Minnesota's Long Term Care costs differ from many other states in that Assisted Living is considerably less than the more-desirable Home Health Care setting. Of course, without a crystal ball, it's impossible to know which setting of care you'll need, but these figures put the high cost of LTC services in Minnesota in perspective.
Recent claims statistics released by one of the major LTC insurance companies revealed that about 2/3 of claimants on Long Term Care Insurance policies start and end their care at home. This is a startling revelation that highlights the utility of planning ahead. While state Medicaid budgets may pay for home care, they often are prone to sudden rule changes, particularly targeting health care at home. Having a private policy puts more of the decision making process in your hands as a patient and as a family, and less in the hands of administrators and bureaucrats with a separate set of goals and priorities.
Given that home care is so important, and has a state average cost of nearly $58,000, or about $158/day, many policies sold in Minnesota have daily benefit amounts ranging from $130/day to as much as $250/day, with most people settling just under $200/day. All of this is in today's dollars, so we recommend considering inflation protection of at least 3% compounded if you expect to not make a claim for 15+ years. With the average buyer being aged 57 in Minnesota, there's a high probability you don't make a claim for 25-30 years, so inflation guard features are critical.
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