Most older adults don’t plan to spend the final years of their lives in nursing homes. Aiming to age in place at their current residence is much more common. However, nursing homes exist in part because the health complications of age often render people incapable of independent living after a certain point.
When close family members are not in a position to offer the degree of support that an adult needs to continue living in their home or with family, moving into a nursing home is often the safest and best option available. It can be very hard for an elder adult to pay for nursing home services unless they make preparations in advance, such as Medicaid planning.
Those who understand how much it costs to stay in a nursing home may recognize that planning for the worst-case scenario long before they need support might be the best option.
What do people pay for a room in a nursing home?
Nursing homes are prohibitively expensive for those living on a fixed income during retirement. People sometimes assume that they can use their Medicare coverage to offset long-term care costs because they are unfamiliar with the limitations of the program.
Nursing home expenses are generally not eligible for Medicare coverage. If they want a government insurance program to pay for nursing home expenses, they need to be able to qualify for Medicaid.
Texas is actually one of the five least expensive states for nursing home costs, but that doesn’t mean care is cheap. As of the third quarter of 2024, a semi-private room costs $5,323 per month. That is roughly $3,000 less per month than the national median cost.
Location factors into how much people pay for space in a nursing home. Rooms in Dallas tend to be a bit cheaper than nursing home accommodation in Houston, on average, but they cost more than those in the San Antonio area.
Planning is key in long-term care cases
When an older adult in need of long-term care applies for Medicaid, the state looks at their income and their countable assets. Current financial circumstances aren’t the only consideration.
The state also reviews five years of prior financial records. Last-minute planning can lead to the state imposing a penalty. The older adult may have to pay for their own care for several months before they become eligible for Medicaid coverage.
Those preparing for retirement or updating their estate plans during retirement may want to consider the potential costs of long-term care and adjust their plans. Planning ahead of time to qualify for Medicaid can help older adults get the support they need without lengthy delays when they are at their most vulnerable.
