Disclaimer: With Medicaid, VA, and insurance regulations frequently changing, past blog posts may not be presently accurate or relevant. Please contact our office for information on current planning strategies, tips, and how-to's.
Earlier this month, we shared the results of the Genworth 2017 Cost of Care survey, which revealed that nursing home costs have increased steadily over the last year.
Between 2016 and 2017:
- The average cost of a private nursing home room increased by 5.5%.
- The average cost of a semi-private nursing home room rose 4.44%.
- The average cost of an assisted living facility rose 3.35%.
Breaking down the semi-private nursing home average costs by state reveals that the following states have the highest and lowest monthly bills:
Highest Cost of Long-Term Care
New York ($11,076)
North Dakota ($10,636)
New Jersey ($10,038)
District of Columbia ($9,870)
West Virginia ($9,7030)
With the average annual cost of a semi-private room in one of these states at over $140,000, it is crucial that people start to plan for how they will pay for their long-term care.
Lowest Cost of Long-Term Care
- Oklahoma ($4,471)
- Texas ($4,563)
- Missouri ($4,912)
- Arkansas ($5,171)
- Louisiana ($5,171)
- Kansas ($5,551)
- Utah ($5,627)
- Illinois ($5,688)
- Iowa ($5,741)
- Alabama ($6,083)
Although these states reveal a more manageable cost of care, families are still facing over $60,000 annually, on average, for a semi-private nursing home room in one of these states. Planning strategies are also important for individuals in these lower-cost states.
Projected Cost of Care Increases
Genworth projects that the average cost of a semi-private nursing home room will rise 142% over the next 30 years – from $7,148/month to $17,350/month. This projection has a significant impact on the retirement and long-term care planning strategies of individuals at any age.