For more than two decades, the Elder Law Section and Bar has made significant strides in educating the public and the legal profession of the importance that seniors engage in advance planning to protect their life savings from the costs of long-term care. While it appears that both seniors and the profession have become more knowledgeable about the costs of long-term care, and virtually every senior has heard of the “five year rule,” there are still a significant number of seniors who have not implemented any advance planning strategies.
Costs and Planning Strategies
If a senior does not have sufficient long-term care insurance, and is not wealthy enough to be self insured and has resources greater than the amounts permitted by Medicaid, he or she will need to privately pay for care in a nursing home or at home. The cost of care in a nursing home can be financially devastating. The average cost of nursing home care downstate is approximately $130,000 to $180,000 per year. Additionally, the cost of care at home downstate averages anywhere between $60,000 to $90,000 per year for 24/7 care at home. These costs are less upstate, but nonetheless financially significant. Unfortunately, it is unlikely Medicaid in the future will continue to be as generous with benefits and eligibility as it has in the past.
