According to the 2017 Genworth Cost of Care Survey, a widely used barometer for the industry, the median cost of adult day health care in the United States is $1,517 a month. It’s $3,750 for an assisted living facility, $3,994 for home care services and $4,099 for home health aides. And the median cost rises to $7,148 for a semiprivate room at a nursing home and $8,121 for a private room!
Those figures should give you pause. If you don’t address the possibility you’ll need some form of long-term care services — be it a home health aide, an assisted living facility or a nursing home — your entire life’s fortune can be wiped out in a relatively short period of time.
How can you avoid dire results? Medicaid isn’t a viable option for most people because of the relatively low state income thresholds. One alternative is to obtain long-term care (LTC) insurance through a reputable provider. But this isn’t as easy as it may at first seem.
LTC policies can vary widely depending on such factors as the insurer, area of the country and your health status. It’s important to find out what benefits will be provided and for how long. Also, check into the tax implications for your situation. Finally, your out-of-pocket cost is a major consideration.
If you’re interested in an LTC policy, act sooner rather than later because the cost of coverage generally rises with age. After you’ve investigated the options, you can make an informed decision with assistance from your advisor.