A government report projects that costs for nursing home, continuing care retirement communities, and home care will continue to rise in coming years. The Centers for Medicare and Medicaid Services (CMS) predicts that nursing home and continuing care retirement community costs will rise at about 5% per year through 2030. Home care costs are predicted to rise by over 7% per year through 2030.

These increases are driven by increased demand due to an aging population and an increase in the number of other disabled adults requiring care. The increased demand for care combined with continuing staff shortages are putting pressure on care companies/providers and family members alike. Ultimately, individuals may face higher out of pocket costs for both care and long-term care insurance.

There are options available for individuals looking to control care costs. Medicaid does cover nursing home costs, but individuals must meet restrictive, need-based guidelines before becoming Medicaid eligible. If done far enough in advance, an elder law attorney can create an irrevocable trust that protects a couple’s assets while allowing for Medicaid eligibility for nursing home coverage. Even if there is a limited time before a person needs nursing home care, there are other planning options individuals can utilize to minimize costs. However, Medicaid is not the only solution to paying for long term care. Long-term care insurance is also an option to control costs. A local elder law attorney can work with clients to determine what the best option is for each client.

For assistance in dealing with nursing home costs, please call Mitchell, Brown and Associates at (314) 962-0186.