Long term care options for seniors are becoming more expensive. But family caregivers still need help caring for their older adults.

That could mean hiring in-home care help, needing home health aides, or moving them to assisted living or a nursing home.

Understanding future care costs means that you can prepare for what’s coming and take action while things are relatively calm (no health crisis or emergency).

Even if the estimated costs turn out to be a big number, knowing is better than living under a cloud of uncertainty. It’s better than being surprised later on and having to scramble to try to pay for care services that have suddenly become absolutely necessary.

We explain the misconception that the government will pay for long term care, what the average costs are, where to get a cost estimate (free, no strings), and 5 ways to use that estimate to plan for the future.

Unfortunately, many people incorrectly believe that government programs will cover most or all of the cost of long term care for everyone. That’s simply not true.

Traditional Medicare doesn’t cover long term care. It only covers limited stays in nursing homes and intermittent home health care after a hospitalization. In-home help for everyday activities like eating or bathing isn’t covered. Ongoing home health care also isn’t covered.

Note: Starting in 2019, Medicare Advantage plans are allowed to offer coverage for a wide range of personal services including home care, health-related transportation, home safety improvements, and more. However, relatively few plans are currently offering these personal care benefits. Traditional Medicare doesn’t offer these benefits.

In Genworth Financial’s 2018 Cost of Care Survey, they found that long term care costs are high and have been steadily rising over the years.

In 2018, a private room in a nursing home cost $100,375/year. That’s a 3% increase over the 2017 cost of $97,455/year. From 2016 to 2017, that cost rose 5.5%.

Another category where costs have been increasing is home health care, which is similar to having skilled nursing care at home. In 2018, the annual cost was $50,336/year for 44 hours/week of care. That’s an increase of 2.3% over the 2017 priceof $49,192/year.

In some years, the increase has been larger. From 2016 to 2017, annual home health care costs rose 6.2%.

Note: National median costs are used for comparisons and prices will vary depending on location.

To get an estimate of the cost of long term care based on your older adult’s location and care needs, use Genworth’s free long term care cost calculator.

Seeing these costs in black and white can be overwhelming. But knowing what to expect helps you prepare for the future.

This gives you the chance to plan ahead for the care your older adult will probably need and protects you and them from being blindsided by large expenses.

• Understand your older adult’s financial situation
• Understand your own financial situation
• Create best case and worst case scenarios
• Get financial and legal advice from experts
•  Discuss with family