The news will not surprise our blog followers: The cost of long-term care is continuing its seemingly unstoppable climb. The 2024 Genworth/Care Scout Cost of Care Survey was just released, and the numbers demonstrate why advance planning for this extraordinary expense should be a part of every middle class family’s planning.
Before we tell you about the survey numbers, here is some key information about long-term care.
What Is Long-Term Care?
The first thing to know is that Medicare does not cover long-term care.
Long-term care is not designed to improve the functioning of a person who is cognitively or physically impaired. It simply provides help with activities of daily living that a person cannot manage on his/her own. Examples of activities of daily living are bathing, dressing, toileting, etc. This type of care can be provided in the home, a long-term care nursing facility, a memory care facility, or in an assisted living arrangement.
An aging population is rapidly increasing the demand for long-term care: By the year 2030, all Baby Boomers will be age 65 or older, and statistics show that about half of all people over age 65 will need long-term care at some point. At the same time, more restrictive immigration policies are negatively impacting an already bleak staffing situation. According to a 2023 American Community Survey, 21% of the staff in nursing homes are immigrants; a study by the Bureau of Labor Statistics reveals that 40% of home health aides are foreign born.
What Are Your Options to Prepare For Long-Term Care Expenses?
If you are wealthy, paying for long-term care is no problem. And if you are poor, you can count on Medicaid to pick up the tab – at least currently.
No such solutions exist if you are middle class; your nest egg will be quickly decimated by long-term care costs. The federal government has shown no appetite for helping citizens cope with this growing threat to their financial security. If you are a middle class person, options to protect your savings are limited:
- Your family provides for your long-term care needs on an unpaid basis. Obviously this is not going to work for many people.
- Purchase long-term care insurance. This is a possibility only if you are still in good health. Premiums are expensive, but a portion may be tax deductible. You can learn more about this insurance here.
- Do Medicaid planning. Our law firm can often help someone access Medicaid benefits without spending down or going broke. We can help people who are in crisis and imminently facing long-term care costs, or already admitted to a nursing home. Read more about Medicaid benefits for long-term care here. You can also plan in advance by having us set up a Medicaid Asset Trust for you. Learn about the Medicaid Asset Trust here.
- Veterans benefits may also be available for elderly and disabled veterans and their widows. Learn more about veterans benefits here.
And Now, The New Numbers
The annual cost of care survey by Genworth/CareScout offers insight into the trends of long-term care costs. In 2024, the increase in cost for all types of long-term care outpaced inflation. Here are the annual median costs in the State of Florida for 2024:
- Homemaker (cleaning and cooking, not health care), based on 44 hours/week: $68,640
- Home Health Aide, based on 44 hours/week: $68,640
- Semi-private room in a nursing home: $124,100
- Private room in a nursing home: $138,700
Click here to read the survey. The survey includes an interactive map that enables you to find the cost of each type of care in different states and localities.
If you want to protect yourself from long-term care expenses, call the attorneys at The Karp Law Firm. We can assist you with Medicaid planning and veterans benefits. We can also refer you to someone who can advise you about long-term care insurance. Call 561-625-1100.
