Long-Term Care Costs Are on the Rise
Most senior citizens will require help with their day-to-day needs at some point in time. This is a fact of life that you should be well aware of when you are looking ahead toward your retirement years.
Though you will qualify for Medicare coverage at the age of 65 if you worked for any length of time during your life, the program does not pay for living assistance. This creates a significant gap, because long-term care is very expensive, and costs are on the rise.
Nationally, the average annual cost for a private room in a nursing home exceeds $90,000. We practice law in the state of Texas, and fortunately for us, costs are somewhat lower in our state.
Genworth Financial has been conducting an ongoing survey that keeps a finger on the pulse of the state of long-term care costs around the country. According to the survey, in the state of Texas, the median annual charge for a private room in a nursing home is $68,620 at the present time. The median annual charge for a semi private room is $51,100.
Assisted living communities are also rather expensive. The survey states that the median annual cost for a one-bedroom unit in an assisted living community in the state of Texas is $42,540.
As you can see, at the present time, long-term care is costly, but the expenses could be considerably higher if you need long-term care in 20 or 30 years. The Genworth survey predicts a three percent per year increase in nursing home and assisted living community costs in the state of Texas over the next five years.
A government survey was conducted a few years ago thatyou found that the average length of stay is approximately 2 years and three months. Ten percent of nursing home residents remain in the facilities for at least five years. When you do the math, you can see that long-term care costs can be considerable.
Though Medicare will not pay for long-term care, Medicaid does pay for living assistance if you can qualify. Because Medicaid is a need-based program, there is a $2000 limit on countable assets, so people often give gift to their loved ones so that they can qualify for Medicaid to pay for long-term care.
To do this with optimal effectiveness, you have to act early on, because there is a five-year look-back. You are penalized and your eligibility is delayed if you give away assets within five years of submitting your application for Medicaid coverage.
Learn More About Medicaid
If you would like to obtain some detailed information about Medicaid and long-term care, download our special report. This in-depth report is being offered free of charge right now, and it will provide you with a great deal of very useful information. Click the following link to access your copy: Free Medicaid Planning Report.