The financial burden of long-term care in the U.S. has reached crisis levels, with families spending hundreds of thousands of dollars to cover medical and assisted living needs. Tamara Johnson, a 58-year-old former executive, estimates her family spent over $700,000 on care for her mother and husband over several years. Johnson left her job in 2024 to provide full-time care after her husband suffered multiple medical emergencies, relying on savings and deferred compensation to cover expenses.
Eldercare costs have outpaced inflation for decades, with nursing homes, assisted living facilities, and at-home care services seeing price increases far exceeding those of food, housing, and utilities. The average annual cost of a private nursing home room now exceeds $110,000, while assisted living facilities average $60,000 per year, according to industry data. These expenses have forced some families to compromise on care quality, opting for lower-rated facilities or reduced services to manage costs.
Johnson’s experience reflects a broader trend: millions of Americans are unprepared for long-term care expenses, with many draining savings, retirement funds, or relying on family members to fill gaps. A 2023 report by the U.S. Department of Health and Human Services found that only 12% of adults aged 65 or older have long-term care insurance, leaving most to cover costs out-of-pocket. The financial strain has led to career disruptions, with caregivers like Johnson forced to leave jobs or reduce work hours to meet care demands.
The crisis extends beyond older adults, affecting younger individuals with disabilities or chronic illnesses who require long-term support. Home health aides now cost an average of $30 per hour, while specialized memory care units can exceed $10,000 per month. These prices have risen steadily since 2010, with annual increases outpacing wage growth for care workers, exacerbating labor shortages in the industry.
Policy experts warn that without structural changes, the burden will continue to fall on families. Medicare covers only short-term rehabilitation stays, and Medicaid eligibility varies by state, often requiring individuals to deplete most assets before qualifying. Proposals to expand federal support, such as the Build Back Better Act’s proposed $150 billion for home- and community-based care, have stalled in Congress, leaving many without viable solutions.
For Johnson, the financial and emotional toll has been severe. "I felt like I didn't have the luxury of falling apart," she said. "If I fell apart, then who would pick up the slack?" Her story underscores the human cost of a system where long-term care remains a personal crisis rather than a shared responsibility.