How Much Does Long Term Care Cost?

Aug 2, 2015 | Miscellaneous

We all hope to enjoy good health for the rest of our lives, but the reality is that many of us will suffer at least one major accident or illness as we grow older. If you need long term care at some point, you might assume that Medicare will pay for a nursing home or in-home nursing care. But unfortunately, that is seldom the case. Most senior citizens must find another way to pay for the care they require.

Just how much does long term care cost? Prices can vary greatly depending upon your geographic region, but the following statistics should give you some idea.

  • The cost of home care ranges from 15 dollars per hour (Montgomery, AL) to 24 dollars per hour (Hartford, Connecticut)
  • The national average cost of a home health aide who visits for six hours per day is $29,640. The cost could be much higher if you need more than six hours of help per day.
  • Nursing home care ranges from 148 dollars per day (Shreveport, LA) to 462 dollars per day (New York City). Prices given reflect the cost of a semi-private room.
  • Costs are difficult to analyze when a family member provides in-home care. If he or she has to leave a job, factor in the price of their lost income. And of course, emotional stress is impossible measure in dollars.

With few options to cover the cost of long term care, how would you pay for the assistance you need? One option is to set aside the amount you will need in savings. But considering the fact that you might need care for months or even many years, it can be difficult to guess at the price of your future medical needs.

Unless you can set aside enough cash to cover several years’ worth of nursing care, long term care insurance might be your better option. Luckily, federal employees have the opportunity to buy into a long term care insurance program through the Office of Personnel Management (OPM). Benefits are designed specifically for federal employees. Your premiums can be paid directly through payroll or pension deductions, meaning you are never in danger of lapsing on your policy.

For more information on the Federal Long Term Care Insurance program, talk to your financial professional or your human resources department.

 

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