Nursing Care

The Tax Attic with Jerry Coon — May 6, 2010

May 6, 2010 // 0 Comments

More on cost of health, nursing care Last week, I began a discussion on the subject of the costs of health and nursing care and how we are going to pay for that cost during retirement. According to the Department of Health and Human Services, the blunt fact is that taxpayers age 65 and over have a 40% chance of enduring a stay in a nursing home. The trade group, America’s Health Insurance Plans, reports that taxpayers age 85 and over have a 55% chance of being sufficiently disabled; they will require long-term care. The average stay in a nursing home is currently 875 days or 2.4 years—55% of all people pass away within one year of being admitted, but 21% stay for more than five years. The average total time spent between home health care, assisted living, and nursing home totals to just over three years. These time spans and percentages have been climbing as our life expectancies have been climbing. Unfortunately, the costs of home health care, assisted living, and nursing home care have also been rising. Currently, on a national average, home health care costs $25 per hour, unless you need certified nursing help, then the cost rises to $36 per hour. Nationally, assisted living costs $2,714 per month or $32,572 per year and nursing home care costs $204 per day or $74,806 per year. Those are astronomically high figures, especially the nursing care cost. However, here in Michigan, our costs are lower than those on the east and west coasts. In San Francisco, the daily cost is $300 or $109,500 per year and in New York, a person will pay $314 per day or $114,610 annually. From my personal experience, I would say our costs in Michigan are closer to the national average. We can draw at least two conclusions from these facts and figures. The first is that it’s going to be expensive if we require some form of health care, whether it is home health care, assisted living, or nursing home care. The second is that it’s almost a certainty, if we live long enough, that we will require some type of nursing care. That form of care could involve paying for home health care, paying for assisted living, […]