Private Nursing Home Costs Skyrocket in America
Long-term care is becoming increasingly expensive for elderly Americans, and many of them find that the services they need aren’t covered under their healthcare insurance plans.
The costs of caregiving at adult daycare centers and assisted-living homes have jumped 4.5% this year, according to a recent survey. This is the second-highest increase since 2004.
The costs of healthcare services at home have jumped even higher, by six percent this year. Adults seeking caregiving at home may have to pay up to $21.50 an hour. The rising costs are attributed to labor becoming more expensive and patients having more complex healthcare needs.
Adults seeking care at private nursing homes have to pay more than $97,000 a year. At the rate that these costs are growing, private nursing home care could soon surpass $100,000 per year.
The sad reality, however, is that most elderly Americans have not planned for these expenses ahead of time. Recent surveys suggest that about one-third of Americans over the age of 40 are not paying toward any healthcare plan that would cover long-term care costs. Many believe they are fully covered by Medicare, the government-sponsored healthcare insurance program for Americans aged 65 and older. However, Medicare provides only limited coverage.
Further, many older Americans fail to qualify for Medicaid because it primarily serves poor Americans. In many cases, elderly Americans feel forced to sell off their assets in order to qualify for Medicaid coverage.
Joe Caldwell, a director at the National Council on Aging, points out that most Americans don’t plan for these expenses because they don’t foresee them. “People don’t like to think about it and talk about it ahead of time, so they kind of put off planning and saving for it financially because they don’t think it’s going to happen to them, ” said Caldwell.
Rising healthcare costs are a grave concern for Americans, especially since medical expenses remain one of the major factors causing personal bankruptcies in the country.
“Long-Term Care Shocker: Nursing-Home Cost Seen at $100,000 a Year,” Newsmax Finance, September 27, 2017.