Many people already know that the cost of nursing home or long term care in their older ages can be extremely high. The average cost of a nursing home in the United States can easily go above $70,000 a year, and according to a Georgetown University Medical Center study, this has risen even faster than the cost of overall medical care in some states.
The cost of putting a family member in a nursing home can be a significant financial burden even for those Americans who have set aside necessary retirement funds. But this can be a crushing and devastating challenge for those who have not set aside the appropriate money.
The expense of nursing home care is a particular concern for those people who do not have Medicaid coverage or long term care insurance. Annual out of pocket expenditures for a nursing home can go well beyond $70,000, and in certain states can be much higher. For a person who is not classified as qualified for Medicaid or doesn’t have LTC insurance, this financial burden can put pressure on loved ones as well.
According to the study, for-profit nursing home chains were the least expensive whereas non-profit were the most expensive. For-profit and non-profit facilities operated independently had similar costs. While the majority of Americans are eligible for Medicare at age 65, this doesn’t cover many important long term care costs. You need to have a long term care strategy set aside and partner with an experienced and knowledgeable estate planning attorney to discuss how this could affect your future.