Long-Term Care Insurance

What Long-Term Care Costs Now

The national median rate for a private room in a nursing home rose more than 4% last year, to $240 per day.

How much does care in a nursing home cost? Does home care cost less?

Long-term-care insurer Genworth just came out with its annual cost of care study, which found that the national median rate for a private room in a nursing home is $240 per day ($87,600 per year). That’s a 4.35% increase over 2013. But the cost varies a lot by location. For example, it’s $91,615 per year in Florida and $104,025 in California, but $65,700 in Texas and $59,860 in Missouri. If you’re estimating costs for your future – or looking for care for a parent –compare costs for all the cities where you (or your parent) would consider living. See Genworth's interactive map to compare costs across the country.

Home care costs more per hour than a nursing home, but if you don’t need round-the-clock care, it could cost less overall. The national median rate for a home-health aide is $20 per hour, which is a 1.59% increase from last year. If you needed, say, 44 hours of care per week, the median cost would be more than $45,000 per year. Assisted living has a median cost of $3,500 per month ($42,000 per year), which is a 1.45% increase over last year, according to Genworth.

Long-term-care insurance can cover all of these types of care, but the policies have been getting a lot more expensive. Many people now buy policies that fill in the gap between the estimated cost of care (a typical long-term-care claim is about three years) and the amount they can afford to pay out of savings. For more information about calculating how much coverage to get and which policy features to choose, see Options for Covering Long-Term-Care Costs. Also see our Long-Term-Care Special Report.

For help finding a nursing home or assisted living facility, see Choose the Right Long-Term-Care Facility for Your Parents.

Most Popular

3 Dated Rules of Thumb Retirees Should Think Twice About
investing

3 Dated Rules of Thumb Retirees Should Think Twice About

The tried-and-true investing and saving rules of thumb retirees depend on may no longer be as reliable as they hoped. Don’t let dated “rules” steer yo…
August 11, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Are You Rich?
personal finance

Are You Rich?

You might be surprised. It depends on how you measure it, and the bar is changing.
August 12, 2022

Recommended

Long-Term Care: Other Coverage You May Want to Consider
Long-Term Care Insurance

Long-Term Care: Other Coverage You May Want to Consider

A third of applicants are rejected from buying long-term care insurance. Here are some smart alternatives.
June 7, 2022
Long-Term Care Insurance Premiums Rising, Benefits Shrinking
Long-Term Care Insurance

Long-Term Care Insurance Premiums Rising, Benefits Shrinking

There's a 70% chance you'll need some type of long-term care. Getting the right insurance is more complex these days. Here's some guidance.
June 2, 2022
Short-Term Insurance Plans' Good, Bad and Ugly
retirement

Short-Term Insurance Plans' Good, Bad and Ugly

You'll need a clear-eyed analysis to gauge the value of short-term care insurance plans and if they're right for you.
May 26, 2022
7 Things Medicare Doesn’t Cover
Healthy Living on a Budget

7 Things Medicare Doesn’t Cover

Medicare Part A and Part B leave some pretty significant gaps in your health-care coverage. But Medicare Advantage has problems, too.
May 4, 2022