What can you afford:
Independent living facilities begin at around 25,000 per year and assisted living and personal care facilities begin at about $35,000 per year.
The national median cost of a long-term care nursing facility is over $80,000 per year (over $90,000 for a private room). The cost varies by region, but the median is about $150,000 in more expensive urban areas.
Check for costs in your specific lacale, checking the online map provided by Genwort at: www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html
Medicare only pays 10% of all nursing facility costs and it’s only for short-term skilled nursing care, not long-term residential care.
Medicaid, The federal program for low-income people pays about half of all long-term nursing facility costs. But it will only pay for these only after you have user up almost all of your savings to pay for your own care. And Medicaid might not pay anything at all for assisted living or some residential care facilities.
The cost of custodial care nursing facilities averages over $5,000 per month – with some costing more than $10,000 per month. These costs are increasing much faster than the general cost of living. Who pays for all of this? For the most part, the answer is you- at least until almost all your money is gone, when Medicaid may begin to pay.