Why You Should Plan Ahead for Nursing Home Costs
No one wants to think about living in a nursing home when they get older. However, the chances of that happening may be higher than you think. A RAND Corporation study found 56 percent of people between the ages of 57 and 61 will spend at least one night in a nursing home at some time in their life. That’s an increase from the 35 percent estimate in previous studies.
Nursing homes and other forms of long-term care are expensive. You can help avoid a financial crisis, or placing a large financial burden on your children, by planning now.
Who Pays for Long-Term Care?
Your private health insurance or Medicare will usually cover only certain types of long-term care and the coverage is limited. Disability insurance doesn’t cover it at all. You can use Medicaid for long-term care, but you have to be eligible according to your state’s rules. Also, your income and assets have to be under a certain amount, which varies by state.
Otherwise, you are on your own to come up with the very high price of long-term care unless you plan ahead and buy long-term care insurance.
How Much Does Long-Term Care Cost?
Long-term care is very expensive. The average cost in the United States for a private room in a nursing home is $8,365 per month. For a semi-private room, it’s $7,441. The average monthly cost of a home health aide is $4,115 and adult day-health care is $1,560.
The average cost of long-term care insurance is $225 per month, depending on how old you are when you buy the policy.
When Should You Buy Long-Term Care Insurance?
If you are going to buy long-term care insurance, don’t wait too long. The older you are, the higher the cost of the premiums. If you are over 75, you are probably not going to be able to get the insurance at all. You may also need to use long-term care earlier than you think. The average age of long-term-care users was only 66, according to a recent study.
According to the director of the American Association for Long-Term Care Insurance, the best age to start applying for long-term care insurance is between 55 and 65.
Plan Ahead with a Nursing Home Lawyer
In the future, if you ever need to talk to a nursing home lawyer, we would be glad to help. Call us at the law firm of Garcia & Artigliere at (800) 328-2630 for a free consultation.