Long-term care can be expensive. The cost depends on the amount and type of care you need and where you get it. Below are some average annual costs for care provided in a nursing home, in an assisted living facility and in your own home.
Nursing Home Costs In 2007, the national average cost of nursing home care was about $181 per day (for a semi-private room).1 This cost does not include items such as therapies and medications, which could make the cost much higher.
Assisted Living Facility Costs In 2007, assisted living facilities reported charging an average fee of $2,714 per month (for a one-bedroom unit), or $32,568 per year, including rent and most other fees. Some residents in the facilities may pay a lot more if their care needs are higher.
Home Care Costs In 2007, the national average cost of part-time basic home care (home health aide three times a week) averaged $16,000 per year. Skilled care provided by a nurse is more expensive than care provided by a home health aide. Annual costs for home health care will vary based on the number of days per week the caregiver visits, the type of care required and the length of each visit. Home health care can be expensive if round-the-clock care is required. These costs are different across the country. Your state insurance department or the insurance counseling program in your state may have costs for your area.
Who Pays For Long Term Care? People pay for long term care in a variety of ways. These include: using the personal resources of individuals or their families, long-term care insurance, and some assistance from Medicaid for those who qualify Medicare, Medicare supplement insurance, and the health insurance you may have at work usually will not pay for long term care.
Individual Personal Resources Individuals and their families generally pay for part or all of the costs of long term care from their own funds. Many use savings and investments. Some people sell assets, such as their homes, to pay for their long-term care needs.