Two important trends paint a very dark picture for the future of long-term care in America. The first trend is the continually increasing price of long-term care. Nursing homes, one of the most popular long-term care options, cost an average of $264 a day for a private room in California. That adds up to more than $96,000 a year!
The second major negative trend is that seniors are not saving enough for retirement, especially when it comes to affording nursing home care, in-home care, or the fees for living in an assisted living facility. According to the statistic-gathering website Statistic Brain, the savings of the average 50-year-old is only $43,797. A retired couple could wipe out their entire savings in paying for just a single year of nursing home care!
As the huge baby boomer population reaches retirement age, we are going to see many individuals struggling to pay for their medical and long-term care needs. Those with long-term care insurance may be able to get some or all of their long-term care costs covered, while many others will eventually need the assistance of Medi-Cal to help pay for their long-term care costs.