The costs of long term care are steadily increasing, but there are options to pay for it. Public programs, private or family support, some forms of insurance and self funding are all ways to fund long term care. If none of those are viable for you, there is also long term care insurance.
$92,378.00 — The median annual rate for a private nursing home room in 2016.3
$25.00 — The median hourly rate in 2016 for a home health aide.4
At 8 hours a day, 7 days a week, that expense could reach $72,800.00 annually.
Five categories of funding options for long term care are listed below. It’s important to consider these options early on, while there is still time to be flexible with your decisions. Whether you plan to stay home for care or your journey takes you to an assisted living or nursing home location there are options.
Public Programs — Medicare can help pay for some long term care expenses and many people think that it will cover all of their long term care needs. Generally, Medicare will not pay for services for chronic conditions that require ongoing care.
Private or Family Support — Your family or loved ones could provide long-term care. However, you should consider the numerous physical, financial, emotional and geographic circumstances that may have a significant impact on caregivers and their families.
Other forms of insurance — Generally, disability insurance replaces lost income to cover basic living expenses like rent, food, and clothing. Health insurance covers part of the cost for hospital stays, prescription drugs, and doctor’s visits but it will not help with the cost of long-term care services associated with the activities of daily living such as bathing, using the restroom, dressing, walking or even feeding yourself.
Self-funding — While decades of savings may help you accumulate money to pay for long-term care, you may not have decades to save before an event occurs. Saving for long-term care may provide flexibility, but saving enough to cover long-term care expenses may be more difficult than you think.
Long Term Care Insurance — Long term care insurance may give you the option to have a voice in the care you receive.3 Genworth, Cost of Care Survey 2016
4 Genworth, Cost of Care Survey 2016 Check out our Costs Calculator