What Long-Term Care Really Costs

Long-term care is assistance with everyday activities—such as bathing, dressing, eating, using the bathroom, or moving around—when someone can no longer manage them independently. Care can be provided at home, in an assisted living community, or in a nursing facility.

The cost depends on the type of care, how much care is needed, how long it is needed, and where you live. Nursing facility care generally costs more than other types of long-term care, but even part-time assistance at home can become a significant expense when needed for months or years.

Many people assume Medicare will pay for long-term care. Generally, it does not cover ongoing custodial care, meaning help with daily activities when that is the primary care needed. Medicare may cover certain skilled nursing or rehabilitation services when specific requirements are met, but it is not designed to pay for extended custodial care.

Medicaid can help pay for certain long-term care expenses for people who meet its eligibility requirements. Those requirements include financial and other criteria that vary by state. Depending on the circumstances, a person may need to use some of their available resources toward care before qualifying for Medicaid assistance.

Without a plan, long-term care expenses may need to be paid from personal savings, income, property, or other family resources. Family members may also provide some or all of the care themselves.

Planning ahead can give you and your family more choices. Options may include long-term care insurance, a life insurance policy with qualifying long-term care benefits, or other personal resources and planning strategies.

The goal isn’t to predict whether you will need long-term care. It’s to consider how you would want to pay for it if you do—and how that decision could affect the people and assets you care about.

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