Long term care costs
Among all the uncertainties surrounding professional long term care is one sure
thing: It costs a lot. While care can sometimes be provided by family or friends,
paid care often becomes a necessity.
Unfortunately, public programs cover only so much of the cost. A great majority
of individuals must rely on personal income and resources to pay for long term care.
The simple tools at the right can help you estimate the cost of care and the amount
you’ll need to save each month if you plan to pay for it out of pocket.
Caregiver costs
Family caregivers face out-of-pocket costs that aren’t covered by any policy or
public program. On average, out-of-pocket expenses range from $386 per month (for
caregivers living one to three hours away from their loved one) to $674 per month
(for those farther away). This includes transportation, phone charges, and other
incidental expenses of arranging and delivering care.
How are others paying for long term care?
The chart below represents the sources of funding of all U.S. long term care, including
care provided to low-income individuals. Note that Medicaid is available only to
those who meet strict state-specific limits on both income and assets that generally
require impoverishment. Medicare provides some coverage for long term care related
to a specific medical event or as part of rehabilitation, but does not generally
cover ongoing care.
Sources: Miles Away-The Metlife Study of Long Distance Caregiving, Mature Market
Institute Metlife, July 2004.