Long-Term Care Costs on the Rise

Posted in Health Insurance

November 10th, 2009

A new study shows that long-term care costs are rising at a rapid pace. According to a MetLife Mature Market Institute study, the average cost of a private room in a nursing home has reached $219 per day, which equals roughly $80,000 per year.

That’s not all the report showed. Here is a breakdown of the costs seniors could expect if they need long-term care this year:

• $219 per day or $80,000 per year for a private room in a nursing home
• $3,131 per month for a private room in an assisted-living facility
• $21 per hour for a home health aide.

The report also revealed that prices could vary drastically depending on the state you live in. For instance, if you live in Alabama, the average cost for a private room in a nursing home is $171 per day, while in California, the same room might cost you $286. And if you live in Phoenix, you might pay $28 per day for a home health aide, while in Birmingham, Ala., your home health aide might cost you only $14.

Paying for Long-Term Care

If you think you or a family member may be on course with needing long-term care, there are options available to help you pay. You could purchase long-term care insurance that could pay for most or all of your long-term care needs. However, if you decide to go this route, keep in mind that there are decisions to be made along the way, including choosing between 10-years paid coverage or paying until you’re 65, as well thinking about a cash benefit.

Also, some seniors may be eligible for financial assistance through Medicare and Medicaid. While Medicare will only pay for long-term care costs if they are medically necessary, Medicaid may be of more assistance, but there are conditions (see more from U.S. Dept. of Health and Human Services).

There’s no doubt that paying for long-term care can be overwhelming. With costs rising quickly, it’s a good idea to look for ways to pay in case you need the help down the line.