Long Term Care: What it Could Cost.

Long Term Care: What it Could Cost.

It is important to be in the Know – especially when it comes to your long term care options and their expenses. Balance out the possible “what ifs” with knowledge of the facts.

Did you know…

• About 19 percent of Americans aged 65 and older experience some degree of chronic physical impairment. By the year 2020, 12 million older Americans will need long-term care.1

• The U.S. Government Accountability Office estimates that 40 percent of the 13 million people receiving long-term care services are between the ages of 18 and 64.1

• One year in a nursing home can average more than $80,000. In some regions, it can easily cost twice that amount.1

• Disability income insurance will not cover most long-term care expenses.

• People will need to spend almost all of their assets in order to qualify for Medicaid benefits.

About MediCARE

Medicare pays only about 12% for short-term skilled nursing home care following hospitalization. Medicare also pays for some skilled at-home care, but only for short-term unstable medical conditions and not for the ongoing assistance that many elderly, ill, or injured people need.1

About MediCAID

The federal program that provides health care coverage to lower-income Americans – pays almost half of all nursing home costs. Medicaid pays benefits either immediately, for people meeting federal poverty guidelines, or after nursing home residents exhaust their savings and become eligible. Turning to Medicaid once meant impoverishing the spouse who remained at home as well as the spouse confined to a nursing home. However, the law permits the at-home spouse to retain specified levels of assets and income. 1 For 2018, the Medicaid maximum resource allowance for married patients is $123,600 2

Any gifts of assets must occur at least 60 months prior to applying for Medicaid in order to meet the asset guidelines.

1 A Guide to Long-Term Care Insurance © Revised edition, 2003, 2004, 2012, 2013 America’s Health Insurance Plans.

2 2014 Centers for Medicare & Medicaid Services, Medicaid Eligibility Policy.

Long-Term Care Costs by State: Average Nursing Home Cost

STATE

Private/day

Semi-Private/day

Private/month

Semi-Private/month

National Average

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusettes

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

$253

206

816

255

193

307

267

440

326

275

203

387

244

205

252

200

185

230

169

297

311

395

269

266

217

173

228

211

284

338

367

238

373

245

354

240

165

294

320

315

217

214

207

195

210

293

244

295

286

280

242

$225

195

800

207

161

250

228

407

315

244

190

355

229

184

210

182

171

206

160

275

286

370

250

242

209

156

218

185

261

320

325

213

361

216

359

210

145

277

298

273

199

205

190

148

185

283

221

265

275

257

217

$7,698

6,266

24,820

7,756

5,862

9,338

8,129

13,383

9,901

8,365

6,175

11,776

7,407

6,235

7,665

6,083

5,627

6,981

5,139

9,019

9,444

12,015

8,182

8,086

6,586

5,264

6,935

6,403

8,648

10,281

11,153

7,229

11,330

7,452

10,773

7,300

5,019

8,943

9,733

9,581

6,596

6,509

6,310

5,931

6,388

8,897

7,422

8,973

8,699

8,517

7,375

$6,844

5,931

24,333

6,296

4,905

7,604

6,935

12,364

9,581

7,422

5,779

10,798

6,965

5,597

6,388

5,536

5,201

6,266

4,867

8,365

8,684

11,254

7,604

7,361

6,357

4,730

6,631

5,627

7,939

9,733

9,885

6,471

10,988

6,570

10,905

6,388

4,410

8,425

9,071

8,304

6,053

6,235

5,779

4,502

5,627

8,608

6,715

8,060

8,365

7,817

6,593

Take the first step toward achieving your financial goals.

Learn More: Long Term Care: Medicare

Read more about what Medicare is and how you can supplement it to successfully cover the costs of long term care.