How much does long-term care cost?
The reason some people are willing to risk buying long-term care insurance is the staggering cost of care if it's not provided by family and friends:
- A year in a nursing home costs more than $50,000 on average.
- Home healthcare can cost $1,000 a month or more.
- Assisted living facilities cost $2,000 a month and up, according to the Health Insurance Association of America (HIAA), a national trade group.
Health insurance or Medicare rarely covers any of these expenses. Medicaid does cover nursing facility and some home care costs, but you'll have to meet strict income and asset requirements to qualify. Without long-term care insurance or Medicaid, you'll be footing the entire bill out of your own pockets. It's the chance that these bills will continue for three, four, or five years that long-term care insurance is meant to help guard against.