There is no issue of interest to the elder law community that is more attention-getting than that of long-term care costs.
According to the United States Department of Health and Human Services seven out of ten Americans will eventually require some type of long-term care. So you will probably need care, and Medicare won’t pay for it.
All that’s left is to get out your checkbook, right? That may be an option, but in 2016 the average annual expense for a private room in a nursing home was over $90,000. The average length of stay is about two years and three months. Ten percent of people in nursing homes stay in the facilities for at least five years.
The average amount of money a fifty-year-old American has saved for retirement is around $44,000. When you compare this number to the average nursing home costs you see quite a gap.
People who simply cannot pay for long-term care out-of-pocket typically rely on the Medicaid program. To become eligible for the program you must prove that you have financial need. This involves having less than $2000 in what are considered to be countable assets.
This is where Medicaid planning comes in. If you work within the rules in the optimal fashion you may be able to qualify for Medicaid while keeping a significant percentage of your resources in the family.
If you’re interested in learning more about long-term care costs and how you may be able to address them given your unique personal situation contact our firm to schedule a free consultation.