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May 17, 2023
The costs of long-term care continue to rise in the United States, with a private room in a nursing home now costing roughly $7,700 per month on average. Making matters worse, Medicare does not cover long-term care, whether it’s administered in a nursing home, an assisted living community, or at home.
According to the Administration on Aging, as many as two-thirds of today’s seniors will need long-term care at some point in their lives, so it’s essential to plan for the potential expense — which can vary widely depending on the state you live in.
The following seven states have the highest costs for long-term care. If you live in one of these states, you may want to consider obtaining care elsewhere.
FYI: One of the best ways to pay for long-term care is with a life insurance rider. To learn how life insurance can help you cover long-term care, read our guide to the best long-term care insurance providers.
Delaware has the fifth-oldest population of all states, but its costs for long-term care are exceedingly high.
According to Genworth, nursing home care in Delaware costs $12,273 per month for semiprivate rooms and $12,577 per month for private rooms — over $400 per day. Adult daycare services cost an average of $1,661 per month, however, which is one of the nation’s lowest.
North Dakota is well on its way to a ratio of one senior for every four people under the age of 65, so its high projected costs of long-term care will matter to a lot of people.
The situation is accentuated by its high monthly rates for nursing home care, which range from $11,987 to $12,587 per month on average, depending on the room. Adult daycare services, which cost over $3,300 per month on average, are equally exorbitant compared to other states. Assisted living costs ($3,391 per month) fall in the lower half of the national average.
The Big Apple likes to take a bite out of its seniors, but anyone who has lived there expects to pay high premiums for pretty much everything. Its adult daycare facilities are surprisingly affordable at $1,950 per month on average, but it’s partly due to the spread of costs across such a large state.
If you’re looking for nursing homes in New York City, however, you’ll see where it earns its top-five spot among states with the most expensive long-term care. Semiprivate and private rooms range from $12,471 to $13,231 per month.
It’s not a stretch to call Massachusetts the birthplace of America, and its senior citizens pay for all that heritage with the fourth-highest long-term care costs in the country.
Assisted living costs are $6,500 per month, and private rooms in nursing homes hit over $13,500 per month. Adult day care services are relatively low at $1,587 per month on average, but assisted living costs are some of the highest at $6,500 per month.
Hawaii may be the honeymoon capital of the United States, but it makes a much less convincing argument for retirement. It’s the first state on the list to break $14,000 per month for nursing home services (for a private room), but its adult day care and assisted living costs are about the same as previous entries.
High travel and living expenses in Hawaii should be additional considerations if you plan to retire there, especially if you predict needing long-term care.
Did You Know? In addition to high costs for care, Hawaii is also ranked No. 2 on our list of the least tax-friendly states for seniors.
Mark Twain, whose house still stands in Connecticut, once said, “Virtue has never been as respectable as money.” The state seems to have taken that to heart, because aside from all the aquariums, casinos, and other sites, it also supports itself with the most expensive long-term care costs in the lower United States.
Private rooms in nursing homes cost over $15,100 on average in Connecticut, and semiprivate rooms hardly fare better at $13,764 per month. The costs go up even more in the state capital.
The remote environment of Alaska isn’t the only thing that will send a chill up your spine in the nation’s largest state. Its long-term care costs are chilly in their own right, with the country’s highest costs for nursing home care. And it doesn’t earn the top spot by a narrow margin.
Rooms in Alaskan nursing homes, whether private or semiprivate, will run you over $31,500 every month — over four times the national average. For other types of facilities, thankfully, Alaska is closer to other states.
High long-term care costs can be attributed to several critical factors, including nationwide shortages of caregivers compared to the increasing population of seniors.
The issue has only been inflamed by the COVID-19 pandemic, which saw record-high turnover rates for caregivers due to the added risk of exposure. Training and recruiting costs have also gone up due to added procedures related to the virus.
In addition to pandemic-era worker demand, bed shortages and higher demand for quality services have caused the cost of nursing homes to be particularly affected. That has led the caregiving industry to shift toward home care, which will hopefully take the pressure off crowded facilities.
Accounting for long-term expenses should factor significantly into your retirement plans. Since long-term care has the potential to be your primary expense later in life, choosing a state with affordable long-term care costs could have a lasting impact on your wealth and happiness. Before retiring in any of these seven states, consider the possibility that you or your spouse will need extended care in the future and research how other states stack up.
