The cost of long term care is one of the most significant costs that a family may face in their lifetimes. Each year, Genworth conducts a survey to attempt to gather the most up to date cost of care estimates all over the country. When planning for long term care expenses, it is important to know exactly what your family may be facing.
Nationally, the average cost of a 1 year stay in a private room in a nursing home in 2017 was $97,455. This represents a 4% 5 year annual growth. Compare that with inflation rates hovering right around 2%. This figure of $97,455 is pretty staggering, however, what is even more staggering is that the average cost of a private room in Maryland was $118,990 for a 1 year stay in 2017. This is over $20,000 more than the national average. It is not only nursing home expenses that can be problematic. The average cost of an assisted living facility in Maryland was $49,800 per year. Not only are these costs staggering, but Genworth estimates an average increase of about 4% per year over the next 10 years, leaving families paying over $66,000 per year for assisted living, and nearly $160,000 per year for a nursing home in Maryland.
It is not surprise that often families will spend every last penny that they have saved over the course of their lives, just to pay for long term care at the end of life. This is the reason that statistically Medicaid pays for the majority of long term care in the country, because people simply run out of money paying for care themselves.
There are a variety of options to plan for long term care, but those options will all depend on your age, health, family situation, assets, and tolerance for certain levels of risk. Consult your estate planning and elder law attorney for guidance on different long term care planning options.