Elder law attorneys keep a tight focus on the state of long-term care costs because this is an issue that directly impacts our clients.
Genworth Financial has been conducting surveys on an ongoing basis to keep track of the costs around the country. Since 2023 is behind us, they have been able to compile the final statistics for last year.
We will share the numbers in this post, but before we get there, we should explain why long-term care costs should be on your radar.
Medicare Won’t Help
If you are going to qualify for Medicare when you reach the age of 65, you may wonder why you should care about long-term care costs. After all, Medicare covers the health care needs of seniors, and nursing homes provide medical care, right?
The type of care that nursing homes provide is considered to be custodial care, and this is not covered by Medicare. This comes as a rude awakening if you have never explored the issue, but it is an unpleasant reality.
Will I Really Need Living Assistance?
Once you recognize the fact that Medicare will not pick up the tab, your temperature may not rise that much if you assume that very few elders actually need paid care.
In fact, seven out of 10 seniors who are turning 65 on any given day will require help with their activities of daily living. More than one-third of them will require nursing home care per se.
2023 Oklahoma City Long-Term Care Costs
Now that we have set the stage appropriately, we can address the subject at hand. In 2023, the median annual charge for a semi-private room in an OKC area nursing home was $75,738. This is a 6 percent increase over the 2022 figure.
That percentage is eye-catching enough, but private rooms went up at an even higher rate. The median annual charge last year was $93,988 and this is an 11 percent increase.
Sometimes a senior who would otherwise require nursing home care can stay at home with assistance that is provided by a licensed home health aide. The median charge for this service in our area was $67,496 in 2023, which is a 7 percent increase over the previous year.
These are some attention-getting figures, and the trajectory is not very encouraging. If you need long-term care in 20 years, Genworth estimates a $170,000 median annual cost for a private room.
Medicaid Eligibility
You can prepare for potentially devastating long-term care costs if you implement a plan that will lead to Medicaid eligibility. This program will pay for long-term care, but you cannot qualify if you have more than $2,000 in countable assets in your own name.
There are some possessions that do not count, including your home, and we will look at them in a future post. When it comes to the countable assets, you could convey resources into an irrevocable Medicaid trust.
You would not be able to act as the trustee or access the principal, but you could receive distributions of the trust’s earnings until you apply for Medicaid. As long as you fund the trust at least five years before you submit your application, the principal will not be counted.
Attend an Educational Event
We host events on an ongoing basis that deliver a treasure trove of useful information about this important subject and others. There is no charge to attend the sessions, so this is a great opportunity to build on your knowledge without digging into your pocket.
To see the dates and obtain more information, visit our Oklahoma City elder law/estate planning events page.
We Are Here to Help!
If you take the right steps at the right time, you can live comfortably and preserve your legacy for the benefit of your loved ones. We can help you put a plan in place, and you can set the wheels in motion if you send us a message or call us at 405-843-6100 in OKC and 918-615-2700 in Tulsa.
