Nursing home expenses can be borne by residents, national insurance or the care home itself. Costs vary depending on amenities and medical needs, and insurance may only cover certain ailments. Basic overhead costs are paid by the care home, and families should plan for expenses early on. Nursing homes may work with families to reduce costs.
There are three main types of care home expenses: those borne by individual residents, those borne by national health insurance or funds, and those borne by the care homes themselves. Expenses in the first two categories generally go to cover basic living costs, including rent, meals, and necessary medical care. Nursing homes generally provide full room and board for residents and often employ full-time doctors and nurses. All of this comes at a cost, which is usually charged directly to residents and their families, or to certain insurers and long-term care plans. Building maintenance costs, utilities, and staff salaries are a separate category of expenses handled by the property manager or nursing home owner.
Nursing home costs are rarely fixed and can vary from place to place. There is usually a basic cost to living expenses, but this can go up or down dramatically depending on the extra amenities and services provided. Homes with individual apartment-style living, community center operations, and sponsored treatments are often considered more luxurious – and consequently more expensive – than those with cheaper rooms and amenities. In this sense, nursing home expenses largely mirror most other living expenses. The more beautiful the structures and the community, the more expensive it is to live there.
Older people often require significantly more care than young adults in apartments or community housing, which usually affects nursing home expenses. Homes often employ medical professionals and many include regular medical checkups as an integral part of the living experience. Residents with medical conditions or who require more careful or specialized care generally have to pay more for these services.
In some places, medical insurance will cover a portion of nursing home expenses. However, insurance typically only covers a certain range of ailments and often only provides payments up to a certain amount. More often than not, the money is awarded to offset some medical treatment, but room and board is still up to the individual resident. Countries with nationalized healthcare often provide some cheaper options for living in a nursing home, but space is often limited and benefits are not always transferred to private facilities.
The most basic overhead costs, including reception staff and cleaning services, utilities and regular building maintenance, are usually paid for by the care home itself. Many of these costs are included in each resident’s bill, but are usually not apportioned. Nursing homes typically make a profit, but they also need to have cash on hand to pay for things like unexpected repairs, appliance replacements, and necessary upgrades.
Estimating home care expenses is often difficult to calculate. Costs typically rise every year, and as residents get older, they often need more and more services as well. Families are often advised to plan for nursing home expenses as they would for any other financial obligation. Building a nursing home expense calculation into early life savings is often the best way, but even a late-life budget is better than nothing.
Nursing homes are sometimes willing to work with troubled families to find ways to reduce expenses. Sometimes this is as simple as paying your nursing home bills on a monthly or quarterly basis rather than up front for the year. Other times it involves referrals to government agencies or charitable groups dedicated to providing care for low-income seniors.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
