Potential Long-Term Care Costs to Watch For

Accurately estimating long-term costs is important for avoiding financial trouble as you age. Health insurance and nursing home expenses are potential long-term care costs you might experience. If you don't plan on going to a nursing home, you will not only have to factor in living expenses but also the cost of an aide in case you aren't able to cook meals or clean the house on your own.

Home Health Aide

According to the Genworth Cost of Care Survey, the cost of a home health aide was $4,099 monthly in 2017. By 2027, this expense is expected to rise by $1,410, and by 2037, an individual is likely to pay $7,403 per month for a home health aide. Inflation is one of the reasons why long-term care costs like home health care increase over time, so it should be taken into account as you start planning for the future.

Homemaker Services

Homemaker services cost around $3,994 currently as recorded by the Genworth Cost of Care Survey. By 2037, it's estimated that homemaker services will be $7,214 monthly. Homemaker services differ from those offered by a home health aide. Homemakers handle household tasks like cooking and cleaning whereas home health aides provide more extensive personal care in assisting people to continue living in their own houses instead of residential care facilities.

Private Room vs. Semi-Private Room in a Nursing Home

For those who are interested in living in a nursing home, a private room runs around $8,121 per month. The Genworth Cost of Care Survey predicts that a private room will cost $10,914 by 2027 and $14,667 by 2037. A semi-private room can save you a little money, but it might not be significant enough to outweigh the benefits of a private room. Currently, it costs around $7,148 per month for the average semi-private room.

Health Insurance

Medical insurance is another expense to consider. Seniors may require a different plan as they age to cover their new needs. According to the AARP Public Policy Institute (PPI) report, around 33% of adults in the pre-Medicare eligibility age group spend around 10% of after-tax income on health care. Most states allow insurers to charge higher premiums based on age and health.

You can minimize long-term care costs with the help of our Jacksonville-based insurance agency. We have relationships with nearly 75 carriers, so we can match you with the right insurance plan for your needs and budget. Contact us here at the Della Porta Group if you need any information.