Paying for Long-Term Care
The cost of care and who pays for it
The Average Cost of Long-Term Care
* Based on Genworth Cost of Care Survey 2021
- Medicaid
- Medicare, VA, and Other Public Programs
- Out Of Pocket
- Private Insurance
Who Pays for Long-Term Care?
Medicaid is the largest payer of long-term care in the U.S. However, in order to qualify for benefits, you must meet certain requirements.
Paying for care out of pocket may be feasible for wealthy individuals, most seniors will deplete their life savings within one year of entering a nursing home.
Other public programs may cover a portion of long-term care costs but only in specific situations and only for qualified individuals.
Long-term care insurance provides benefits in the event of a care need, but you must be relatively young and healthy to qualify for a policy.
*These figures represent nursing home payees. Other long-term care expenses may vary. Based on Genworth Cost of Care Survey 2021
Planning Ahead for Long-Term Care
If you're concerned about future long-term care costs, it's never too early to start planning. In fact, a long-term care plan is an essential piece of any estate plan. Planning ahead while you're young and healthy provides peace of mind as you age and ensures your nest egg is protected, even if a health crisis strikes.