Long-Term Care Costs Continue To Rise

Have you planned for long term care? Do you know how you would pay for long-term care if you became ill or incapacitated? Many people think of long-term care in terms of a nursing home for elderly residents. However, long-term care encompasses a variety of services, including nursing homes, adult day care, assisted living facilities, homemaker services, and home health aide services. Unfortunately, the cost of these services has continued to rise over the past 13 years according to Genworth Financial, a company that sells long-term care insurance.

Long Term Care Costs in 2016

According to the Cost of Care Survey by Genworth, the cost of most services continued to increase from 2015 to 2016. Below are the statistics for the cost of care in 2016 per Genworth.

  • Nursing Homes – The cost of care for nursing homes rose 2.27 percent from 2015 to 2016. The average cost of nursing home care in 2016 was $6,843 per month. Nursing home care does tend to cost more than other types of long-term care because nursing homes provide 24/7 nursing care in addition to personal care assistance and other services.
  • Adult Day Care – These facilities provide a variety of services, including socialization, personal care, meals, and medical management. There are generally organized and structured activities. The cost for adult day care depends on the level of services desired and/or The cost of adult day care actually decreased a little in 2016. The average cost in 2016 was $1,473 per month based on five days of care per week. This represented a 1.25 percent decrease from the cost in 2015.
  • Assisted Care Living Facilities – Assisted care living facilities don’t provide the same level of personal or medical care offered by nursing homes. Therefore, the cost of assisted care living facilities is lower than the cost of a nursing home. The average cost in 2016 increased .78 percent from 2015 with an average monthly cost of $3,628.
  • Homemaker Services – Homemaker services are usually charged by the hour with an average cost of $20 per hour in 2016. The hourly rate for homemaker services increased by 2.56 percent from 2015. Homemaker services can include cooking, cleaning, and running errands in addition to providing companionship.
  • Home Health Aide Services– Home health aide services provide personal care in the home. An aide assists the person with such tasks as bathing and dressing. The average cost in 2016 for home health aide services was the same as homemaker services ($20 per hour). However, the increase from 2015 was only 1.25 percent.

Paying for Long Term Care

Unfortunately, the cost of long-term care is not expected to decrease. Pursuant to the trends over the past decade, we expect long-term care costs to continue to increase. Therefore, it is important to plan for long-term care. Medicare doesn’t pay for long-term care, and long-term care insurance can be expensive. However, there are ways you can plan for long term care.

Medicaid planning can help you protect your assets while qualifying for Michigan Medicaid benefits to pay for long-term care. Another option to pay for long-term care costs include benefits available to veterans and the spouses of veterans. Because paying for long-term care in Michigan can be complex, you want to consult with a certified elder law attorney. Don’t trust your future, your assets, and your personal and medical care to an attorney who doesn’t fully understand the challenges of paying for long-term care.

Call  Christopher J. Berry, CELA For More Information

Determining how to pay for the cost of long-term care in Michigan can be extremely stressful. By engaging in proactive long term care planning while you are healthy, you can reduce the stress and avoid crisis planning when you need to enter a nursing home or pay for other long-term care. Don’t be caught unprepared for the financial burden that long-term care can place on your family.

Our firm has offices in Brighton, Livonia, Novi and Bloomfield Hills, Ann Arbor, Dearborn, and Trenton to better serve our clients in Livingston, Oakland, Washtenaw, and Wayne Counties. Contact our office by calling 844-88-4200 or use our online contact form to request more information or schedule an appointment to discuss how we can help you develop an affordable plan to pay for long-term care.

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