Plan for Long-Term Care in Hawaii
What does long-term care actually cost Hawaii families — and who pays for it?
70% of people turning 65 will need some form of long-term care. Medicare doesn't cover it. Medicaid requires you to spend down to $2,000 before it helps. And the family home is at risk unless someone looked at this before the crisis arrived.
That's the conversation NFH has with every family.
Hawaii long-term care costs — 2026
Maximum countable assets to qualify for Hawaii Medicaid long-term care in 2026. Spend-down is the reality without a plan.
$2,000
Average private nursing home room in Hawaii — $159,000 per year. Among the highest in the country.
73%
How much assisted living costs in Hawaii have increased since 2021. A plan built today needs to account for costs that keep rising.
13,250/mo
A semi-private nursing home room averages $11,960 per month in Hawaii
Assisted living runs $9,340 to $12,000 per month depending on location and level of care
Home health aide services cost approximately $33 per hour in Hawaii
Hawaii long-term care costs are 39.3% above the national average
The family home is protected from Medicaid spend-down up to $1,071,000 in equity — but is subject to Medicaid estate recovery after the recipient passes
Hawaii has the highest percentage of residents over age 85 of any state in the country
Sources: ElderCarePeek Hawaii 2026 · Genworth Cost of Care Survey · MedicaidLongTermCare.org Hawaii 2026 · U.S. Dept. of Health and Human Services
Want to know what a plan actually looks like for your situation?
What most Hawaii families don't know until it's too late.
Most people assume Medicare will cover long-term care. It won't. Here is what the reality actually looks like.
Medicare pays for rehabilitation. Not long-term care. After 100 days of skilled nursing following a qualifying hospital stay — Medicare pays nothing toward ongoing care. This is the single most common misunderstanding in retirement planning.
Medicaid requires you to spend down to almost nothing. $2,000 in countable assets. That means spending through your savings, investments, and retirement accounts before the state steps in. The family home is protected while you're living in it — but not after.
The family home is at risk after you're gone. Hawaii is an expanded estate recovery state. After a Medicaid recipient passes, the state can seek reimbursement from the estate — including assets that pass outside of probate. Without proper planning, the family home can be consumed by care costs even after you're gone.
Care costs have risen 73% since 2021 — and are still rising. A plan built on today's numbers may fall short in ten years. Long-term care planning needs to account for the Hawaii cost trajectory, not just the current rate.
We look at all of it together. So you have options before the crisis removes them.
— Gustavo Zabarain, New Found Horizon
"My mother needed care suddenly. We had no plan. Within months we were looking at her savings disappearing and the family home at risk. I called New Found Horizon because I didn't want that to happen to us."
— Kalani K., Kailua, Hawaii
The decisions that protect what you've built.
Medicare stops at 100 days.
After 100 days of skilled nursing — Medicare pays nothing toward ongoing care. Most families discover this when the bills arrive.
Medicaid spend-down is brutal.
To qualify for Hawaii Medicaid, a single applicant must have $2,000 or less in countable assets. Everything above that goes first.
The family home is at risk after you're gone.
Hawaii Medicaid can recover from your estate after you pass. Without a plan, the home your family was counting on may not survive.
Care on your island isn't guaranteed.
Hawaii has a documented shortage of long-term care beds, particularly on the neighbor islands. A plan that assumes care close to home may not hold.
Each one has a solution.
We coordinate all of them.
Long-term care insurance.
Premiums are significantly lower before a health event changes your eligibility. After a diagnosis, coverage may be unavailable. The time to plan is before you need it.
Life insurance with a long-term care rider.
One policy. Two protections. Care funding if you need it. Full death benefit if you don't. For families who need both coverages, this is often the most efficient structure.
Asset protection strategies.
Certain legal strategies can protect the family home and savings from Medicaid spend-down and estate recovery. These conversations belong before a health event — not during one.
Home care planning.
Most people prefer to stay home as long as possible. At $33 per hour for a home health aide in Hawaii, that preference has a real cost. Planning for home care is part of every well-coordinated plan.
How we work.
Discovery
We listen first. Your full picture before anything is recommended.
Clarification
We identify the gaps, risks, and decisions approaching that can't be undone.
Coordination
Medicare, income, protection, and legacy aligned as one plan.
Implementation
Every step guided. Nothing falls through the cracks.
Ongoing Stewardship
We're here when life changes. Because it always does.
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No. Medicare covers up to 100 days of skilled nursing care following a qualifying hospital stay — for rehabilitation purposes only, not ongoing long-term care. After those 100 days, Medicare pays nothing toward nursing home costs, assisted living, or home health aide services. This is the single most common and most expensive misunderstanding in retirement planning. Most Hawaii families discover it when the bills arrive — not before.
Understanding exactly what Medicare covers for your situation is one of the first things we walk through together.
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A private nursing home room in Hawaii averages $13,250 per month — $159,000 per year. A semi-private room averages $11,960 per month. Assisted living runs $9,340 to $12,000 per month depending on location and level of care. Home health aide services cost approximately $33 per hour. Hawaii long-term care costs are 39% above the national average — and have risen 73% since 2021. A plan built on today's numbers needs to account for a cost trajectory that keeps rising.
What care could realistically cost for your specific situation in Hawaii is one of the first things we calculate together.
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The family home is protected from Medicaid spend-down while you're living in it — up to $1,130,000 in home equity in 2026. But Hawaii is an expanded estate recovery state. After a Medicaid recipient passes, the state can seek reimbursement for what it paid for care from the estate — including assets held by the surviving spouse, in a life estate, or in a living trust. Without proper planning, the family home can be consumed by care costs even after you're gone. The state may look back 60 months before a Medicaid application for asset transfers made below fair market value.
Protecting the family home from Medicaid estate recovery requires planning before a health event — not after. That's exactly the conversation we have.
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Hawaii Medicaid — called Med-QUEST — covers nursing home care and some home and community-based services for eligible residents. To qualify in 2026, a single applicant must have $2,000 or less in countable assets and contribute nearly all monthly income toward care costs, keeping only $75 per month for personal needs. The family home, one vehicle, and personal belongings are generally exempt. Retirement accounts, savings, stocks, and most other investments are countable and must be spent down first. For married couples where only one spouse applies, the non-applicant spouse can keep up to $162,660 in assets and up to $4,066.50 per month in income.
Whether Medicaid could be part of your long-term care picture — and what protecting your assets before that point looks like — is something we look at as part of your whole picture.
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Before a health event changes your eligibility. Long-term care insurance premiums are significantly lower before a diagnosis — and after certain health conditions, coverage may be unavailable entirely. Hawaii's 60-month Medicaid look-back period means asset protection strategies need to be in place years before care is needed, not months. The families who preserve the most options are the ones who have this conversation while everything is calm — not when the crisis has already arrived.
Most people leave this conversation saying they wish they'd had it sooner. The window to plan well is shorter than most people realize.
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Long-term care insurance is a standalone policy dedicated to covering care costs — it pays a daily or monthly benefit when you meet the criteria for care. A long-term care rider is added to a permanent life insurance policy — if you need care, it pays the benefit early; if you don't, the full death benefit passes to your family. The rider addresses two significant financial risks with one premium and is generally more affordable for families who need both coverages. Hawaii does not participate in the federal long-term care partnership program, which makes private coverage options more important here than in most states.
Which structure belongs in your plan depends on your full picture. That conversation starts with listening.
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It depends on the condition and the type of coverage. Standalone long-term care insurance is medically underwritten — existing conditions affect eligibility and premium significantly. Guaranteed issue life insurance with long-term care riders may be available regardless of health status. This is exactly why this conversation belongs before a health event — the options available today may not be available after a diagnosis. We work with multiple carriers to find what's available for your specific health situation.
The earlier this conversation happens, the more options remain open. That's not a sales line — it's the reality of how underwriting works.
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Hawaii Medicaid has specific spousal impoverishment protections. The non-applicant spouse — the one still living at home — can keep up to $162,660 in assets as a Community Spouse Resource Allowance and up to $4,066.50 per month in income as a Monthly Maintenance Needs Allowance in 2026. The state will never require the living spouse to move out of the family home. However, after the Medicaid recipient passes, Hawaii's expanded estate recovery program can seek reimbursement from the estate — including assets that passed to the surviving spouse. Planning before either spouse needs care protects both.
Understanding what each spouse's financial picture looks like if one needs care is a conversation most couples haven't had. We walk through those numbers together.
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Hawaii enforces a 60-month — five year — look-back period for all long-term care Medicaid applications. This means the state reviews all asset transfers made in the 60 months before the application date. If assets were given away or sold below fair market value during that period, a penalty period of Medicaid ineligibility is applied. The penalty is calculated by dividing the value of transferred assets by the average monthly cost of nursing home care. The earlier asset protection strategies are implemented, the further outside the look-back window they fall.
This is one of the most important reasons long-term care planning belongs years before it's needed — not when care is already required.
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Yes — Hawaii has a well-documented shortage of long-term care facility beds, particularly on the neighbor islands. Serious specialized care may not be available on every island, and a plan that assumes care close to home may not hold in practice. The multigenerational family care structure that previous generations relied on is also changing — younger generations are leaving Hawaii because they can't afford to stay, meaning the informal safety net is less reliable than it once was. Having a financial plan for care is only part of the picture — knowing what care options actually exist on your island is the other part.
We work with Hawaii families specifically. The local reality of what care looks like here is part of every conversation we have.
Questions we hear most from Hawaii residents
Still have questions? Every family's situation is different.
That's exactly why the first conversation starts with us listening — not recommending.
Let's make sure you have a plan before you need one.
Here's what we look at together in your complimentary long-term care review:
What care would actually cost your family in Hawaii — not the national average, your situation
Whether Medicare covers what you think it does — most families are surprised
How to keep the family home out of Medicaid's reach — before a health event makes that conversation harder
What coverage would cost at your current age and health — versus what it costs after a diagnosis
Which options are still open to you right now — and which ones close permanently after a health event
Meet the team at New Found Horizon
We're an independent retirement coordination agency licensed across Hawaii. No carrier quotas. No product pushing. Before we recommend anything, we listen.
Our agents work exclusively with Hawaii families navigating the retirement transition — coordinating Medicare, income, protection, and legacy as one connected plan.
Want to know who you'll be working with?
Meet the team →
(808) 480-7219 · info@newfoundhorizon.com