The majority of older adults will need long-term care services at some point. But, caregiving costs for older adults are super high, stemming from significant labor and facility costs, along with high demand. If you need long-term care services, how will you get them?
More and more people are looking for adult day care, assisted living facility care and nursing home care. For many of them, relying on volunteer caregivers, such as friends and family, is not possible. But, the cost of paid care is prohibitive, swallowing up years of savings quicly. Caregiving costs increased more than 20 percent between 2012 and 2019 and continue to rise.
Medicare does not pay for long-term care services. At best, Medicare will cover 100 days in a rehab facility or nursing home for people who need daily skilled nursing or therapy services. And, most Medicare Advantage plans inappropriately deny coverage for rehab and nursing care beyond a few days.
But, a stay in a rehab or nursing facility can cost thousands of dollars if you have to pay out-of-pocket. The average cost of a nursing home stay is now more than $9,000 a month. The average cost of a stay in an assisted living facility is more than $4,500 a month.
Caregiving costs are a lot higher in some states than others. In Massachusetts, average costs for a nursing home stay can be more than $15,000 a month. An assisted living facility stay can cost well over $8,000 a month.
More than four in five households with someone over 65 need some type of care. Almost a quarter of them have significant care needs, including round the clock care. Almost two in five need help, though not round the clock. Only about one in five of them need minimal care, such as help getting groceries and cooking.
Here’s more from Just Care:
- Retirement Reboot: What you should know and how to plan ahead
- Social Security turns 88 today; it’s time to expand its benefits
- As the US population ages, how will people afford long-term care?
- Even with Medicare, you’ll spend a lot on health care
- Expand Social Security, don’t means test it
Why does itt cost so much? I have asked everyone and no one knows. Someone is making a ton of money!! The employees work for peanuts so it is not going to wages. They are all currently understaffed. I asked my Senator and she didn’t know. I would really appreciate an explanation.
Taxpayers are picking up the tab in many cases and they would like to know too.
Greed and supply and demand, I know it’s sad that some companies
think that overcharging sick people is “just doing business” and have no compassion for their fellow man.