What to Know About Increases in Long-Term Care Costs

Long-term care — including nursing home and assisted-living facility care, as well as at-home care — have always been expensive. As such, for decades, it has been important for aging adults in Connecticut and across the country to consider asset-protection strategies and to engage in Medicaid planning and long-term care planning in order to avoid having to “spend down” a lifetime’s worth of savings just to have their nursing home stay covered by Medicaid. While many older adults expect that Medicare will cover their needs once they reach a certain age and retirement, you cannot count on Medicare to pay for long-term care. Instead, you will likely need to make yourself eligible for Medicaid coverage — by showing that you have limited enough assets — or pay for coverage another way.

Researchers suggest that costs of long-term care are expected to rise significantly by 2025 and into future years, as the number of older adults also expands substantially. What should you know now about increases in long-term care costs and steps to take in the present?

Rising Costs and Increased Need for Long-Term Care Expected 

It is important to know that analysts expect to see increased long-term care costs combined with a rising need for these services, according to a report in Forbes. Indeed, researchers at the federal Centers for Medicare and Medicaid Services (CMS) indicated recently that, while overall health care costs are expected to rise, long-term care costs “are expected to rise more steeply than in most recent years,” and the “costs of these services will also grow at a faster rate than health care overall.”

Currently, based on data compiled by Genworth, the average monthly cost of a private room in a Connecticut nursing home was $16,577 in 2023. By 2025, data suggests that amount will rise to $17,587 per month, and to over $20,000 per month by 2030 — less than six years from now. Those expectations are reflected in the CMS number predictions, as well.

Planning Ahead: Asset Protection Strategies

What should you do now? Talk with an elder law attorney in Connecticut about asset-protection strategies for your elderly parents and for yourself. Tools and strategies to consider include but are not limited to the following:

• Establishing a Medicaid asset protection trust;
• Avoiding Medicaid penalties from asset transfers; and
• Purchasing long-term care insurance.

Contact a Canton, Connecticut Elder law Attorney 

When an elderly parent or loved one requires long-term care, making decisions about specific nursing homes and treatments can be stressful enough without having to contend with the difficulties and complexities of paying for that care. With expectations that costs for skilled nursing facilities and other forms of long-term care are likely to rise in the near future, it is more important than ever to ensure that your aging parents have considered methods of asset protection and Medicaid planning, and to know that it is not too early to think about these considerations for yourself, as well. An experienced Canton elder law attorney at the Law Office of Brian S. Karpe can speak with you today about an elderly parent’s long-term care needs or planning for your own in the future. Contact us today to have your questions answered and to get help with asset protection and long-term care planning strategies.

Sources:

forbes.com/sites/howardgleckman/2023/04/04/the-us-predicts-big-increases-in-skilled-nursing-and-long-term-care-costs/

genworth.com/aging-and-you/finances/cost-of-care