Texas Long-Term Care

Important State Information

Federal Partnership Program

The State of Texas participates in the federal/state long-term care partnership program. The program, authorized by the federal Deficit Reduction Act of 2005 (DRA) and signed into law by President George W. Bush, gives the states the ability to provide additional asset protection to those who purchase qualified long-term care insurance policies.

The Texas Long-Term Care Insurance Partnership is a collaborative effort between private long-term care insurance providers, their authorized agents, and state government agencies. These agencies include but are not limited to the Texas Department of Insurance, the Texas Health and Human Services Commission, and the Texas Department of Aging and Disability Services.

Texas participates in the program as an incentive for Texans to plan for their long-term care needs. The partnership is a joint effort between private insurers and the state. Insurers must follow state and federal guidelines to sell partnership policies. Partnership policies have an “asset disregard” benefit, inflation protection, and tax-qualified status.

Policy Example

For example, if Texans exhaust the benefits in their qualified long-term care policies, they would have an equal amount of “asset disregard”. If the policy paid $350,000 in benefits, an individual would be able to protect that amount when calculating qualification for Medicaid long-term care benefits. The normal spend-down is $2,000 so the individual could keep $2,000 plus the $350,000 from the example and still be able to qualify for Medicaid benefits. 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 Texas. This means if you move from or to Texas, partnership asset protection follows you as well.

Medicaid

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 $3,160.50. *

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

Rate Stability Rules

In addition, Texas 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 Texas

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

Tax Incentives

Texas does not offer any state tax incentive for qualified long-term care insurance as there is no state income tax. However, federal tax incentives are 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.

Texas 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 $3,160.50
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Calculate the Cost of Care in Texas

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

Texas Median
Long-Term Care 2019 2034(+16 Years) 2019 2034(+16 Years)
Homemaker Services $47,133 $73,431(+$27,671) $43,315 $67,483(+$25,430)
Home Health Aide $47,133 $73,431(+$27,671) $44,776 $69,760(+$26,288)
Adult Day Care $9,373 $14,603(+$5,503) $7,632 $11,891(+$4,481)
Assisted Living Facility $46,906 $73,078(+$27,538) $47,802 $74,474(+$28,064)
Semi-Private Room $59,306 $92,397(+$34,818) $57,333 $89,323(+$33,660)
Private Room $80,829 $125,929(+$47,454) $80,829 $125,929(+$47,454)

Long-Term Care Throughout Texas

Dallas-Fort Worth

The Dallas-Fort Worth metro area is the largest in the State of Texas. This includes large population areas of Arlington, Plano, Irving, Garland, Grand Prairie, McKinney, Frisco, Mesquite, Carrollton, Denton, Richardson, and Lewisville.  The average cost of a skilled nursing facility runs $7,134 a month. The cost of an Assisted Living Facilityaverages $4,350 a month. Adult Day Care Centers average $1,408 a month. Care at home, based on a 44-hour week, averages $4,040 a month.

Houston

The Houston metro area is the second largest in Texas. The area includes The Woodlands, Sugar Land, Baytown, and Conroe. The average cost of a skilled nursing facility runs $6,996 a month. The cost of an Assisted Living Facilityaverages $3,863 a month. Adult Day Care Centers average $1,300 a month. Care at home, based on a 44-hour week, averages $4,099 a month.

San Antonio

The San Antonio metro is the third largest in Texas. This includes New Braunfels, Schertz, Seguin, and Cibolo. The average cost of a skilled nursing facility runs $6,083 a month. The cost of an Assisted Living Facilityaverages $3,975 a month. Adult Day Care Centers $867.00 a month. Care at home, based on a 44-hour week, averages $4,004 a month.

More Locations

There are many other population centers with significant population in Texas. These include Amarillo, Austin, Corpus Christi, El Paso, Laredo, and Lubbock to name a few.

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