What’s your long-term plan?

Robin Weingast piggy bank ImageA recent Daily News article by Phyllis Furman reported on the shockingly high annual cost of private nursing home rooms in New York City. According to Genworth’s annual Cost of Care Survey, here’s what you can expect for a private nursing home room:

  • A room in Manhattan costs $180,000 per year
  • A room in Queens costs $160,000 per year
  • A room on Long Island costs $140,000 per year

 

When you compare this to the national median cost of $84,000 per year, NYC can be a pricey place to spend your golden years. Only San Francisco is more expensive.

These prices are compounded by the fact that the average nursing home stay is 2.5 years, and, according to Genworth, prices rise approximately 5% each year.

What’s contributing to these outrageous costs? According to Genworth, it’s property costs, staff, insurance, and maintenance.

When considering a home health aide, NYC is closer in line to the national median rate of $19/hour. NYC residents pay a median rate of $22/hour. This has become a popular option for NYC residents, and seven out of ten of Genworth’s first-time clients choose this option.

It’s important to note that Medicare generally won’t pay for nursing home stays or home care. Medicaid offers some funding potentials, but you will need to familiarize yourself with their eligibility requirements. Another option is to purchase a long-term care policy.

The other factor at play is that the cost of a long-term care policy today runs almost 30% to 50% more than it did just three to five years ago.

According to the American Association for Long-Term Care Insurance, a 60-year-old couple should expect to pay about $2,000 a year for $162,000 coverage for each spouse.

The team of experts at Robin S. Weingast and Associates can help you with all of your long-term care policy needs. We are here to answer questions and to help you put a plan in place that will make sure you and your loved ones are prepared for whatever long-term care situation they require. Contact us today for a free consultation and to discuss how to create a long-term care plan.

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