Probability of Needing Nursing Home Care

Approximately 35% of Americans who reach age 65 will enter a nursing home at some point in their remaining lifetime, according to projections from the Department of Health and Human Services. About 10% will stay for 5 years or more. Women are more likely to need nursing home care than men (37% vs. 28%), primarily because they live longer.

The median annual cost of a private nursing home room was approximately $108,000 in 2023, and a semi-private room about $94,000. Assisted living averages about $54,000 per year. These costs are a major concern because Medicare covers only short-term skilled nursing (up to 100 days following a qualifying hospital stay), while Medicaid covers long-term care only after an individual has exhausted most personal assets.

Long-term care insurance is one planning strategy, though premiums have increased significantly and coverage has become more restrictive. Other approaches include personal savings, home equity, and Medicaid planning. The trend toward home and community-based services has been growing, with many states expanding programs that help seniors remain at home. About 70% of people over 65 will need some form of long-term care services (including in-home care), even if not in a nursing facility.