The cost of long term care in all forms continues to increase, to no one’s surprise. The 2020 Genworth Cost of Care Survey was just released, revealing continuing cost increases in Florida as well as nationally. Costs in 2020 of course reflect the impact of the pandemic, as facilities and services face labor shortages, wage pressures and expenses related to personal protection equipment and other safeguards that were not needed in years past. The most expensive state for care is Alaska; the least, Missouri.
Below are key takeaways from the Genworth study:
MEDIAN ANNUAL COSTS
|
National 2020 |
National Increase from 2019 |
Florida 2020 |
Florida Increase from 2019 |
|
| Nursing Home, Private Room | $105,850 | 3.57% | $117,804 | 4.59% |
| Nursing Home, Semi Private Room | $93,075 | 3.24% | $104,025 | 1.42% |
| Assisted Living | $51,600 | 6.15% | $44,400 | 5.71% |
| Home Health Aide, 24/7 basis | $209,664 | 4.35% | $196,560 | 2.27% |
| Home Health Aide, 40 hrs/week | $49,920 | 4.35% | $46,800 | 2.27% |
As you can see, long-term care expenses will quickly take a wrecking ball to a middle class family’s financial security. Anyone considering estate planning should include planning that addresses these potential costs. According to the U.S. Department of Health and Human Services, someone turning 65 today has a 70% chance of needing long-term care at some point in their lives. Long-term care insurance remains a possibility, if you can qualify. There are also strategies you can put in place in advance that make it more likely that you can qualify for Medicaid benefits to cover the cost of a nursing home. Other strategies are available if a loved one is already residing in a nursing home and is paying privately. Certain veterans may also qualify for financial assistance.
Contact The Karp Law Firm for guidance. You can read the Genworth report here. It allows you to compare costs for all types of services both nationally and by state.
