At LifeStream at Youngtown, we're committed to helping seniors thrive. Here's what you can expect in terms of long-term care costs, along with tips to help you prepare for the future.
Every year, Genworth Financial conducts the Cost of Care Survey to determine the median cost of in-home care, home health services and several other types of senior care. In 2023, assisted living had a national median cost of $5,350 per month. The monthly median is slightly higher in Youngtown, Arizona, and surrounding areas — $5,500.
Nursing home care is much more expensive, as it includes skilled nursing care and 24-hour supervision. In Youngtown and surrounding areas, the median cost of staying in a nursing home ranges from $7,984 per month to $9,946 per month.
If you want to stay in your home for as long as possible, you have several options:
If you don't have enough income to cover the cost of long-term care, don't panic. There are several things you can do now to ensure you have access to high-quality care later. Before you make any financial decisions, consult with an attorney. You may be able to minimize your tax burden or make things easier on your heirs if you get professional advice before you proceed.
A long-term care insurance policy reimburses you for certain expenses. For example, if you move to an assisted living community, your policy may cover the cost of having someone help you with activities of daily living. LTC policies usually have a daily limit, so this type of insurance may not cover the full cost of long-term care, but it can certainly help you reduce your out-of-pocket expenses.
Medicare doesn't cover assisted living or custodial care, which is nonmedical care that helps older adults perform basic activities of daily living. However, it does cover the cost of medically necessary services provided in assisted living communities, nursing homes and other settings. For example, you may be able to use your Medicare benefits to purchase diabetic supplies or see a wound care nurse.
If you have a limited income, apply for Medicare Extra Help. Depending on which plan you have, the Extra Help program may cover your Medicare co-pays and/or premiums. It also gives Medicare beneficiaries access to reduced out-of-pocket costs for prescription medications. The more you use your Medicare benefits, the less you'll have to pay out of your own funds.
Medicaid doesn't cover assisted living, but it does pay for custodial care in Medicaid-approved nursing homes. If you need a nursing level of care, check with your state Medicaid program to determine if you meet the eligibility requirements.
If you have a whole-life policy, you may be able to sell it, borrow against it or surrender it to your insurance company. Each of these options gives you access to cash you can use to pay for assisted living and other types of senior care. Note that the cash value of your policy is likely much lower than the face value of your policy. If you're not sure how much your whole-life policy is worth, contact your insurance agent.
Home equity is the difference between the value of your home and the balance on your mortgage. For example, if you owe $50,000 on a home worth $400,000, you have $350,000 in equity. Depending on what type of care you need, you may be able to take out a home equity loan or apply for a home equity line of credit (HELOC). Both options allow you to borrow against your home equity, making it easier to cover long-term care costs.
Finally, consider selling some of your assets to cover the cost of senior care. If you plan to move to assisted living, for example, there's no need to keep your home. You can sell it and use the proceeds to cover room and board, insurance premiums and other expenses. You may also want to sell savings bonds, valuable artwork and other assets.
