What Long-Term Care Can Cost, and Why Planning Early Is Worth It

What Does Long-Term Care Actually Cost in Ohio?

Long-term care is a phrase many people associate with a distant future. But really, the costs are worth understanding well before that day arrives.

How Much Does Long-Term Care Cost?

Here are the average long-term care costs in Ohio:

• Non-medical caregiver (in-home): $77,792 (based on 44 hrs/week, 52 weeks)

• Adult day health care: $21,580 (based on 5 days/week, 52 weeks)

• Assisted living community: $73,230

• Nursing home, semi-private room: $110,230 (based on 365 days)

• Nursing home, private room: $124,666 (based on 365 days)

Does Medicare Cover Long-Term Care?

Medicare doesn’t cover long-term care, but it does cover short-term skilled nursing care following a hospital stay, generally capped at 100 days, and only under specific conditions. It does not cover custodial care, which helps with daily activities like bathing, dressing, or meals over an extended period.

Medicaid, a separate program, can cover long-term care, but eligibility usually requires spending down most assets first. Understanding the difference between Medicare and Medicaid early can prevent a difficult surprise later. 

When Should I Start Planning for Long-Term Care?

Many financial professionals suggest starting the long-term care conversation in your fifties or early sixties, while more insurance options are typically available and often more affordable. Waiting until a health event forces the issue tends to narrow those choices.

What a Plan Might Include

A long-term care plan often involves several pieces working together:

• A clear picture of what care you might want and where

• An honest look at what your current savings could cover

• A conversation about insurance options, including traditional long-term care policies and hybrid life insurance products

• A plan for how a care need would affect a spouse or family financially

How Do People Pay for Long-Term Care?

Families typically use some combination of personal savings, long-term care insurance, hybrid insurance products, and, in some cases, Medicaid after assets are largely spent down. Coverage through private long-term care insurance is less common than many people expect. Only 3-4% of Americans age 50 and older pay for a long-term care policy, even though federal estimates suggest 70% of people 65 and older will need long-term care at some point. That gap between need and coverage is a large part of why early planning matters.

Is Long-Term Care Insurance Worth It?

The answer depends on your health, your assets, and your family situation. Long-term care insurance can reduce the strain on savings if care is needed, but premiums vary widely and tend to rise with age. Hybrid policies, which combine life insurance with long-term care benefits, have become a popular alternative because they offer a payout either way. This is a decision worth working through with a financial professional rather than deciding alone.

A Plan Built Around the Full Picture

Long-term care is not a topic anyone enjoys thinking about, but the numbers are clear enough to plan around. A retirement plan that accounts for the possibility gives you and your family more options later.

If you would like to talk through how long-term care fits into your retirement plan, schedule an intro call.