What Does LTC Cost? The cost of nursing facility care can range from $30,000 to over $80,000 a year depending upon geographic local. The average nationwide cost is approaching $40,000. Most nursing facility care is "custodial" in nature and not covered by Medicare or Medicare Supplements. Today, the average length of a stay in a nursing home for custodial care is about 2.5 years. At $40,000 per year, that’s $100,000! While some may only stay for a few days or weeks, many people will require care for months and sometimes years. Those with Alzheimer’s or other cognitive disorders may remain in a nursing facility for the rest of their life. Although some people must be cared for in a nursing facility, the majority would prefer to remain at home: a 1992 article in Financial Planning stated that for every person in a nursing home, there are about 5 others who are receiving care at home or in community settings such as an assisted living facility or adult day care center. Today, the trend towards home and community care is growing very rapidly. Because of the increased demand for this type of care, some LTC industry experts now believe the use of nursing care facilities may decline over time. The cost of home care varies according to the type of care required -- household work, shopping, assisting with basic activities of daily living (ADLs); bathing, dressing, etc. Home health aide visits average $50 to $60 -- an eight hour stay will average $70 to $90. Professional care can run into many thousands of dollars, and full time live-in care can cost $50,000 or more per year. Assisted living facilities offer full-time care which is usually limited to assistance with activities of daily living and some medical care. Although residents usually live in an apartment, many facilities are similar to a residence and therefore have homelike surroundings. Average cost is around $18,500 per year, depending on the facility, location and amount of services available. The use of adult day care centers can provide much needed relief for those caring for a parent or other family member, especially if the caregiver is also employed. Costs for employed people who use these facilities to care for a dependent adult run about $15,000 or more a year. 80% of disabled persons are cared for at home or in adult day care centers. 72% of the caregivers are family or friends. Daughters and daughters-in-law provide the majority of care for those who are cared for at home; other female relatives and female friends usually provide the balance of such care, which is generally help with activities of daily living. Since most of the elderly are cared for by their children, especially their daughters, increased participation of women in the work force means that unless they give up their jobs, fewer women will have time to care for their aging parents. In addition, with later marriages and the delay in starting their own families, baby boomers have become the "Sandwich Generation," -- caring for their children, themselves, their parents, and often their grandparents as well. Looking to the future, with a lower birth rate, high divorce rate, and falling remarriage rate, many Americans may be single, and possibly childless, when they need care later in life. The family support system will not be there for them. Having a good long-term care insurance policy may be their only option.
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