Frequently Asked Financial Questions About Nursing Homes

Common Financial Questions About Nursing Homes

Nursing homes are a necessary part of the aging process for many seniors. They provide a place for older adults who can no longer live independently to receive the necessary senior care.

Looking for the perfect nursing home requires a lot of research and asking before deciding. Not only would you want to find out how much senior care will cost and how to pay for it, but you’ll also want to learn how to reduce its cost or how you will be able to protect your assets once you enter a nursing home.

To help you, we’ve gathered the most frequently asked financial questions about nursing homes and provided the best answers.

How Much Do Nursing Homes Cost A Month?

In 2021, the national median cost of a nursing home room will be $9,034 for a private room and $7,908 for a semi-private room. However, prices might differ significantly according to the region, facility type, and quality of care needed.

How To Reduce Nursing Home Costs?

The cost of skilled nursing facilities is high. Buying a long-term care insurance policy, a long-term care annuity, or a life insurance policy is one of the finest (tax-free) strategies to lower nursing home expenditures. These nursing home insurance plans can cover private and public facilities for several years of care.

Long-Term Care Insurance

Monthly payments will be made continuously. The negatives include the potential for rising premiums and the potential for “use it or lose it” insurance policies.

Long-Term Care Annuity

This doubles or triples your investment to pay for a nursing home.

Life Insurance Policy

Use the death benefit from a life insurance policy while still living to pay for the nursing home.

Additionally, an annual inflation rider is frequently included in these policies, which will aid in keeping up with the rapidly increasing high prices. A long-term care policy is a very useful tool to pay for nursing home care.

A long-term care annuity or life insurance policy reduces the costs by half or down to a third for those who pay for nursing home care.

How Do You Get Around Paying For A Nursing Home?

Placement in a nursing home or keeping an older loved one at home is one of the most crucial decisions you must make. Unfortunately, only a few families can afford a skilled nursing facility because it can be pricey. But there are a couple of ways to get around this.

Finding a home that takes Medicaid is one choice. Medicaid is a government-funded program that assists low-income people in paying for medical treatment. Your loved one might be able to seek assistance with the expense of their stay if they are eligible for Medicaid services.

A different choice might also receive assistance from fundraisers or philanthropic organizations. Numerous organizations exist that are committed to assisting families with these expenses.

How To Protect Assets If Spouse Goes Into Nursing Home

Safeguarding the couple’s assets when one partner enters a nursing home is crucial. An option for doing this is to buy a Medicaid annuity. This annuity offers income when one spouse resides at home while the other receives expert nursing care. Additionally, the Medicaid annuity may cover senior care costs like medical bills and long-term care insurance.

What Is The Highest Source Of Payment For Nursing Homes?

Medicaid is the largest single-payer for nursing home care through its state affiliates.

Are Nursing Home Costs Tax Deductible?

Costs incurred directly for nursing homes are typically tax deductible as itemized medical expenses. Expenses for medical care, lodging, and meals are deductible if you, a parent, a spouse, or another legal dependent, are receiving nursing care principally for medical care. Seniors residing in nursing homes for personal, as opposed to medical reasons, will only be permitted to deduct expenses for actual medical care, not including meal and lodging expenses.


Understanding nursing home costs can be challenging. When it comes to finances, there can be stress involved, and it can take a while to work through everything required.

However, knowing the right questions to ask can save you a lot of trouble when planning financially for your aging needs expenses. 

The key is to do a lot of research and find the best answers to it, so you’ll be better prepared and knowledgeable.