Average Cost of a Nursing Home

HINT: It's A Lot

The average cost of a nursing home might give you a painful case of sticker shock but there may be alternatives. Don’t flip out just yet.

According to AARP, at least 90 percent of retirees want to live at home for as long as they can so finding ways to avoid the nursing home, is the best option as long as their safety isn’t compromised and probably saves a lot of money in the process. It’s difficult to estimate the cost of in-home care but if you use an average hourly rate of $20 per hour and 20 hours per week were needed, that’s around $21,000 per year—much lower than nursing home care. And Medicare will pay some of these costs so the out of pocket cost will be lower.

Another option related to living at home is adult daycare. Adult day care is much like assisted living but the retiree still lives at home and spends the either the day or a portion of the day at a care facility. Average rates vary from state to state but the national average is $70 per day. At 5 days per week the cost would come in at $18,200 per year.

Unfortunately, Medicare doesn’t pay for adult daycare, but Medicaid may be an option.

There are other programs that help those choosing to live at home. Meals on wheels, community senior centers, help with shopping and transportation, and free legal services are probably available in your community.

Accessory Dwelling Units

An , sometimes known as a mother in law suite, is an area of a home that functions like an apparent. It often has its own bathroom, kitchen, and separate living and sleeping areas so the person can still keep their independence while being under the watchful eye of a loved one.

The cost of remodeling or adding on to a home might be cost prohibitive but if the home already has useable space, the cost of remodeling might be much lower than the cost of an assisted living facility for multiple years. This option can cause disruption to the family, especially if dementia or another illness is involved. Families are encouraged to get help and be ready to move the person into skilled care before the impact on the family becomes to high.

Assisted Living

Assisted living is for people who are mostly independent but may need help with personal care tasks. They’re probably still mobile but live in a fully staffed facility with a private or semi-private room.

There’s no universal definition for an assisted living center so each might offer different services but the price difference of assisted living versus a nursing home is substantial. Prices vary by area with state averages ranging from $2,500 to $6,000. At a national average of $3,600 monthly, the annual cost comes in at $43,200.

Beware: Medicare does not pay for assisted living services. If you or your loved doesn’t have the money to pay for assisted living services, apply for Medicaid—the only government sponsored program that pays for assisted living. If you have long-term care insurance that will pay a portion of the costs based on your policy.

Nursing Home

If you’ve exhausted all other alternatives, or your loved one needs specialized care for dementia or other conditions, a nursing home may be the best arrangement. A nursing home provides 24/7 medical care along with rehabilitation, socialization and housekeeping. Because the care is specialized it comes at a much higher price than other options. The average yearly cost of a semi-private room is $82,128 and a private room is $92,376. Many facilities charge an all-inclusive rate but some will have a more all a carte model.

Make sure to ask as you’re getting rate information.

Much like assisted living and other resident programs, Medicare probably will not cover the costs but any out of pocket expenses are often tax deductible if paid by somebody else on the resident’s behalf.

For people who don’t have the funds to pay for nursing home care, some health insurance, long-term care insurance, and life insurance policies can be tapped to cover costs.

Medicaid will pay for care if you meet the low income requirements but that may require you to spend down your assets to meet those qualifications.

If you’re a veteran, you will enjoy full coverage from the VA at certain locations approved by the VA.