Long Term Care Financial Issues

What to Expect

Long term care can be a major financial expense and careful planning should be done early in life to insure that money issues do not deny proper care to any person in need. The following averages are from the year 2003 and provide a starting point for what can be the average expected costs for long term care. Home health aid costs approximately $75 per visit while having a licensed practical nurse in-home can cost $37 per hour. Assisted living costs approximately $2,379 per month while nursing home care can cost $4,747 per month for a semi-private room and $5,436 per month for a private room.

Future Cost Expectations

Home Care

While the previous averages outline what it would have cost to provide long term care in 2003, it is important to note that the future will bring more expensive long term care. It is expected that the cost of paid help for long term care will almost double in the next 15 years. By the year 2015, the cost of home care will be approximately $35,299 per year. This average for home health care is based on five health visits per week by a professional care giver. The yearly cost for home care is expected to climb to $73,385 by the year 2030.

Assisted Living and Nursing Homes

Assisted living cost an average of $28,548 in 2003. By the year 2015, this yearly cost is expected to rise to $51,268 and will reach a staggering $106,583 by the year 2030 if price increases continue at the present rate. Nursing home costs are not immune from the trend towards rising costs. In 2003, the average cost of semi-private room nursing home care was $56,946. By the year 2015, this yearly cost is expected to grow to $102,299 and will reach $212,673 by the year 2030.

Solutions

Both State and Federal government officials have seen the problems associated with rising long term care costs and have proposed and enacted some remedies to the growing problem. The premiums paid on some long term care policies are tax deductible. Employers who offer long term care plans to employers are allowed, in some cases, to write the cost of the policies off as business expenses, while certain policies are tax free all together.