The cost of nursing home care varies from state to state but still keeps increasing.
The Lincoln Financial Group has conducted a study revealing nursing home costs vary greatly from state to state with costs in Connecticut almost triple the costs in Oklahoma and all of them are rising annually.
McKnight’s reports on average the cost of semi-private and private nursing home care in the U.S. increased by 2% in 2014 and that increase is consistent with other recent years in “Average cost of nursing home care rises 2% annually, Lincoln report shows.”
To put the rising costs in perspective, overall inflation in the U.S. was 1.58% in 2014. Nursing home costs thus rose greater than inflation, but not alarmingly so. In fact, 2% is also the target inflation rate the Federal Reserve aims for in any given year.
Of course, in the future inflation in nursing home costs might not continue at the 2% rate. It depends on numerous external factors.
Nevertheless, it can generally be assumed that the costs will continue to rise over time along with the costs of most everything else.
The important take away for individuals is that when making retirement and estate plans, it should be assumed that prices will be greater than they currently are. The 2% per year increase in costs can serve as a useful guide for people as they make their plans.
An estate planning attorney can guide you in dealing with these issues in your region of the country.
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