Long-term care is more costly in certain states.
The majority of Americans will require long-term care at some point in their lives.
In fact, once you reach age 65 the chances of needing long-term care at some point is 70 percent!
It is important to plan for this costly expense.
You cannot plan properly without knowing the estimated expenses.
According to a recent Think Advisor article titled “15 Most Expensive States for Long-Term Care: 2019,” not all states are equal in this area.
The article references a Genworth study on the costs of homemaker and long-term care costs.
In general, there has been a significant increase.
The average cost for homemaker services – such as running errands, cooking, and cleaning – rose by 7.1 percent from last year.
Home health costs have increased by 4.6 percent to an annual median cost of about $52,642.
What are some reasons for these increases?
Factors includes tight labor markets, costs of complying with regulations, and changes in post-acute Medicare reimbursements.
The cost for home care increased more than facility expenses.
Assisted living and nursing homes have increased by between 1 and 2 percent.
The national median for annual costs is about $19,500 for adult day health care services and about $102,200 for a private room in a nursing home.
Of course, these are national averages.
Some states have more expensive long-term care than others.
The top three to avoid?
Stay clear of Alaska, Massachusetts, and Washington, D.C. when you retire.
Doing so will help your money go further in paying for long-term care costs.
Long-term care insurance is a useful tool in protecting your savings from the high cost of care.
With figures this daunting, do not delay planning for declining health related to aging.
Reference: Think Advisor (October 22, 2019) “15 Most Expensive States for Long-Term Care: 2019”