From Yahoo Finance: 2025-05-10 08:30:00

A $350,000 account could be exhausted in just a few years if both members of a couple required semi-private rooms in skilled nursing facilities. However, most people don’t incur nursing home bills of that magnitude. Government assistance, long-term care insurance, and other financial tools can help pay for nursing home costs without depleting savings.

In 2021, the average daily cost of a semi-private room in a skilled nursing facility was over $94,000, totaling about $350,000 for two years of care for both members of a couple. However, only 35% of people spend any time in a nursing home, with the average stay being around a year.

Medicare covers up to 100 days of nursing home care, while Medicaid will cover nursing home stays of indefinite length for those with limited financial means. To qualify for Medicaid, assets must be limited, and income must fall within strict limits.

Some states do not include IRAs when determining Medicaid eligibility, safeguarding those funds. Gifts to family members may help meet Medicaid’s means test, but must be done at least five years before applying. Qualified income trusts can also help meet Medicaid’s income limits.

Long-term care insurance, annuities, life insurance, health savings accounts, home equity loans, and reverse mortgages offer additional ways to pay for nursing home care. Financial advisors can help develop strategies to minimize risks to retirement savings, including the costs of long-term care.



Read more at Yahoo Finance: We Have $350,000 in IRAs. Can a Nursing Home Claim Our Savings?