24 Feb The Rising Cost of Long-Term Care
According to the Genworth Cost of Care Survey, the 2023 median national cost for a semi-private room in skilled nursing care was $7,908 and for a private room, it is $9,034. In the Gainesville area, it is higher! Having just checked with a few facilities, it is as high as $472 a day or over $14,000 a month for a private room/studio. That equals $168,000 a year. There are less expensive options locally.
Assisted living costs a bit less but still runs about $6-7,000+ a month in Gainesville. This of course does not include prescriptions, additional supply costs that facilities charge, or any other expenses that increase this amount!
Who can really afford this? How many of you have prepared for these kinds of costs? And consider that these costs are going up about 5-7% a year! If you visit the Genworth website, they have a cost calculator for every state, by zip code, for all levels of care, including home care. They also have a future cost calculator so you can see what projected costs will be well into the future! You better be sitting down when you look at this! Here is the link:
https://www.genworth.com/aging-and-you/finances/cost-of-care.html
A person turning 65 years old today has a 75% chance of needing some type of long-term care. This could be home care, or facility care by the way. On average, women will need 3.7 years of some type of long-term care and men will need 2.2 years of care according to the US Department of Health and Human Services. Knowing this, what can you do to be more prepared financially?
What about Medicare?
I am going to assume you all know that Medicare only pays for short stays in skilled nursing facilities for rehabilitation or therapy services after a hospital stay. It will not pay for long-term on-going care, either in skilled care or assisted living. The amounts I quoted above are mostly paid out of your pocket, unless you have a great long term care insurance plan, a hybrid insurance plan, or a long-term care annuity of some kind. Maybe you even have a “HSA,” or health savings account?
What about Medicaid? Would you Qualify?
Medicaid—the joint state and federal health care program—will cover the cost of long-term care at home and in skilled nursing facilities and is currently the primary payer in the nation for long-term care services. And yes, there are income limitations and asset limitations and “look backs.”
Many families simply assume they would never qualify for Medicaid and dismiss this as an option. They think they have to impoverish themselves, or sell their home, or try and give away assets to qualify. And many people worry about leaving their spouse with nothing to live on!
What if I told you that your home could be worth over $700,000 and you might qualify? Or that the allowable “community spouse resource allowance” in 2024 is $154,140.00? Or that you could have what is known as a “minimum, monthly maintenance needs allowance” that can go as high as $3,854 a month? I throw out these figures to get your attention.
Educate yourself now before a crisis!
Please, do not make assumptions! Don’t make critical financial decisions based on lack of real knowledge. Elder Law attorneys and certified Medicaid advisors can help determine if you could qualify for Medicaid. There are safe and legal ways to protect your assets for yourself, your spouse, and your family. Many families utilize what is known as a Qualified Income Trust that allows them to pay for what they can, protect some assets, and still qualify for Medicaid.
With costs running well over$100,000 a year for many types of care, now is the time to educate yourself on your options. Gainesville has many board-certified Elder Law attorneys who can work with you years ahead of the need to make sure you really are prepared for the cost of long-term care. Don’t assume you won’t be in the 75% of people over 65 needing care!
Upcoming Webinars:
Star Bradbury and Minerva Santiago, Elder Law Attorney:
Series: February 29th, March 7th, March 14th from 3-4pm
Topic: “How to Make a Plan for Quality Aging.”
Facebook Live Event: here is the Link: https://fb.me/e/1AbQkF3bB
Or go the website and signup: https://www.legallyremote.com/
Star Bradbury and Shannon Miller, Elder Law Attorney
April 10th and May10, 11am-12noon.
April Topic: “How to Find the Best Homecare.”
Call 352-379-1900 to Register for Zoom Link.
Star Bradbury
Senior Living Strategies
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