With increasing healthcare needs of aging parents, many adults find themselves reluctant to place their parents in a nursing home. This is not just due to a desire for maintaining their parents' independence or protecting them from abuse, but also due to the prohibitive cost associated with these facilities.
The American Council on Aging reported that the average annual cost of a nursing home in the U.S. in 2024 was around $10,000 per month., while some states saw costs triple that sum. Taking Alaska and Texas as examples, the former exhibited the highest average costs ($364,453 annually or $29,955 monthly) while the latter presented the lowest average costs across the country ($85,045 annually for a private room).
Medicare, the federal health insurance program for the elderly, unfortunately, doesn't fully cover long-term care in such facilities after a certain period. Jeremy Gurewitz, co-founder and patient advocate at Solace Health, made it clear that, “Medicare is designed for short-term rehabilitation services, not long-term care.”
This means the financial burden often falls onto the adult children, who are usually unprepared for these unexpected and astronomical costs. According to AARP, around 53 million adults in the U.S. find themselves providing care for an aging family member, with an annual personal expense of $7,200, excluding the worth of their unpaid caregiving hours.
A potential solution lies in advance planning. Looking into long-term care insurance, health savings accounts, or transferring assets ahead of time to qualify parents for Medicaid could offer a semblance of financial security. “Early preparedness can help avoid financial and emotional stress down the line,” Gurewitz said. Undeniably, these mounting nursing home costs are a significant stressor for American families, but with prior preparation and strategic planning, the financial burden can be somewhat alleviated.