Key Takeaways
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America’s aging population is increasing demand for long-term care services.
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Costs for in-home care, assisted living, and nursing home care are rising nationwide.
Many people don’t expect to need help with basic daily activities, but statistics show that most Americans over the age of 65 will eventually require some form of long-term care (LTC). Understanding the scope and rising cost of long-term care is essential for families preparing for the future.
Long-term care encompasses both medical and personal support for individuals who can no longer manage daily tasks independently. These services may include assistance with bathing, dressing, eating, and managing chronic conditions. Care can be delivered in a variety of settings, including nursing homes, assisted living communities, and private residences.
Why Is the Demand for Long-Term Care Increasing?
The U.S. population is aging rapidly. According to projections, the number of Americans aged 65 and older will grow from 58 million in 2022 to around 82 million by 2050. This demographic shift is placing significant strain on long-term care infrastructure.
Compounding the issue is a shortage of trained health care professionals — especially those with expertise in geriatrics. While about 7,400 board-certified geriatricians were practicing in 2022, estimates suggest that at least 30,000 will be needed by 2030. A recent Agency for Healthcare Administration (AHCA) survey found that 60% of nursing homes reported worsening staffing challenges since early 2022.
How Much Does Long-Term Care Cost in 2024?
The cost of LTC services is rising across the board due to workforce shortages, inflation, and higher demand. An annual survey from Genworth and CareScout highlights national and state-specific increases in the cost of care for seniors.
| Type of Care | 2024 Median Annual Cost | 2023 Cost | Change |
|---|---|---|---|
| In-home care (home health aide) | $77,792 | $75,504 | ↑ $2,288 |
| Assisted living care | $70,800 | $64,200 | ↑ 10% |
| Nursing home (private room) | $127,750 | $116,800 | ↑ $10,950 |
In-Home Care Costs
In-home care continues to be one of the most requested services. The national average hourly rate for care in 2024 is between $33 and $34. Services include home health aides, who assist with tasks such as bathing and dressing, and homemaker services, such as cooking and light cleaning.
According to Genworth, the cost of home health aides increased by 3%, while homemaker services rose by 10% from 2023 to 2024. Most agencies now charge the same rate for both types of care.
Assisted Living Costs
Assisted living communities offer residents help with daily activities, medication management, and meals in a semi-independent setting. The median annual cost rose 10% year-over-year, and occupancy rates increased from 77% to 84%. This heightened demand may be a contributing factor in the price surge.
Nursing Home Care Costs
Nursing homes provide skilled care for individuals with serious medical conditions or those needing around-the-clock supervision. In 2024, the median annual cost of a semi-private room rose from $104,028 to $111,325, while the cost of a private room increased by 9% to $127,750.
Use Genworth’s Long-Term Care Cost Calculator
To help estimate your potential long-term care expenses, Genworth and CareScout offer an interactive online tool. You can explore projected costs by location and care type — hourly, daily, monthly, or annually — and forecast costs for future years.
Access the calculator here to compare long-term care costs in your state or city.
How to Plan for Long-Term Care Costs
While LTC can be expensive, planning ahead can ease the burden. Options such as long-term care insurance and Medicaid planning can help cover costs. However, eligibility for public benefits often depends on your income and assets.
To ensure you’re making the best decisions for yourself or a loved one, it’s crucial to work with an experienced elder law attorney. An attorney can guide you through LTC planning, help you preserve assets, and determine the best options based on your goals and financial situation.
Speak With a Long-Term Care Planning Attorney
At McClelland Law Firm, our experienced elder law attorneys assist families across Arkansas with Medicaid planning, long-term care insurance reviews, and asset protection strategies.
Call us today at 501-834-2070 or contact us online to schedule your consultation at our Sherwood, Benton, or Searcy office. We’re here to help you prepare for the future with confidence.
Frequently Asked Questions
Is long-term care insurance worth it?
Yes, in many cases. LTC insurance can help protect your assets from being depleted by long-term care costs, especially if you don’t qualify for Medicaid.
Does Medicare cover long-term care?
Medicare covers some skilled nursing care after a hospital stay but does not pay for custodial care, such as help with bathing or dressing.
Can I qualify for Medicaid to help pay for long-term care?
You may qualify if your income and assets fall below your state’s Medicaid limits. A qualified elder law attorney can help with Medicaid eligibility planning.
How can I plan for rising long-term care costs?
Start by estimating your needs using a care cost calculator, exploring insurance options, and speaking with an elder law attorney to create a comprehensive plan.