Louisiana Long-Term Care Resources

Discover state-specific information on long-term health care costs, taxes, rules, care options, and other information for Louisiana residents.

State Information

Louisiana participates in the Long-Term Care Insurance Partnership program helping residents protect their hard-earned assets from the future costs of long-term health care. Owners of qualified LTC Insurance can enjoy dollar-for-dollar asset protection. 

However, rapidly increasing costs for care services are becoming burdensome on residents and their families for those who do not have Long-Term Care Insurance.

There are a wide variety of care options available in Louisiana for those who require long-term health care services, including 

  • adult day care centers
  • assisted living facilities
  • continuing care retirement communities
  • home health care providers
  • memory care facilities
  • rehabilitation facilities
  • traditional nursing homes

Federal Partnership Program

The State of Louisiana has joined most states in the federal/state long-term care partnership program to help its residents protect their hard-earned assets from the high costs of long-term health care.

The program, approved by state law and authorized by the federal Deficit Reduction Act (DRA) of 2005, offers individuals a way to protect their assets in the event they exhaust the benefits in their qualified long-term care insurance policy. This allows the person to access long-term care Medicaid services without the normal spend-down requirements. The initiative encourages citizens to partner with the state-based program as they purchase qualified private long-term care insurance policies.

Policy Example

The Louisiana Long-Term Care Partnership Program provides asset disregard equal to the total amount of benefits paid by your LTC insurance policy. For example, if your policy paid $275,000 in benefits, the state will disregard that amount from the required spend-down. A single person must spend-down to $2000 in total assets to normally qualify for Medicaid’s long-term care benefits. If the person had $300,000 in assets, they would have to spend $298,000. However, if that person’s policy paid $275,000 before it was exhausted and the individual still needed long-term care, the state would ignore that $275,000. The spend-down would only be $23,000 (300,000- 277,000 [275,000 paid in benefits, + the 2000 Medicaid allows]). This protects your estate from total spend-down. 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 Louisiana. This means if you move from or to Louisiana your partnership asset protection follows you as well.


Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is $130,380. Your spouse’s minimum monthly income allowance is $3,259.50. * The home equity limit is $603,000.

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

Rate Stability Rules

In addition, Louisiana 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 Louisiana

There are several types of products available in Louisiana for Long-Term Care planning. These include traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” plans.

Tax Incentives

Louisiana used to have a state tax incentive for Long-Term Care Insurance. However, this tax is no longer in effect. Federal tax incentives remain, plus pre-tax money from a Health Savings Account can still be used to pay for quaified Long-Term Care Insurance premiums.

Reverse Mortgages in Louisiana

Reverse mortgages are available in Louisiana. A reverse mortgage is a home equity loan where the borrower does not have to make payments.

This type of mortgage can increase monthly income, eliminate mortgage payments, and even fund Long-Term Care Insurance. However, Louisiana has many rules on these products, and you should seek the help of a qualified and licensed mortgage broker. 

If you have significant equity in your home and you and your spouse are at least 62 years old, you can get a reverse mortgage to turn your equity into funding long-term health care, pay for an LTC Insurance policy, pay bills and add to your retirement lifestyle.

The home must be the principal residence without any tax liens. 

Learn more about reverse mortgages by clicking here.

*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.

Louisiana state emblem

State Breakdown

State Partnership Program
State Tax Incentives
Federal Tax Incentives
Rate Stability Rules
Medicaid Spend Down $2,000
Minimum Asset Allowance $130,380
Minimum Monthly Income Allowance $3259.50
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Louisiana Cost of Care Calculator

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Long-Term Care Throughout Louisiana

New Orleans

New Orleans is the largest metro area in the state of Louisiana. The average skilled nursing facility cost runs $5,931 a month. The cost of an Assisted Living Facilityaverages $3,610 a month. Adult Day Care Centers average $1,235 a month. Care at home, based on a 44-hour week, averages $3,051 a month.

More Locations

Other population centers in the state include Baton Rouge, Bossier City, Kenner, Lafayette, Lake Charles, Metairie, and Shreveport.

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