The High and Rising Costs of Nursing Home Care
In 2025, the national median monthly cost for a semi-private room in a nursing home is $9,555, translating to an annual expense of $114,665. A private room is more expensive, with a median monthly cost of $10,965 and an annual cost of $131,583. These figures represent a noticeable increase over recent years, and projections indicate that costs will continue to rise. The substantial financial commitment required for nursing home care makes thorough financial planning essential.
Factors Influencing the Cost
Several variables determine the final cost of nursing home care. The specific services required, location of the facility, and type of accommodation all play a significant role.
- Location: Geography is one of the most significant cost determinants. States with a higher cost of living, such as Alaska ($31,282 monthly) and New York ($15,164 monthly), have much higher median costs than states like Texas ($5,639 monthly) or Missouri ($6,548 monthly). Costs also vary between urban and rural areas within the same state.
- Room Type: A private room consistently costs more than a semi-private or shared room. In 2025, the national median difference is approximately $1,410 per month.
- Level of Care: Nursing homes provide the highest level of care outside of a hospital, offering 24/7 skilled nursing for people with chronic illnesses or complex medical needs. Specialized care, such as for dementia or ventilator support, can further increase the monthly fees.
- Facility and Amenities: A facility's specific offerings also impact pricing. Extra services, amenities, and higher-end features like private dining or extensive recreational programs can result in higher fees.
How to Pay for Nursing Home Care
Paying for long-term care in a nursing home often involves a combination of financial resources, as few individuals can cover the high costs out-of-pocket for an extended period.
Common Payment Methods:
- Private Funds: Many people start by using personal savings, retirement funds, pensions, or other investments to cover the costs. This is often referred to as "private pay". Selling a home or utilizing a reverse mortgage can also be an option to access home equity.
- Long-Term Care Insurance (LTC): This specialized insurance can cover a variety of long-term care services, including nursing home stays, according to the policy's terms. However, policies can be expensive, and premiums increase with age, making it essential to plan ahead. Coverage is subject to benefit limits and elimination periods.
- Medicaid: This is the most common payer for long-term care in the U.S. and covers 100% of nursing home costs for eligible, low-income individuals. State-specific income and asset limits apply, and many individuals use the "spend-down" process to qualify after depleting their private resources. Not all facilities accept Medicaid, so it is important to confirm.
- Medicare: This is a federal health insurance program that is widely misunderstood regarding long-term care. Medicare does not cover extended, long-term custodial care in a nursing home. It only provides limited coverage for short-term stays (up to 100 days per benefit period) in a skilled nursing facility (SNF) for rehabilitation after a qualifying hospital stay. A daily copayment applies from day 21 to day 100 in 2025.
- Veterans Benefits: The Department of Veterans Affairs (VA) offers various programs, such as the Aid and Attendance benefit, that can assist eligible veterans and their spouses with nursing home costs.
Cost Comparison: Nursing Home vs. Other Senior Care
Nursing home care is typically the most expensive senior living option due to the high level of medical care and round-the-clock supervision provided. Other options like assisted living are less costly.
| Care Type | 2025 National Median Monthly Cost | Description |
|---|---|---|
| Nursing Home (Semi-Private Room) | ~$9,555 | Provides 24/7 skilled medical care and personal care for people with significant health issues. |
| Nursing Home (Private Room) | ~$10,965 | Offers the same high-level medical care but in a private, individual room. |
| Assisted Living | ~$6,077 | Offers help with daily living activities but a lower level of medical supervision than a nursing home. |
| Home Health Aide Services | ~$6,483 | Provides professional caregiving in the person's own home for a set number of hours per week. |
| Adult Day Care | ~$2,167 | Offers daytime supervision, social activities, and health services in a community setting, allowing individuals to live at home. |
How to Choose a Nursing Home
Selecting the right nursing home is a multi-step process that requires careful research and consideration.
- Assess Needs and Preferences: Determine the required level of medical care and personal assistance, both for the present and the future. Consider personal preferences regarding location, social activities, and amenities.
- Use Reliable Resources: Utilize the Centers for Medicare and Medicaid Services' Care Compare website (Medicare.gov/care-compare) to check facility quality ratings, health inspections, and staffing levels.
- Visit Facilities: Schedule tours to get a feel for the environment, talk to staff and residents, and observe cleanliness and overall atmosphere. It is recommended to make a second, unannounced visit.
- Verify Certification: Ensure the facility is certified by Medicare and/or Medicaid if you plan to use those programs for payment. A non-certified facility can evict a resident once private funds are exhausted.
- Review the Contract Carefully: Once a facility is chosen, review the admission contract to understand all fees, services, and policies before signing.
For more detailed information, consult the National Institute on Aging's guide on choosing a long-term care facility.
Conclusion
Ultimately, how much does it cost to put someone in a nursing home depends on numerous factors, including geography, accommodation, and required care. With median monthly costs exceeding $9,500, early and thorough financial planning is crucial. While Medicare only covers short-term, skilled stays, long-term care is most often funded through private savings, specific long-term care insurance, or Medicaid for those who qualify. Understanding these costs and payment options is the first step toward making an informed decision for a loved one's future care.
