⚠️ Medicare Does NOT Cover Most Long-Term Care
Medicare covers skilled nursing for up to 100 days after a qualifying hospital stay — for things like physical therapy or wound care. It does NOT cover custodial care (help with bathing, dressing, eating, mobility) which is what most long-term care involves. Medicaid covers LTC but requires spending down nearly all assets first. This gap is exactly why LTC insurance exists.
Frequently Asked Questions
How much does a nursing home cost per month in 2025? ▼
The 2025 national median for a private room nursing home is approximately $9,720/month ($320/day). Semi-private rooms average $8,370/month ($275/day). Costs vary dramatically: Alaska tops the list at $27,192/month for a private room, while Mississippi is the most affordable at approximately $6,023/month. Costs increase roughly 3.5% annually due to healthcare inflation.
Does Medicare cover long-term care? ▼
No, not for most long-term care. Medicare covers skilled nursing facility care for up to 100 days after a qualifying hospital stay, but only for skilled care. It does NOT cover custodial care — assistance with activities of daily living like bathing, dressing, eating, and mobility — which constitutes the majority of long-term care needs. This is why LTC insurance is critical for most retirees.
What are the most expensive states for long-term care? ▼
Alaska is the most expensive state for LTC by a significant margin — nursing home private rooms average $894/day. Connecticut, Massachusetts, New Jersey, and Washington round out the top 5. Generally, northeastern states and Alaska/Hawaii have the highest costs. Southern states like Mississippi, Oklahoma, Alabama, and Missouri have the lowest costs — often 50-60% below the national median.
How many years of LTC should I plan for? ▼
The average LTC claim lasts about 2.5 years, but planning for only the average leaves significant risk. About 20% of claimants need care for 5+ years. Women tend to need care longer than men. A practical planning approach: a 3-year benefit period covers ~68% of all claims and is the most common choice. Those with family history of dementia or Alzheimer's should strongly consider 5 years or lifetime coverage.
How much LTC coverage do I actually need? ▼
The rule of thumb is to cover the gap between your expected retirement income (Social Security + pension + withdrawals) and care costs. If you expect $4,000/month in income and nursing home care in your state costs $9,000/month, your gap is $5,000/month. A policy that pays $167/day ($5,010/month) would cover that gap. Use our premium estimator to see what that coverage would cost.