ELDER CARE COSTS:

A GROWING CRISIS FOR SENIORS

The rising costs of elder care in the U.S. are becoming an increasing financial burden on seniors and their families. Recent studies indicate that senior living expenses are growing at rates far exceeding inflation, especially for assisted living and nursing home care. Some regions, such as the West and South, have seen price increases as high as 1.5 times the inflation rate. The average cost of a private room in a nursing home is now around $108,000 annually, up from $82,000 a decade ago. Assisted living facilities are also seeing sharp increases, averaging $4,995 monthly. In-home care services, essential for many seniors, have also risen by over 10% in recent years, forcing families to seek alternative financial strategies like long-term care insurance, reverse mortgages, and other options to meet these mounting expenses.

In 2024, Medicaid continues to be a crucial payer for long-term care services in the U.S., including nursing home care. It is estimated that Medicaid covers approximately 50%-60% of the costs associated with nursing home care nationally. Medicaid is the primary funding source for long-term care of seniors who meet the eligibility requirements, including financial and medical criteria. However, residents must contribute most of their income toward care costs, and Medicaid covers the rest. Each state’s Medicaid program may have slight variations in how they implement coverage, but overall, Medicaid plays a dominant role in financing long-term care for seniors across the U.S.

2024 Report: Cost of Long-Term Care and Senior Living (A Place for Mom)

Senior care is crushingly expensive. Boomers aren’t ready (The Washington Post, 3-18-24)

Will Medicaid Pay for a Nursing Home or Assisted Living? (NOLO, 3-18-24)

America’s ‘Silver Tsunami’ Crisis Is Only Just Beginning (Bloomberg, 6-20-24)

Elder care costs are outpacing inflation. Americans want a lifeline (NBC News, 10-16-24)