How Much Does Long Term Care Cost?
[Updated May 2022]
Long term care looms in the future for most Americans. The cost of care is high, whether you rely on the goodwill of loved ones or seek professional care. Long term care is costly to the health, wellbeing, and lifestyle of family caregivers and costly financially when professional care is hired.
Caregiving for A Loved One
Most long term care is still provided at home by a loved one. Overall, 59% of care is unpaid. Family members providing long term care often pay a high personal price. Most informal caregivers are still working while providing for the safety and comfort of a family member. For many informal caregivers, the financial savings that the person recieving care recieves come at the cost of the caregiver's career, affecting the caregiver's income and retirement savings.
Beyond career concerns, a caregiver's relationships with their children and spouses can suffer. And the toll on health can last a lifetime. Many caregivers suffer from chronic stress, sleep deprivation and the ailments that those conditions can cause.
By being prepared for the financial costs long term care, you can help protect those closest to you from the burdens of being a caregiver. Even a small long term care insurance plan can provide much needed support for your loved ones, family members, and friends who may help care for you. Studies show that family caregivers that have adequate support and a positive perspective can feel fulfillment and satisfaction from taking care of those they love.
Average Cost of Long Term Care
Different types of long term care have very different costs. Depending on what type of care a person needs and where they live, the cost of long term care can rise.
- $297/day or $9,034/month for a private room in a nursing home
- $148/day or $4,500/month for a one-bedroom unit in assisted living
- $27.00/hour for a home health aide
Based on the national median prices, a year of care in 2021 would cost over $108,000 in a private nursing home room. Assisted Living (base cost) would have cost nearly $54,000 per year. And a year of care at home (40 hours/week) costs about $56,000. Like everything else, these costs are rising every year. Learn more about how the costs of long term care have been increasing since 2016 here.
Does Medicare Pay for Long Term Care?
No - in fact, Medicare.gov explicitly states “Medicare doesn’t cover long-term care (also called custodial care)”. While most home care is provided by unpaid caregivers like spouses and adult children, 42% of paid care was provided by Medicaid 2016 statistics.
What does that mean for you?
- Medicaid provides a safety net if everything “goes south”.
- Relying on Medicaid means
- Qualifying financially – Medicaid is designed to support those who can’t provide for themselves.
- Receiving care where Medicaid assigns you. Because of the overwhelming use of this combined state and federal government resource, approved facilities and services must provide care at low cost to the government. And care must be restricted to those in direst need. In other words, if long term care costs devastate your financial resources Medicaid has your back. But you sacrifice the ability to choose where and how you receive care. And let’s be real, most of us would rather sleep in our own beds, eat home cooking and spend our days in the familiar comfort of our own homes.
Next Steps:
Since most people over 65 will need long term care, planning ahead for long term care costs just makes sense. Although long term care insurance isn’t for everyone, it can be a powerful tool.
Take time to review your retirement savings plan for tips on how you can prepare for long term care costs. Book a no risk, no commitment complimentary review. You can research the cost of care in the area you plan to retire by clicking the link below.