How costly are Long-Term Care Services?

Today, the national average cost of nursing home care is about $50,000, or $137 per day for total costs, including room and board, drugs and medical supplies.(4) Costs are currently are $110,000+ per year in parts of Alaska and California. Costs are expected to triple in the next 20 years, and will be almost $275,000 year in 30 years ($550,000 per year in High Cost Areas).(4) At present, Home care averages more than $12,000 per year.(5) In some areas of the country, these costs are much higher.

If no provisions have been made to pay for these high expenses, the results could be devastating. Since premiums can increase with age, the cost of waiting to purchase coverage can be very high. As a result, there is no better time than the present to plan for long-term care. One lengthy period of long-term care could wipe out everything you’ve worked a lifetime to build.

4. Health Care Financing Administration, 1998 statistics
5. Guide to Long-Term Care Insurance, published by The Health Association of America, 1996/1997.