[Last updated May 22, 2024]
While most seniors would prefer to age in place in their current homes indefinitely, roughly two-thirds will eventually need assistance managing their daily routines. Nursing homes are one possible senior care option, providing around-the-clock care for residents who require assistance with activities of daily living, such as bathing, toileting, and eating. Read on to learn more about what a nursing home is, including services provided, costs, and payment options.
About nursing homes
Also referred to as a skilled nursing facility (SNF) or a long-term care facility, a nursing home is a residential senior living option for those needing assistance with activities of daily living (ADLs) and instrumental activities of daily living (IADLs). Its primary purpose is to provide medical care and ancillary support for individuals requiring 24-hour supervision due to physical or cognitive impairments.
The level of care a nursing home provides differs from that of assisted living facilities, which offer less intensive, nonmedical care and support in a retirement community environment. Assisted living is better suited for relatively independent individuals who may need some assistance with specific tasks.
Once they move in, a nursing home resident can expect to receive diverse nonmedical services to support their daily needs. Their individualized care plan may include assistance with personal care tasks, including bathing, dressing, grooming, toileting, medication management, meal preparation, and ambulation. In addition to meals, they will also have access to engagement and socialization opportunities.
Unlike many assisted living facilities, nursing homes also provide skilled nursing services, such as wound care, medication administration, physical therapy, and other specialized care on an as-needed basis. A nursing home aims to ensure that residents are well cared for and can maintain their quality of life with supervision provided by trained health care professionals in a safe and supportive environment.
Qualifying for a nursing home
To qualify for placement in a nursing home, individuals must typically meet specific criteria related to their care needs and medical condition. While these criteria can vary by state, individuals must require a level of care that cannot be provided at home or in a less intensive setting.
While a nursing home stay offers many potential benefits, these facilities are best suited for individuals who need 24-hour supervision and medical attention in a residential setting. Qualifying candidates may include those with chronic medical conditions, physical disabilities, or cognitive impairments, such as dementia or Alzheimer’s disease, or those recovering from surgery or hospitalization.
How much does a nursing home cost?
The cost of nursing home care can vary depending on several factors, including the facility’s location, the level of care needed, and whether you have a private or semiprivate room. On average, a nursing home stay can range from $5,000 to $10,000 per month, with the national median for a semiprivate room costing over $8,000 a month. Private rooms typically cost more than semiprivate ones, offering more privacy and personal space. Additionally, residents requiring specialized care or services, such as memory care or speech therapy, may incur additional costs.
How to pay for a nursing home stay
While considering long-term care options, paying for nursing home care can be a significant financial burden for many individuals and families. Fortunately, there are several ways to cover the costs of a nursing home stay.
Private pay
Some nursing home residents use their personal savings, retirement funds, or investments to cover the costs. Others sell hard assets, such as a home or car, to help finance their care. Individuals waiting for the proceeds of a home sale may be able to obtain a bridge loan to pay for immediate care while awaiting a more permanent funding source.
Long-term care insurance
Long-term care insurance can help offset the cost of nursing home care. These policies often cover the expenses of long-term care services, including those provided in a residential facility.
Medicaid
Medicaid may help cover the cost of nursing home care for individuals with limited financial resources. While eligibility requirements vary by state, they typically include income and asset limits. The person must also require a nursing home level of care to qualify for Medicaid coverage of nursing home costs.
Veterans benefits
Individuals who served in the military may be eligible for benefits through the Department of Veterans Affairs (VA). VA benefits like the Aid and Attendance benefit can help cover the cost of a nursing home room for eligible Veterans and spouses.
Medicare
Contrary to what you might believe, Medicare typically does not cover long-term care in a nursing home. However, it may provide time-limited skilled nursing care coverage following a hospital stay. Medicare Part A covers up to 100 days of skilled nursing care per benefit period, with specific requirements and limitations.
Additionally, some expenses may be tax deductible when a loved one receives care in a nursing home. Your family should consult a tax advisor or financial planner to determine whether you meet the eligibility requirements.
As one senior living option, a nursing home is a residential care facility that provides comprehensive services for individuals who require around-the-clock assistance with ADLs and IADLs. From personal care assistance to 24-hour medical care, nursing homes offer a range of services to help residents maintain their dignity and quality of life. Families that explore their long-term care options and plan together are better equipped to make informed decisions — ones that help ensure their aging loved ones’ wishes are honored. Knowing the details about nursing homes can help you decide if it is the right choice for you or a loved one.
