We can understand why you’re worried about how you’ll pay for nursing home care. After all, the cost of nursing home care is over $12,000 per month and it continues to rise. Yes, you read that number correctly.
Here are some key statistics you need to know:
1. According to the Genworth Cost of Care Survey, the monthly fee for nursing home care in the Boston area is currently $13,383 (semi private) and $14,509 (private room). These costs will continue to rise. In 2030, it is expected to be $17,986 (semi-private room) and $19,499 (private room) per month.
2. The average length of stay in a nursing home is 2.6 years for women and 2.3 years for men (12% of people are in nursing homes for five years or more!). Without proper planning now, it could easily cost your family $500,000 or more for your future care. (American Association for Long Term Care Insurance LTCI sourcebook)
The Bad News:
Nursing Home care is not covered by health insurance or Medicare. People end up paying for their care themselves. It’s not uncommon for a person’s hard-earned assets to be depleted in just a matter of a few months. What they planned to leave to their children is now gone. We’ve seen it too many times.
The Good News:
These disastrous financial consequences can be avoided with some planning. There are a few options, but regardless of what planning route you use, acting early is the key to being able to protect. Planning ahead can save your assets but failure to plan ahead can cost you money.
Why do I have to worry about this now?
Currently, there is a five-year lookback period (sometimes called a “disqualification period”) that Medicaid uses, which means that any transfers of assets made within five years of applying for Medicaid are scrutinized and may disqualifying you for benefits you would have otherwise been entitled to receive. Because of this, long-term care planning is something that anyone over the age of 65 must consider.
“If you fail to plan, you are planning to fail.” -Benjamin Franklin
Failing to plan for the rising cost of a nursing home is one way to quickly lose your assets, but it can be prevented. How? Download our free report.