports low- and moderate-income residents through:

• Utility assistance and weatherization
• Transportation services
• Nutrition programs
• Housing and financial counseling

These programs can help older adults remain safely at home longer.

• Arkansas Department of Veterans Affairs - 501-683-2382

Veterans and their families may qualify for:

• Long-term care services and veterans homes
• Aid and Attendance or Housebound benefits
• Health care and pension support
• Burial and memorial benefits

👉 These benefits can significantly offset long-term care costs.

Veterans have access to various programs and services that can assist them and their families as they get older. The Arkansas Department of Veterans Affairs provides information and advocacy to qualifying U.S. veterans, including their spouses. 

Arkansas offers a comprehensive network of aging and long-term care resources, including Area Agencies on Aging, DHS programs, SHIIP counseling, and advocacy services. These organizations provide free, trusted guidance to help you make informed decisions and maintain independence. Don't be afraid to seek help and information.

Rate Stability Rules

In addition, Arkansas 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.

Products Approved in Arkansas

A variety of affordable products are approved in Arkansas for Long-Term Care planning. These include traditional partnership certified policies, limited-duration policies and asset-based “hybrid” plans.

Tax Incentives

Arkansas allows a state income tax deduction for premiums paid on qualified Long-Term Care Insurance policies, following federal tax rules. Premiums may be deductible as a medical expense if you itemize and meet applicable thresholds. Federal tax incentives also apply, including age-based premium deductions and generally tax-free benefits from qualified policies.

Reverse Mortgages in Arkansas

Reverse mortgages in Arkansas can provide access to home equity to help fund long-term care and support retirement needs. However, these loans are complex, so it’s important to work with a qualified, licensed professional and understand how they fit into your overall financial and long-term care plan. Reverse mortgages can be a useful financial tool if you are age 62 or older and have built significant equity in your home.

A reverse mortgage—most commonly a federally insured Home Equity Conversion Mortgage (HECM)—allows you to convert part of your home’s equity into tax-free cash without making 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 existing mortgage payments
• Pay for in-home care or other long-term care services
• Help fund a Long-Term Care Insurance policy
• Cover medical bills or everyday expenses

Key Considerations

• The loan balance increases over time and reduces home equity
• Heirs typically repay the loan by selling or refinancing the home
• You cannot be forced to leave your home as long as you meet loan obligations
• Reverse mortgages can impact estate planning and Medicaid eligibility if not structured properly

Learn more about reverse mortgages on LTC News.

Life Settlements and Viatical Settlements in Arkansas

Life settlements are available in Arkansas and can provide a way to help pay for long-term care by converting an existing life insurance policy into cash. If you are terminally ill, a related option called a viatical settlement may offer even greater financial flexibility. A life settlement allows you to sell your life insurance policy to a licensed buyer for a lump sum that is greater than the policy’s cash surrender value but less than the death benefit. The buyer takes over premium payments and receives the death benefit later.

A viatical settlement is designed specifically for individuals with a serious or terminal illness. Because of the shorter life expectancy, payouts are typically higher than standard life settlements and funds are often received more quickly. 

If you qualify, proceeds from a life or viatical settlement can be used to:

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

👉 For individuals facing a terminal illness, viatical settlements can provide immediate funds to improve comfort, care quality, and quality of life.

Arkansas regulates life and viatical settlements, requiring licensing, disclosures, and consumer protections to help ensure fair transactions.

Learn more about life settlements/viatical settlements on LTC News.

*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.