The cost of nursing home stays and other long-term care has been steadily rising in the past few years. So much, in fact, that it’s no wonder that Americans are experiencing severe sticker shock.
According to a recent article in The New York Times, a 2013 report by Genworth Financial has found that the median daily cost of a private room in a nursing home increased 3.6 percent from 2012. The median cost today is $6,900. Want to save money by sharing a room? Don’t expect to save much: a shared room is only $27 cheaper. The report stated that Americans could pay more than $16,425 annually than they did in 2008.
The cost of an assisted living facility is less at $3,450 per month. This cost also increased from 2012, up 4.55 percent.
A home health aide can run $18-19 per hour.
With America’s population aging, the issue of paying for long-term care is a pressing one for lawmakers.
Unfortunately, long-term care is not something that a person can simply pass on. When you need it, you really need it—which leaves the question of how to pay for it.
Many Americans used to pay for long-term care with pensions or money obtained from selling their homes. But since the recession, pensions may be worth less, and the housing market has certainly seen better days.
If you can afford it, long-term care insurance can be tremendously beneficial. This type of insurance covers the cost of a nursing home, assisted living, and at-home care. You can read more about the benefits of long-term care insurance by reading my earlier blog post.
If you don’t have long-term care insurance, Medicaid planning can help you plan for the costs of a nursing home stay.
The Times also reports that those with life insurance policies may be able to sell the policy or convert the value of the policy to a long-term care policy in order to pay for long-term care.
Please feel free to contact my office if you have questions or concerns about paying for a future stay in a nursing home or assisted living facility.