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Long term care is expensive and without careful planning can wipe out a
lifetime of savings is a short amount of time. The following are average costs based
upon the Genworth Financial 2005 Cost of Care Survey. Costs vary greatly by location,
with costs in the most expensive area as much as double that in the least expensive
area.
- $69,400 – the average cost of
a private room in a nursing home
- $30,300 – the average cost of
a private one-bedroom unit in an assisted living facility
- $27,726 – the annual cost of a
home health aid for 4 hours per day at the average rate of $18.58 per hour
Financial costs are not the only consideration. The emotional cost and strain on
family and friends involved in providing long term care should not be underestimated.
Caring for a parent or spouse is difficult. And over time the stress can affect
the caregivers own health. Even the care receivers can be affected emotionally,
as they may fell guilty for being the “cause” of their caregivers stress yet feel
helpless to reduce it.
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In recent years, the cost of nursing homes and assisted living facilities
has been rising at 5% to 6% per year. Most experts estimate the costs will continue
to rise at similar rates in the future. A 5% per year increase in costs means that
costs will double within 15 years, driving the average cost of one year stay in
a nursing home to $138,000. See Long Term Care costs in your state.
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Long term care is paid for in different ways. Much of it is paid for through personal
resources including savings and private insurance. Medicaid pays are large share
for those who qualify. Generally speaking, Medicare and Medicare supplement insurance
and private health insurance do not provide coverage for long term care expenses.
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