Tennessee Long-Term Care

Specific long-term care information pertaining to Tennessee.

Important State Information

Federal Partnership Program

The State of Tennessee is a participant in the federal/state long-term care partnership program. The program, which was authorized by an Act of Congress and signed into law by President Bush in 2005, allows states to provide additional asset protection for those who purchase qualified long-term care insurance policies.

The Tennessee Long-Term Care Partnership Program is an agreement between the state government and private insurance companies to assist individuals in planning for their long-term care needs. Insurance companies voluntarily agree to participate in the Tennessee Partnership Program by offering long-term care insurance coverage that meets certain state and federal requirements.

Long-Term Care insurance policies that qualify as partnership policies may protect the policyholder’s assets through a feature known as “Asset Disregard” under TennCare, Tennessee’s Medicaid program. “Asset Disregard” means that an amount of the policyholder’s assets equal to the amount of long-term care insurance benefits received under a qualified Partnership policy will be disregarded for the purpose of determining the insured’s eligibility for Medicaid. This generally allows a person to keep assets equal to the insurance benefits received without affecting the person’s eligibility for Medicaid.

Policy Example

If your Tennessee Partnership Long-Term Care Insurance policy paid $325,000 in benefits and you still require care the state will disregard that same amount in calculating your eligibility for the Medicaid Long-Term Care benefit. You would be able to keep that amount, in addition to the amount normally allowed and still qualify 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 Tennessee. This means if you move from or to Tennessee your partnership asset protection follows you as well.

Medicaid - TennCare

Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is $25,284. Your spouse’s minimum monthly income allowance is $2,057.50. *

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

Rate Stability Rules

In addition, Tennessee 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 Tennessee

A variety of products are approved in Tennessee for Long-Term Care planning. This includes the traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” policies.

Tax Incentives

Tennessee does not offer any state tax incentive for qualified long-term care insurance; however, federal tax incentives are still available.

*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.

Tennessee state emblem
State Breakdown
State Partnership Program
State Tax Incentives
Federal Tax Incentives
Rate Stability Rules
Medicaid Spend Down $2,000
Minimum Asset Allowance $25,284
Minimum Monthly Income Allowance $2,057.50

Calculate the Cost of Care in Tennessee

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

Tennessee Median
Long-Term Care 2019 2034(+16 Years) 2019 2034(+16 Years)
Homemaker Services $44,659 $69,577(+$26,219) $45,954 $71,596(+$26,980)
Home Health Aide $46,544 $72,513(+$27,325) $47,133 $73,431(+$27,671)
Adult Day Care $17,943 $27,954(+$10,534) $21,424 $33,378(+$12,578)
Assisted Living Facility $48,451 $75,485(+$28,445) $37,296 $58,106(+$21,896)
Semi-Private Room $78,950 $123,001(+$46,351) $82,146 $127,980(+$48,227)
Private Room $84,589 $131,787(+$49,662) $90,041 $140,280(+$52,862)
MonthYear

Long-Term Care Throughout Tennessee

Nashville

Nashville is the largest metro area in Tennessee. The average cost of a skilled nursing facility runs $7,528 a month. The cost of an Assisted Living Facilityaverages $4,500 a month. Adult Day Care Centers average $1,408 a month. Care at home, based on a 44-hour week, averages $3,804 a month.

Memphis

Memphis is the second largest metro area in the State of Tennessee. The area includes areas in Arkansas and Mississippi. The average cost of a skilled nursing facility runs $7,148 a month. The cost of an Assisted Living Facilityaverages $3,585 a month. Adult Day Care Centers average $1,452 a month. Care at home, based on a 44-hour week, averages $3,432 a month.

More Location

Other major population centers include Knoxville, Chattanooga, Kingsport, Bristol, and Johnston City.