As most of us go through our daily routines, it is hard to imagine needing help with essential daily tasks. However, research shows that most Americans over age 65 will need daily help, in the form of long-term care, at some point, and the costs continue to rise.
Long-term care (LTC) encompasses a range of services designed to meet the medical and personal needs of individuals who are unable to perform essential activities independently. These services include assistance with daily activities such as bathing, dressing, and eating, as well as medical care for chronic conditions. LTC can be provided in various settings, including nursing homes, assisted living facilities, and in one’s home.
Increasing Demand for Long-Term Care
The demand for LTC services in the United States is on the rise, primarily due to a growing senior population. Projections indicate that the number of Americans aged 65 and older will increase from 58 million in 2022 to about 82 million by 2050. This demographic shift is expected to strain existing LTC infrastructure and resources.
At the same time as the over-65 population is increasing, the U.S. is experiencing a significant shortage of health care professionals specializing in geriatric care. There were approximately 7,400 board-certified geriatricians in 2022, whereas an estimated 30,000 will be needed by the end of the decade to serve our aging population adequately. This shortage extends to nursing staff as well. According to a recent Agency for Healthcare Administration (AHCA) survey, staffing problems have become worse for 60 percent of nursing homes since January 2022.
Changes in Long-Term Care Costs
The costs associated with LTC have been escalating, placing a substantial financial burden on individuals and families. This upward trend in LTC costs is influenced by several factors, including increased demand for services, staffing shortages, and higher operational expenses.
An annual cost of care survey by Genworth and CareScout offers insight into the cost trends of long-term care in the U.S. The survey highlights the rising costs for in-home care, nursing homes, and community and assisted living in each state as well as nationally.
In-Home Care
According to Genworth, the New York average hourly pay for in-home care was $34 in 2024. In-home care includes home health aides, who provide hands-on help with tasks such as bathing and dressing, and homemaker services, which provides support with hands-off tasks, such as cleaning and cooking.
According to the survey, two-thirds of home care agencies nationally now charge the same rate for both types of service.
Assisted Living Care
The annual median cost of living in an assisted living community in New York increased by 8 percent over the past year to $75,600 per year. The occupancy rates nationally in assisted living communities increased from 77 percent to 84 percent, year-over-year. This increase in demand may have played a role in the cost increase, according to the report.
Nursing Home
Genworth found that in 2024, the annual median cost of a semi-private room in a skilled nursing facility in New York increased 5 percent, to $176,660, and the cost of a private room also rose 5 percent, to $186,698.
Estimating Your Long-Term Care Costs
In addition to their survey, Genworth and CareScout offer a free, interactive online tool to help calculate your potential costs for long-term care in the U.S. You can use the tool to estimate the cost of in-home care, nursing home care, and the cost of living in an assisted living arrangement.
You can view the cost per hour, per day, per month, and per year, according to where you live and including projected costs in the years to come. Having this information can help you plan for your future or the future of a loved one.
Planning for Long-Term Care
Planning for long-term care and figuring out how to pay for it can seem daunting. However, investing in long-term care insurance or qualifying for Medicaid may be some of the options available to you to lessen the burden of these ever-rising costs if you are unable to afford private pay for long-term care services. Keep in mind that you and your family members should do whatever you can to be proactive in planning for these possibilities.
Medicaid can provide financial assistance for multiple types of long-term care. However, there are eligibility rules and often planning is required. With the help of a New York elder lawyer, seniors and their families can navigate the Medicaid application process and more easily realize the benefits that will help them live more comfortable lives. Navigating Medicaid’s complex requirements can be overwhelming for seniors and their families. Elder lawyers focus on helping older adults manage legal, financial, and health care issues, including qualifying for Medicaid. This may involve legally structuring an elder’s finances to ensure they meet Medicaid’s strict asset limits, such as creating trusts.
The experienced elder law attorneys at Kurre Schneps can help you plan ahead, find the best way to pay for your long-term care needs, and determine whether you meet the eligibility requirements for any public assistance programs.
