How Much Does Long-Term Care Really Cost in 2021?

A common question that gets asked often is, How much does Long-term care truly cost?
To begin with, there are different levels of care. Home Care, Assisted Living, and Nursing Home.

A Nursing Home usually costs $20-$30/hour, if you buy a couple of hours a day or a week that will cost around $2,000 to $3,000/month. If 24/7 it will cost around $15,000 to $20,000/month.

Assisted Living typically costs $2,000 to $5,000/month. With additional services, it’s around $5,000 to $8,000/month.

A Nursing Home(in Michigan) typically costs $8,000/month and can be as high as $14,000 to $15,000/month.

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Episode Transcript

Cost of Long-Term Care

Hey, this is Chris Berry, and today, we’re going to talk about the cost for long-term care. If you like this information, please make sure to subscribe to our YouTube channel.

Christopher Berry is a leading state attorney and advisor in the area of retirement and legacy planning. He has been featured in publications such as Ford’s, Kiplinger’s, Crain’s Detroit, and more. He’s the host of the weekly radio show and podcast, The Chris Berry Show. He’s a national thought leader as it relates to retirement and legacy planning, and has authored the Amazon best-selling book, The Caregiver’s Legal Guide.

So a common question I get asked often is how much does long-term care truly cost? And the people, a lot of times have certain ideas, or maybe they talk to someone, and one of the first things is understand that there’s different levels of care, and based on that level of care, that’s going to determine what that cost will be. And it’s not uncommon to confuse these different levels of care. For example, we have something on Facebook talking about the average cost of nursing home care is roughly eight to $12,000 a month, and then I saw there was a lot of comments underneath that saying, “Oh, well so-and-so, or my loved one had care at 4,000.” Well, understand that that’s probably not a nursing home, because we have what we call the elder care continuum, or elder care journey of needing home care, and then assisted living, and then nursing home care, and understand as you go through this continuum, the cost goes up.

So if you’re bringing in commercial home care, so you’re living at home, but bringing someone into the house to help care for you or a loved one, typically, that’s going to run about 20 to $30 per hour. And so typically, if you’re buying a couple hours per day, a couple of times per week, it might be two to $3,000 a month, maybe. 24/7 home care could easily be over 15 to $20,000 a month. And then we might transition into independent or assisted living, this is where it’s almost like a senior apartment, there might be additional services available. Typically, that’s going to run anywhere from two to $5,000 a month. And then if we were to need assisted living with memory care, so that same apartment or hotel type environment with additional services, that might run five to $8,000 a month. And then typically, a nursing home in Michigan is going to run at least $8,000 per month, and it can be as high as 14, $15,000 a month.

 

Best Possible Care

So it’s important to understand when you’re talking about the cost of long-term care, don’t just assume that it’s a nursing home care, or that’s the only thing we’re talking about when we’re talking about long-term care costs, and then don’t confuse the level of care with the typical average cost for that type of care. So yeah, if someone’s paying $4,000 a month, that probably tells me they’re in an assisted living, not a nursing home, because that’s one of the ways that when I talk to families and they have a loved one in a care community, just by asking the cost of that care, that tells me where they are. Are they in an assisted living? Are they in a nursing home? I can tell just by the cost. Typically, your assisted living, it might be four or $5,000 a month, nursing home is typically $8,000 plus.

And then it’s our role to then help families try to figure out how to navigate and pay for the long-term care to make sure their loved one gets the best possible care possible, and then B, make sure we’re doing everything in our power to pay for that, and find ways to protect those resources.

Hopefully this has been helpful helping you understand the different costs of long-term care, and how they correlate to the level of care that your loved one may be receiving. If you liked this information, please make sure to subscribe to our YouTube channel. Thank you so much.

Castle Wealth Group has clients across the nation, and helps families plan, protect, and preserve what is important, by creating a retirement and legacy blueprint.

 

 

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