Part of our guide: Long-Term Care Insurance: Costs, Options and Planning →
No one can predict whether they’ll need long-term care, but the cost of it is predictable enough to plan for. Here’s what care costs today and what clients often get wrong about who pays.
Key takeaways
- In 2025, national median costs were $74,400 a year for assisted living and about $129,600 a year for a private nursing home room.
- In-home care ran $35 an hour at the median, about $80,000 a year at 44 hours a week.
- Medicare doesn’t pay for most long-term care, and relying on Medicaid means spending down assets and limited choice.
Assisted living: $74,400 a year. Private nursing room: about $129,600. In-home care: about $80,000 a year at 44 hours a week. (2025 national medians)
What care costs in 2025
- Nursing home, private room: $10,798 a month (about $129,600 a year)
- Assisted living: $6,200 a month ($74,400 a year)
- In-home care: $35 an hour (about $80,080 a year at 44 hours a week)
Source: CareScout 2025 Cost of Care Survey, national medians. Costs vary widely by state and city, so check local figures. Trends over time are in our cost of care summary.
The Medicare misconception
Many clients assume Medicare will cover long-term care. It covers only limited skilled care, not ongoing help with daily living. Medicaid does pay for long-term care, but only after most assets are spent down, and provider choices can be more limited.
Where insurance fits
Long-term care insurance, including hybrid products, pays for assisted living, home care, and nursing home care so clients can get the care they want without draining savings or burdening family. Our LTC team can quote options based on your client’s location and budget.
Frequently asked questions
How much does assisted living cost per month in 2025?
The national median was $6,200 a month ($74,400 a year), according to CareScout’s 2025 Cost of Care Survey.
How much does a nursing home cost per year?
A private room had a 2025 national median of $10,798 a month, or about $129,600 a year.
Does Medicare pay for assisted living?
No. Medicare doesn’t cover assisted living or most long-term custodial care.
Reviewed by Tim Fuller on 2026-09-25
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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