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I just checked and it cost 346 dollars a day in 2014 for a nursing home in Massachusetts. That is close to $11,000 a month. I don't know anyone who could afford that.
Has anyone done any research on this subject?


I just happened to run across one of the old statements from FIL's nursing home, which was in MA, and it was $13,200 per month for him back in 2010. He could afford it because he was on Medicaid, so in effect, the taxpayers paid for his care.

For folks like FIL who have no assets, Medicaid is the answer to how nursing home care is provided. For folks with lots of assets, they can afford to self-insure and pay it themselves. For the vast majority of us in the middle, we do things like buy LTC policies (DH and I have done that), or hope for the best.

In our case, I wanted the LTC policies to protect the assets so that one of us would not leave an impoverished spouse because of nursing home care needs for the other. It costs $3600 per year for both of us, and the way I look at this is the same as homeowners insurance. I have it, and hope that I never need it.

An argument can be made that it is better to invest that $3600 per year and use the investments to pay for nursing home care, but I prefer to hedge my bets here and be sure that we are reasonably covered. If I were single, I might make a different decision because I wouldn't care if all my assets had to be used to provide my care leaving my heirs with nothing. I figure that my assets are there to be used for me, and anything left to heirs is a bonus for them.

So I think there are a lot of factors to consider, starting with if you are married or single, what you have for assets, general health and family history etc., but there are ways to provide such care if you run out of assets (Medicaid) and so you are generally not left with no care.

But my preference is to have some choices around my own care, and for that, I would prefer to be paying for it myself, and so have an insurance policy to help.

Others may have different plans and opinions, but this works for us.
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