Dec 16, 2024
Nursing homes aren’t popular in America. In fact, 70% of respondents to a West Health and Gallup poll in 2023 said they’d be uncomfortable ever being admitted to one and 61% reported they’d be uncomfortable putting a family member into such a facility.
Instead of going to a care facility, remaining at home is the ultimate goal for many aging Americans and their loved ones. But even if they’re able to avoid admittance to an institution, some may need care at home. And a report shows the cost of long-term care services have risen.
Care costs have grown
According to the Genworth’s Cost of Care Survey 2023, the cost of long-term care services increased across all provider types since the previous year’s edition. Increases in key services include:
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- Assisted living facilities: Rates increased 1.4% from 2022, up to a median $64,200 per year
- Home health aide: Includes “hands-on” assistance, such as bathing and dressing, up 10% to a median $75,500 per year
- Homemaker services: For “hands-off” tasks, such as cooking and cleaning, up 7.1% to a median $68,600 per year
- Skilled nursing facility: Cost of a semi-private room up 4.4% to a median $104,000 per year
- Nursing home: Cost of a private room up 4.9% to $116,800 per year
Survey participants reported inflation and a shortage of skilled workers as the top drivers of cost.
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Affording long-term care
Covering the costs of long-term care, whether at a facility or at home, can be a major financial burden for both affected individuals and their families.
The best way to prepare for this expense is to plan ahead for it. This could mean having dedicated savings in case care becomes necessary. Investing in long-term care insurance is an option, too, although it’s important to check policy terms by confirming both coverage and daily payment limits for home health aides.
Medicare doesn’t cover long-term care, but you might qualify for assistance under Medicaid. An estate planning attorney can work with you to make a Medicaid plan. When done in advance, this helps you preserve your assets while qualifying for Medicaid coverage for long-term care.
Veterans may also qualify for long-term care through Veterans Affairs.
For those whose needs are more immediate, working with a local agency or nonprofit organization can be helpful in finding trusted support. Your state may also connect you to resources if you’re struggling, and some even offer compensation to family caregivers, however, eligibility and funding may vary.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
