Nursing homes have always been expensive. A big part of the future planning that people do is saving money for their long-term healthcare needs. They expect to spend at least some time in a nursing home or an assisted living center, and they need to have the funds to pay for that high level of care.
However, recent years have seen a spike in the cost of nursing homes. Some reports indicate that the average costs went up by more than they have in the last 25 years, or over two decades. The overall total was just a 2.4% rise, which may sound small, but it’s a significant amount of money when considering that a larger increase hasn’t happened since 1997. It’s clear that the world of long-term care planning is changing, and people need to be aware of it as they prepare for the future.
Why have costs gone up?
One thing that some reports noted was that the three months before this increase had seen consistent declines. So they suggest that the increase may be, in part, correcting for this drop. It would not have been so dramatic if costs had stayed high, but the reversal of the trend makes it stand out.
Additionally, it seems that the internal costs that nursing homes are facing have gone up, which has pushed up the prices for residents. This is especially true when it comes to personnel costs, or paying the labor force.
Finally, there’s just an increasing demand for nursing homes. The Baby Boomer generation is growing older, and so this demand is going to continue to go up. This could drive costs up even more if there are not more options for care for this disproportionately large generation.
Planning for the future
Knowing that nursing home costs are going up is just part of the process. You also need to know what legal steps you can take when planning for the future and trying to address these rising costs.