How Much Will A Nursing Home Cost?

Nursing home care can take a sizable portion of your income annually, so if you haven’t set up a way of covering any prospective nursing home stay, consider doing so now. If you or a family member will need nursing home care in the near or distant future, having an insurance plan, long term care insurance or dedicated trust fund can help take a significant part of the worry away as you plan.

Daily Costs and Payment Options 

Daily costs of nursing home care for one person can easily exceed $200 per day, which means you can quickly burn through savings or retirement accounts just to take care of one person. Options for payment include using government programs, long term care insurance, VA funding for those who qualify or private-pay. Setting up a plan ahead of time can mean the difference between draining retirement accounts and not having enough funds to help with end-of-life issues.

Annual Costs, Private or Shared Room 

As of 2006, a private room in a nursing home cost $206 per day, according to the AARP Public Policy Institute. If you multiply this daily rate by 365, you get $75,190. It’s easy to see that, if a family member has to stay in a nursing home for any length of time, their care will drain their accounts. 

For a shared or semi-private room, the costs drops, but not by very much. This daily costs runs about $183/day, or more than $66,000 annually.

Payment Options 

If you know you or a family member will be staying in a nursing home for a long time, you may be able to negotiate those long-term costs. The nursing home may agree to a smaller private-pay rate that is lower than the private pay rates they make public. You need to know that the rate you negotiate may still be higher than the Medicaid rate.

Before you develop an illness, buy long term care insurance that will be used to cover your nursing home costs.

If you have not been able to negotiate a lower rate or buy insurance, you’ll have to turn to Medicare, which will cover rehabilitation after discharge from a hospital for medically necessary care. This program pays for 100 days of recovery care. You must be transferred to a facility with Medicare-certified skilled nursing care.

If you have used up most of your retirement and saving assets, you may qualify for Medicaid. A case manager will look at the assets you have remaining to determine if you qualify for assistance.

If you are a single veteran, you may qualify to receive assistance of $1,733 per month. Your spouse may qualify for $1,114 per month. This number jumps to $2,054 for a veteran and spouse who both need nursing home assistance. If you are a vet married to another vet, you may qualify for up to $2,676 monthly for nursing home care.

Out-of-Pocket Expenses to Expect 

Insurance and government programs won’t cover out-of-pocket expenses. You need to have the funds to pay for a telephone and television, if you desire these. You’ll need clothing as well. Out-of-pocket medical expenses won’t be covered by government programs either.