Long-term care is one of the largest expenses in retirement — and one that most people drastically underestimate. A single year in a nursing home costs more than the median American household earns in two years.

Quick answer: In 2026, the national median costs are: nursing home private room $116,000/year, nursing home semi-private $104,000/year, assisted living $64,000/year, home health aide $68,000/year (44 hrs/week), and adult day care $22,000/year. The average person who needs care uses it for about 3 years, making the total cost $192,000–$348,000 depending on care type. About 70% of people turning 65 will need some form of long-term care.

National Average Long-Term Care Costs (2026)

Care Type Monthly Cost Annual Cost 3-Year Total 5-Year Total
Adult day care $1,850 $22,200 $66,600 $111,000
Homemaker services (44 hrs/week) $5,100 $61,200 $183,600 $306,000
Home health aide (44 hrs/week) $5,700 $68,400 $205,200 $342,000
Assisted living (private, 1-bedroom) $5,350 $64,200 $192,600 $321,000
Memory care (specialized) $6,000–$8,000 $72,000–$96,000 $216,000–$288,000 $360,000–$480,000
Nursing home (semi-private room) $8,700 $104,400 $313,200 $522,000
Nursing home (private room) $9,700 $116,400 $349,200 $582,000

Costs by State

Most Expensive States for Nursing Home Care (Private Room)

State Annual Private Room Annual Semi-Private Annual Assisted Living
Alaska $192,000+ $172,000+ $78,000+
Connecticut $175,000+ $160,000+ $72,000+
Massachusetts $165,000+ $148,000+ $78,000+
New York $160,000+ $140,000+ $68,000+
New Jersey $155,000+ $138,000+ $72,000+
California $148,000+ $130,000+ $66,000+
Hawaii $145,000+ $130,000+ $60,000+
Vermont $140,000+ $125,000+ $65,000+
Washington $138,000+ $122,000+ $72,000+
Rhode Island $135,000+ $120,000+ $64,000+

Least Expensive States for Nursing Home Care (Private Room)

State Annual Private Room Annual Semi-Private Annual Assisted Living
Oklahoma $70,000 $62,000 $44,000
Louisiana $72,000 $64,000 $42,000
Missouri $74,000 $62,000 $38,000
Texas $76,000 $65,000 $48,000
Mississippi $78,000 $68,000 $40,000
Arkansas $78,000 $66,000 $42,000
Alabama $80,000 $70,000 $42,000
Kansas $80,000 $68,000 $50,000
Iowa $82,000 $72,000 $48,000
Georgia $84,000 $74,000 $42,000

Mid-Range States

State Annual Private Room Annual Semi-Private Annual Assisted Living
Florida $110,000 $96,000 $52,000
Illinois $96,000 $84,000 $55,000
Michigan $108,000 $98,000 $50,000
Minnesota $126,000 $112,000 $56,000
Ohio $100,000 $88,000 $52,000
Pennsylvania $128,000 $112,000 $55,000
Virginia $108,000 $96,000 $62,000
Wisconsin $116,000 $102,000 $56,000
Colorado $120,000 $106,000 $58,000
North Carolina $96,000 $84,000 $48,000

How Costs Have Changed Over Time

Year Nursing Home (Private) Assisted Living Home Health Aide (44 hrs/wk)
2010 $76,000 $39,000 $44,000
2015 $92,000 $48,000 $52,000
2020 $106,000 $54,000 $58,000
2025 $112,000 $62,000 $66,000
2026 $116,000 $64,000 $68,000
Projected 2030 $132,000 $73,000 $77,000
Projected 2035 $153,000 $85,000 $89,000
Projected 2040 $177,000 $98,000 $103,000

Long-term care costs have grown at roughly 3–5% annually — faster than general inflation.

Cost Comparison: Home Care vs. Facility Care

Hours of Care Needed Per Week Home Care Annual Cost Assisted Living Annual Cost Nursing Home Annual Cost
10 hours $14,000–$17,000 N/A (facility is 24/7) N/A
20 hours $28,000–$35,000 N/A N/A
30 hours $42,000–$52,000 $64,000 N/A
40 hours $55,000–$68,000 $64,000 N/A
44 hours (standard) $61,000–$68,000 $64,000 $104,000–$116,000
60 hours $83,000–$95,000 $64,000 $104,000–$116,000
24/7 (live-in) $144,000–$175,000 $64,000 $104,000–$116,000

Key insight: Home care is cheaper at under 40 hours/week. Once care needs require more than 40–50 hours weekly, assisted living becomes more cost-effective. For 24/7 skilled care, a nursing home is often cheaper than full-time home nursing.

Hidden Costs Most People Miss

Hidden Cost Typical Amount
Home modifications (grab bars, ramps, stairlift) $5,000–$50,000
Medical equipment (hospital bed, wheelchair) $1,000–$5,000
Transportation to appointments $100–$500/month
Medication management systems $50–$200/month
Incontinence supplies $100–$300/month
Special dietary needs $100–$400/month
Companion/social engagement $50–$300/month
Care management coordination $100–$200/hour (geriatric care manager)
Respite care for family caregivers $150–$350/day
Legal/financial planning updates $200–$500/hour (elder law attorney)

What’s Included in Facility Costs

Assisted Living: Typically Included vs. Extra

Included Often Extra
Room/apartment Medication management ($200–$500/month)
Meals (usually 3/day) Higher level of personal care
Housekeeping/laundry Physical/occupational therapy
Social activities Beauty/barber services
Basic personal care (bathing, dressing) Private transportation
24/7 staff availability Additional companion services
Emergency response system Incontinence care ($300–$700/month)

Nursing Home: Typically Included vs. Extra

Included Often Extra
Room and board Private telephone ($30–$50/month)
All meals and snacks Cable television
24/7 skilled nursing care Personal barber/beauty services
Medication administration Additional private-duty aide
Physical/occupational therapy Specialized wound care supplies
Social activities Personal clothing laundering
Laundry/housekeeping Non-formulary medications

The Real Cost of Care: Common Scenarios

Scenario 1: Gradual Decline (Most Common)

Phase Duration Care Type Annual Cost Phase Total
Phase 1 18 months Home care, 20 hrs/week $31,000 $46,500
Phase 2 12 months Home care, 40 hrs/week $62,000 $62,000
Phase 3 18 months Assisted living $64,000 $96,000
Phase 4 12 months Nursing home $116,000 $116,000
Total 4.5 years $320,500

Scenario 2: Sudden Event (Stroke, Fall)

Phase Duration Care Type Annual Cost Phase Total
Phase 1 3 months Hospital → skilled nursing $29,000 copay $29,000
Phase 2 24 months Nursing home $116,000 $232,000
Total 2.25 years $261,000

Scenario 3: Alzheimer’s/Dementia (Longest & Most Expensive)

Phase Duration Care Type Annual Cost Phase Total
Phase 1 24 months Home care, 20 hrs/week $31,000 $62,000
Phase 2 24 months Memory care facility $84,000 $168,000
Phase 3 36 months Nursing home $116,000 $348,000
Total 7 years $578,000

Who Pays for Long-Term Care

Source What It Covers Percentage of LTC Spending
Medicaid Nursing home, some home care (for those who qualify) ~42%
Out-of-pocket Any care (self-funded) ~25%
Private insurance (LTC, hybrid, life) Any care (per policy) ~11%
Other public sources VA, state programs ~11%
Medicare Short-term skilled nursing only (up to 100 days) ~8%
Other private Health insurance, charities ~3%

The stunning reality: Despite being the largest single payer, Medicaid only covers people who have spent down nearly all their assets to qualify.

How to Estimate Your Costs

Factor How to Estimate
1. Your state’s costs Look up Genworth Cost of Care Survey for your area
2. Expected care type Home care is most likely first need; nursing home for severe decline
3. Duration estimate Average is 3 years; 20% need 5+ years; dementia averages 7+ years
4. Inflation factor Add 3–5% per year from now until likely care age
5. Spouse needs Both spouses may need care (not simultaneously usually)
6. Existing resources Medicare (100 days max), VA benefits, family caregiving

Quick Estimation Formula

Estimated cost = Monthly cost × Months of care × Inflation factor

If you need care in… Inflation multiplier (at 3%/year)
5 years 1.16
10 years 1.34
15 years 1.56
20 years 1.81
25 years 2.09
30 years 2.43

Example: 55-year-old estimating assisted living at 80: $5,350/month × 36 months × 2.09 = $402,000

Bottom Line

Long-term care costs are staggering — $192,000–$580,000 for a typical care journey — and they’re growing 3–5% annually. Medicare doesn’t cover custodial care. Medicaid requires near-poverty to qualify. The earlier you plan, the more affordable your options. Whether you choose insurance, self-funding, or Medicaid planning, the worst strategy is hoping you won’t need care — because statistically, you probably will.

Related: Nursing Home Costs | Assisted Living Costs | Home Care Costs | Paying for Long-Term Care | Long-Term Care Insurance | Medicaid Planning Guide