Connecticut Long-Term Care Insurance Information

You already see it happening across Connecticut—neighbors aging at home longer, families stepping in as caregivers, and the cost of care rising faster than most people expect. Whether you live in Hartford, New Haven, or along the shoreline, one reality is consistent: long-term care in Connecticut is among the most expensive in the country, and planning ahead is no longer optional. Finding quality long-term care services for a loved one who needs extended care now will improve their qualiity of life.

Connecticut offers a broad and high-quality network of extended care options, but that access comes at a price. The costs across the state continue to climb due to:

• Workforce shortages in caregiving
• Rising wages and operating expenses
• Increased demand from an aging population

Care Options Available Statewide

If you or a loved one needs long-term care, Connecticut provides a full continuum of services:

• Adult day care centers
• Assisted living facilities
• Continuing care retirement communities (CCRCs)
• Home health care providers
• Memory care facilities
• Respite care
• Rehabilitation centers
• Skilled nursing homes

👉 The challenge is not availability—it’s affordability over time.

The monthly costs in Connecticut for long-term care services will impact anyone's budget. The cost of long-erm care services depends on the type of services you, or a loved one requires and where you live. You can find the most updated cost of long-term care services by using the LTC News Cost of Care Calculator by using your zip code.

Hartford

The largest metro area in the State of Connecticut is Hartford. The average skilled nursing facility cost runs $18,739 a month. Assisted Living averages $6,394 a month before sur-charges. Adult Day Care Centers average $2,122 a month. Care at home, based on a 44-hour week, averages $5,6507 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. 

Other Locations

Other population centers in Connecticut include Bridgeport, New Haven, Norwalk, Stamford, and Waterbury, 

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 Connecticut have various consumer protections in addition to available tax benefits.

Federal Partnership Program

Connecticut participates in the Long-Term Care Partnership Program, a public-private initiative that allows you to purchase qualified Long-Term Care Insurance policies with valuable asset protection benefits. Connecticut’s Long-Term Care Partnership Program allows you to purchase qualified insurance that not only helps pay for care but also protects your assets. If you exhaust your policy benefits, you can qualify for Medicaid while retaining assets equal to the benefits paid—helping you preserve your financial future.

Through the Connecticut Partnership for Long-Term Care, the state works with private insurance companies to offer specially designed policies that not only help pay for long-term care services but also provide Medicaid asset protection if you later need assistance.

Policy Example

In this example a policy pays out $650,000 in benefits when the benefits are exhausted, however, you are still living and require long-term care services. The state will disregard that same amount in the calculation for the Medicaid Long-Term Care benefit. This way you are able to keep a substantially larger amount of savings then you would otherwise be allowed to keep and still qualify for Medicaid. 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 Connecticut. This means if you move from or to Connecticut your additional partnership asset protection will be honored.

Medicaid

HUSKY Health, Connecticut’s Medicaid program, will pay for long-term care services if you meet eligibility requirements. In 2026, the Medicaid asset limit remains $1,600 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 $1,033,000.

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

Connecticut Medicaid Estate Recovery Program

When you receive long-term care services through HUSKY Health, your estate may be subject to recovery under the Medicaid Estate Recovery Program (MERP). Recovery generally applies to probate assets such as your home, bank accounts, and other financial property. The state will not pursue recovery while a spouse is living or force a surviving spouse to leave the home. Connecticut enforces a five-year look-back period for asset transfers. If you have a qualified Partnership Long-Term Care Insurance policy, the benefits paid are protected from both Medicaid eligibility limits and estate recovery.

Important Protections

• The state will not pursue recovery while a spouse is living
• A surviving spouse cannot be forced to leave the home
• Recovery may be delayed or waived if there is a minor, blind, or disabled child
• If no assets remain in the estate, there is nothing to recover

State Resources for Aging and Long-Term Care in Connecticut

When you begin exploring long-term care in Connecticut, you quickly realize the state offers a wide range of services designed to support aging adults at every stage. From care at home to more structured residential settings, understanding the available resources is the first step in making informed decisions for yourself or a loved one. Understanding the full range of available resources, including state programs, community services, and private care options, is the first step in making informed, confident decisions for yourself or someone you love.

• Aging and Disability Resource Centers - 860-424-5055

Often referred to through the state’s “Community Choices” initiative, ADRCs serve as a central hub connecting older adults, individuals with disabilities, and caregivers to available services and funding options. These centers provide:

• Benefits screening
• Options counseling
• Care transition support
• Guidance on long-term care planning

👉 ADRCs are often the first call families make when navigating care decisions in Connecticut.

• Connecticut Long-Term Care Ombudsman Program (LTCOP) - 866-388-1888

The Long-Term Care Ombudsman Program (LTCOP) works to improve the quality of life and the quality of care of Connecticut citizens living in nursing homes, residential care homes, and assisted living communities. The Long-Term Care Ombudsman Program advocates for residents living in:

• Nursing homes
• Residential care homes
• Assisted living communities

Key services include:

• Investigating complaints of abuse or neglect
• Monitoring facility conditions and quality of life
• Educating residents and families on their legal rights
• Representing residents’ interests with government agencies

👉 This program is a critical safeguard for ensuring quality care and accountability.

• Connecticut Legal Aid Network- 800- 453-3320

The Connecticut Legal Aid Network offers free and low-cost legal services to nursing home residents and other seniors throughout the state. 

Provides free or low-cost legal assistance for older adults, including:

• Protection against financial abuse, fraud, and scams
• Guidance on Medicaid and long-term care eligibility
• Help with nursing home rights and disputes
• End-of-life and advance planning support

• Money Follows the Person (855) 626-6632

This program helps eligible Medicaid (HUSKY Health) recipients transition from institutional care back into the community.

Benefits include:

• Funding for home-based care and services
• Support for housing transitions
• Assistance with regaining independence

👉 Designed to help you return home safely instead of remaining in a facility.

• Connecticut Home Care Program for Elders (800) 445-5394

One of Connecticut’s most important programs for aging in place, CHCPE helps eligible residents avoid nursing home placement by providing:

• Care management
• Adult day care services
• Homemaker and companion services
• Home-delivered meals
• Personal care assistance

👉 This program is central to helping older adults remain independent at home longer.

• MyPlaceCT - 800-994-9422

A state-supported online resource that helps you:

• Find local long-term care services
• Compare housing and care options
• Access caregiver support tools
• Navigate benefits and eligibility

👉 Think of this as Connecticut’s digital front door for long-term care planning.

• CT Area Agencies on Aging (AAAs) 

Regional agencies that provide hands-on support, including:

• Care coordination
• Caregiver resources and respite options
• Medicare counseling
• Local service referrals

The key is understanding how these resources work together. Most families in Connecticut rely on a combination of public programs, private pay options, and Long-Term Care Insurance to create a plan that protects both quality of care and financial security.

Products Approved in Connecticut

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

Tax Incentives

In Connecticut, there is still no state income tax deduction or credit specifically for Long-Term Care Insurance premiums. However, you can still benefit from several federal tax advantages, and Connecticut residents may see indirect tax relief depending on how care expenses

Reverse Mortgages in Connecticut

Reverse mortgages remain available in Connecticut and can be a useful financial tool for some older homeowners—but they require careful consideration, especially when used as part of a long-term care plan. A reverse mortgage—most commonly a Home Equity Conversion Mortgage (HECM) insured by the Federal Housing Administration—allows you to convert a portion of your home equity into tax-free cash. Unlike a traditional mortgage, no monthly loan payments are required, as long as you continue to live in the home and meet loan obligations.

For eligible homeowners, a reverse mortgage can:

• Supplement retirement income
• Eliminate existing monthly mortgage payments
• Provide funds to pay for in-home care
• Help cover expenses or even fund Long-Term Care Insurance premiums
• Support aging in place by making home modifications or paying for care

To qualify in Connecticut:

• You must be age 62 or older
• The home must be your primary residence
• You must have substantial equity in the home
• The property must meet FHA standards
• You must complete HUD-approved counseling before obtaining the loan

👉 If you are married, both spouses are protected under current rules, even if only one is the borrower, as long as eligibility requirements are met.

Important Responsibilities

Even though you do not make mortgage payments, you must:

• Pay property taxes and homeowners insurance
• Maintain the home in good condition
• Continue to live in the home as your primary residence

Failure to meet these obligations can result in loan default.

Connecticut follows federal HECM guidelines but also emphasizes consumer protections, including:

• Mandatory independent counseling through a HUD-approved agency
• Clear disclosure of loan costs and terms
• Protections for non-borrowing spouses under federal rules

A reverse mortgage may be appropriate if:

• You want to remain at home as you age
• You have significant home equity but limited liquid assets
• You need funds for care, daily expenses, or financial flexibility

Reverse mortgages can provide valuable financial flexibility for Connecticut residents, especially for those planning to age in place. However, they are not a one-size-fits-all solution. Used properly, they can support long-term care planning and help preserve other assets—but they should always be evaluated as part of a broader financial strategy.

Reverse mortgages are complex financial products. Always consult with a qualified mortgage professional and financial advisor before making a decision. Because of the complexity, it is essential to work with a licensed and experienced reverse mortgage specialist.

Learn more about reverse mortgages on LTC News. 

Life Settlements and Viatical Settlements in Connecticut (Updated March 2026)

Life settlements are available in Connecticut and can offer a practical way to help pay for long-term care by converting an existing life insurance policy into cash. If you are facing a serious or terminal illness, a related option—called a viatical settlement—may provide even greater and faster financial support. 

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
• Less than the full death benefit

Once the policy is sold:

• The buyer takes over premium payments
• The buyer receives the death benefit when you pass away

👉 This can unlock otherwise unused value in a life insurance policy to help fund long-term care or other needs.

A viatical settlement is specifically designed for individuals with a serious or terminal illness.

Because of shorter life expectancy:

• Payouts are typically higher than standard life settlements
• Funds are often received more quickly

👉 In many cases, viatical settlement proceeds are federally tax-free, making them especially valuable during a health crisis.

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 and caregiving burden on family members

👉 For individuals dealing with serious illness, these funds can provide immediate financial relief and improve quality of life.

Life and viatical settlements in Connecticut are regulated by the Connecticut Insurance Department.

The state requires:

• Licensing of all settlement providers and brokers
• Full disclosure of terms, fees, and alternatives
• Consumer protections to help prevent fraud or unfair pricing
• A required rescission period (typically allowing you to cancel after the transaction)

👉 These safeguards are designed to ensure transparency and protect policyholders.

You might consider a life settlement if:

• Your policy is no longer needed or affordable
• You want to use the value of the policy while you are still living
• You need funds for long-term care or other expenses

Remember, your beneficiaries will no longer receive the death benefit but you get money when you need it toward the end of your life. Life and viatical settlements can be valuable financial tools in Connecticut, especially when facing rising long-term care costs or serious health conditions. However, they are complex transactions and should be carefully evaluated with the help of a qualified financial advisor, tax professional, or elder law attorney.

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

This information on this page is based on the best available sources.