In recent years, the cost of nursing home care has been a topic of concern for many families. With an aging population, it's natural to wonder if the financial burden of long-term care is increasing. At Vick Law, P.C., we understand the worries that come with these rising costs and the importance of planning for your future. Today we'll discuss the trends surrounding nursing home expenses, how they impact seniors and their families, and the role estate planning can play in alleviating the financial strain.
Nursing Home Cost on the Rise?
Figures from a Bureau of Labor Statistics (BLS) report published recently showed that the growth in the price of nursing homes and adult care has been especially volatile this year, reports Kiplinger’s recent article entitled, “Nursing Home Costs Soared in July.” The national average cost of nursing homes rarely declines. The cost declined for just five months in the last quarter century (the months between 1997 and 2022). Therefore, it’s surprising to see three months of decline in 2023 (April, May, and June). Nonetheless, the total 1.2% percent dip in those three months was more than offset by the 2.4% cost increase in July.
Nursing home and adult care is very expensive. Most people spend over $7,000 in out-of-pocket costs yearly. This high cost is likely due to several factors, and the increased demand from a rapidly aging population, inflation and a shortage of qualified nurses top the list. However, there is some good news: the U.S. Government plans to direct more funding to support the nursing workforce, though the effect of the program will take time to show up in the preparedness and availability of nurses.
For most active, middle-aged people, it’s hard to imagine that you might need significant nursing care one day. However, research shows that 70% of adults who survive to age 65 need at least some long-term support before they die, and 48% receive some paid care, according to a study by The Urban Institute.
Did you know the typical annual cost of a nursing home ranges from $59,495 for a shared room in Louisiana to a yearly cost of $380,000 in parts of Alaska? While Medicare may cover some expenses, partnering with a professional is wise to get your long-term care planning on the right track. If you have children, you'll be doing them an enormous favor.
The escalating costs of nursing home care are not isolated incidents; they are symptoms of a broader demographic shift. As the senior population grows, so does the demand for long-term care services, driving up expenses. The result is often a substantial financial burden on seniors and their families, leaving them with the daunting task of financing these services while protecting their assets and legacies.
The Role of Long-Term Care Planning
Long-term care planning is not solely about healthcare; it's a comprehensive strategy designed to ensure your financial security, protect your assets, and provide for your family's future. It involves making informed decisions about how to structure your assets to maintain Medicaid eligibility, all while preserving your wealth for future generations. At Vick Law, P.C., we have experience to guide you through the maze of long-term care planning. We understand the intricacies of Medicaid planning, the nuances of asset protection, and the various options available to you. Our team will work with you to create a customized strategy that safeguards your assets, secures your legacy, and ensures you receive the care you need.
Vick Law, P.C. Can Help
The rising costs of nursing home care are indeed a cause for concern, but they need not be a source of anxiety. With the right approach to long-term care planning and the guidance of experienced professionals, you can protect your financial future and ensure your loved ones are well cared for. At Vick Law, P.C., we are here to navigate this journey with you, offering tailored solutions to safeguard your assets and provide peace of mind. Don't let the increasing cost of nursing homes overshadow your golden years—let's work together to ensure they shine as brightly as possible. Contact us today and begin securing your financial future. Contact us today, and let's explore the solutions that can make a world of difference for your future.
Reference: Kiplinger (Aug. 16, 2023) “Nursing Home Costs Soared in July”
