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Chapter
3 How Much
Does Long-Term
Care Cost?
beyond this basic level will incur additional costs. Still, com-
pared to nursing home care and, in some instances, home care,
assisted living communities offer one of the best values in
long-term care delivery.
Nursing Homes
The national average daily rate for nursing home care is $226 for
a private room and $206 for a semi-private room. That comes to an
average annual cost of over $82,000 for a private room and over
$75,000 for semi-private accommodations.
But the actual cost of care in a nursing home varies almost as
widely as home care and is mainly influenced by city and region. For
example, in Orlando, a private room is a relative bargain at $138 per
day, compared to high cost cities such as Boston at $301 per day
and San Francisco at $307 per day.
However, these figures may be misleading and actually lower
than the true cost of care in a nursing home. Medicaid, the welfare
program, pays for nursing home care for those who are impover-
ished. Analysts point out that most nursing homes lose money on
Medicaid patients because they must accept Medicaid’s low reim-
bursement rates. This results in Medicaid services being delivered
at less than true market value. These low reimbursement payments
are included in the averaging of nursing home costs and thus may
distort the true average cost of nursing home care. (See Chapter 4
for a more detailed explanation of Medicaid)
about Aunt Kathy and you said “Don’t you ever put me in one
of those places”? . . . . . . . .
• Write – If you find the whole thing too daunting, write a letter
or e-mail outlining your concerns and what you would like to
discuss. This can be particularly helpful if you live far away
and only have a weekend to have these talks. You can pave
the way and get them to start thinking about it before you get
together.
• Get Help – Maybe you have a sibling who is more at ease talk-
ing with your parents. Maybe your parents are more comfort-
able talking to someone else in the family about finances or
health. Don’t be offended. You don’t care how the plan gets
developed, just that it DOES get developed.
• Suggest – That they peruse or read this book. They can also
access our online assessment at www.adviceonltc.com.
• Recommend – That they seek advice from an Objective
Financial Advisor on how to plan ahead. (More details about
these advisors are explained in Chapter 6)
Chapter 3: How Much Does Long-Term Care Cost? 45
Grandmother Changed
“Overnight”
My husband’s grandmother was always meticulous
about her housekeeping and was an impeccable
dresser. We were naturally shocked when my hus-
band went to take her to lunch one day and found
her still in her robe and looking confused, her house
in disarray. He knew something was terribly wrong
and immediately called his mother. An appointment
was arranged for the grandmother to be evaluated
by her doctor. Her doctor’s assessment, followed by
subsequent testing, confirmed that she was in the
early stages of dementia.
The family decided it was no longer safe for her
to live alone and moved her into an assisted living
community close by. The cost of care at that time
was $2,000 per month. After several years, she was
diagnosed with Alzheimer’s and required more care
than the assisted living community could provide.
She was eventually moved into a nursing home.
She passed away 14 years later. While settling her
affairs, we made the last monthly payment to the
nursing home: $12,000!
— Ruth Simpson
46 Chapter 3: How Much Does Long-Term Care Cost?
How Much
key Does Long-Term
points Care Cost?