🧭 Overview
Long-term care is one of the most significant financial risks facing Maryland residents, and one of the least planned for. This page brings together the numbers that matter: what care actually costs in Maryland, how many people are currently protected by long-term care insurance (LTCI), what the state offers in tax incentives, and what Medicaid will and won't cover.
💰 The Cost of Long-Term Care in Maryland
These figures track real rates paid by families in Maryland last year.
| Care Setting | Annual Cost | Monthly Cost | National Rank |
|---|---|---|---|
| In-Home Non-Medical Caregiver | $80,080 | $6,673 | #26 of 50 |
| Assisted Living Facility | $86,070 | $7,172 | #12 of 50 |
| Nursing Home: Private Room | $173,375 | $14,448 | #12 of 50 |
Source: CareScout Cost of Care Survey
Maryland ranks #26 out of 50 states for in-home care costs, near the national median for in-home care costs. For a couple in their mid-60s planning for the future, a two-to-three year care event could easily consume $327,265 or more, funds that would otherwise go to a surviving spouse, children, or retirement income.
📊 How Long-Term Care Insurance is Used in Maryland
Maryland has 181,579 residents currently covered by long-term care insurance policies, at a moderate level compared to the national average. Most recently, LTCI paid out $436,897,200 to 1,949 Maryland claimants, with an average payout of $224,165 per claimant.
💸 Maryland State Tax Incentives for LTCI Premiums
Maryland offers a state income tax incentive for qualifying LTCI premiums. Details below.
Benefit type: Credit & Deduction
EMPLOYER CREDIT: Up to 5% of costs incurred providing LTC insurance as an employee benefit, not to exceed $5,000 or $100 per employee covered. INDIVIDUAL CREDIT: 100% of eligible federally qualified LTC insurance premiums for the individual, spouse, parent, stepparent, child, or stepchild, not to exceed $500 per insured. DEDUCTION: Permits the same tax deduction as is allowed for federal income tax purposes.
Statutory reference: Md. Code Tax-Gen. §§10-107, 10-203, 10-710, 10-718
Source: AHIP
🤝 Maryland LTC Partnership Program
Maryland participates in the Long-Term Care Partnership Program, a joint federal-state initiative that lets policyholders protect assets equal to the benefits paid out by a qualifying LTCI policy before Medicaid applies a spend-down. In practical terms, a policy that pays $300,000 in benefits allows you to protect an additional $300,000 in assets while still qualifying for Medicaid coverage. This makes partnership-certified policies especially powerful for middle-income families in Maryland who want Medicaid as a backstop without spending down to near-zero.
🏥 Medicaid and Long-Term Care in Maryland
Medicaid is the payer of last resort for long-term care, but qualifying requires spending down most of your assets first. Here are Maryland's current Medicaid thresholds:
| Threshold | Amount |
|---|---|
| Medicaid Spend-Down (individual asset limit) | $2,500 |
| Community Spouse: Minimum Asset Allowance | $32,532 |
| Community Spouse: Maximum Asset Allowance | $162,660 |
| Minimum Monthly Income Allowance (spouse) | $2,643 |
In Maryland, an individual must spend down assets to $2,500 before qualifying for Medicaid long-term care coverage. A community spouse may retain between $32,532 and $162,660. Because Maryland participates in the LTC Partnership Program, a qualifying policy can effectively raise the protected asset amount by the total benefits paid, a significant planning advantage for couples with moderate assets.
🏠 For Maryland Residents: Is LTCI Right for You?
Long-term care insurance isn't right for everyone, but for most middle- and upper-middle-income families in Maryland, it is the most efficient way to protect assets, preserve choices, and avoid placing a financial burden on family members. At current Maryland care costs, even a modest policy with a $150–$200/day benefit and a three-year benefit period could offset hundreds of thousands of dollars in out-of-pocket exposure.
Most people apply in their 50s or 60s, when they're more likely to qualify in good health and lock in lower premiums.
💼 For Financial Advisors and CPAs in Maryland
Long-term care planning intersects directly with retirement income planning, estate planning, and tax strategy, three areas your clients rely on you to coordinate. The data on this page (care costs, LTCI claims history, tax incentives, Medicaid thresholds) gives you and your clients a factual foundation for the conversation.
If you work with clients in Maryland and want help with quotes, a quick health pre-screen, or a partner for long-term care planning, connect with Jesse.
This page is updated annually. Data reflects the most recent available surveys as of 2025–2026. For current personalized quotes or benefit design questions, contact us.