California Long-Term Care

Important State Information

Federal Partnership Program

The California Partnership for Long-Term Care is an innovative program offered through the collaboration of the State of California, Department of Health Care Services in cooperation with a select number of private insurance companies. It was one of the four original partnership states. However, while most have reciprocity with other states' long-term-care partnership programs, California does not.

California Partnership requires that a Care Management Provider Agency, approved by the State Department of Health Care Services and independent from the insurer, provide care coordination for Partnership policyholders. Using a collaborative process, the care manager works with the policyholder, their family, and physician to complete a comprehensive assessment to determine the client’s needs and resources, and develop a detailed Plan of Care individualized to meet those needs.

Lifetime Asset Protection: This feature assures that catastrophic long-term care expenses won't reduce you to poverty even if you run out of insurance benefits. That's something other long-term care insurance policies do not offer.

Here is how this special feature works: When you need care, your California Partnership-approved private long-term care insurance policy pays for your care in the same way other high-quality long-term care policies would. However, unlike a traditional non-partnership policy, each dollar your partnership policy pays out in benefits entitles you to keep a dollar of your assets if you ever need to apply for Medi-Cal services.

For most people, a partnership insurance policy will still provide benefits for the duration of the care needed. However, if care extends beyond that point, you won't have to impoverish yourself if you run out of insurance benefits. You can apply to Medi-Cal for assistance in paying the costs of your continued care and avoid having to "spend down" your savings to the poverty level. Each dollar your Partnership policy pays in benefits for your care is protected against Medi-Cal "spend down" rules. These assets are also protected in your estate after death so your heirs are able in to inherit those assets without worry to reimbursing the state for the cost of your care.

Policy Example

If your California Partnership Long-Term Care policy paid $650,000 in benefits when it exhausted you would be entitled to safeguard that amount from the normal Medi-Cal spend-dow requirement.

Reciprocity

While most states honor other states Long-Term Care Partnership Programs, California does not. This means if you move to California from another state, while you can receive benefits in California, the State of California will not honor the additional asset protection offered by the original state.

If a California resident with a partnership policy moves out of California, the partnership benefits will not be honored by any other state. All other policy benefits are good in any other state, however.

Medi-Cal

Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is $126,420. Your spouse’s minimum monthly income allowance is $3,160.50. *

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

Rate Stability Rules

In addition, California 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 California

A variety of affordable products are approved in California for Long-Term Care planning including the partnership policies, traditional plans, and asset-based “hybrid” policies.

Tax Incentives

California permits the same tax deduction as is allowed for federal income tax purposes for premiums paid for the purchase of qualified LTC insurance. The federal tax incentives also 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

California state emblem
State Breakdown
State Partnership Program
State Tax Incentives
Federal Tax Incentives
Rate Stability Rules
Medicaid Spend Down $2,000
Minimum Asset Allowance $126,420
Minimum Monthly Income Allowance $3,160.50
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Calculate the Cost of Care in California

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

California Median
Long-Term Care 2019 2034(+16 Years) 2019 2034(+16 Years)
Homemaker Services $61,273 $95,461(+$35,973) $54,203 $84,446(+$31,822)
Home Health Aide $61,273 $95,461(+$35,973) $54,203 $84,446(+$31,822)
Adult Day Care $20,755 $32,335(+$12,185) $20,425 $31,821(+$11,991)
Assisted Living Facility $55,620 $86,654(+$32,654) $38,934 $60,658(+$22,858)
Semi-Private Room $103,386 $161,072(+$60,697) $92,860 $144,672(+$54,517)
Private Room $121,338 $189,041(+$71,237) $113,774 $177,256(+$66,796)

Long-Term Care Throughout California

Los Angeles

Los Angeles is the largest metro area in California. While expensive, LA does not have the most expensive long-term care costs in the state. There are many providers to choose from. The average skilled nursing facility is running $9,125 a month. Assisted Living averages $4,500 a month. Adult Day Care Centers average $1,565 a month. Care at home, based on a 44-hour week, averages $4,767 a month.

San Diego

San Diego is the third largest metro area in the State of California. The average skilled nursing facility is very expensive running an average of $10,646 a month. Assisted Living averages $4,500 a month. Adult Day Care Centers average $1,733 a month. Care at home, based on a 44-hour week, averages $4,799 a month.

San Francisco

San Francisco is the second largest metro area in the state. It features very expensive care services. The average skilled nursing facility is very expensive running an average of $11,650 a month. Assisted Living averages $5,500 a month. Adult Day Care Centers average $1,733 a month. Care at home, based on a 44-hour week, averages $5,625 a month.

More Locations

Other major population centers in California include Anaheim, Bakersfield, Fresno, Long Beach, Modesto, Oakland, Oceanside, Riverside, Sacramento (the state capital), San Bernardino,  San Jose, Santa Ana, Stockton, and many others. 

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