Tuesday, June 19, 2012

Nursing Home Costs

A growing percentage of people aged 65 or older are experiencing nursing home stays. According to a report by the Employee Benefit Research Institute, 8.5 percent of Americans aged 65 or older had a nursing home stay in 2010, up from 6.0 percent in 2000.

Because only 14 percent of older Americans who enter a nursing home are covered by long-term care insurance, a stay in a nursing home depletes household wealth. The median household net worth of people aged 65 or older who experienced a stay in a nursing home was $102,073 before entry. After six months in a nursing home, median net worth was just $5,518.

Source: Employee Benefit Research Institute, Effects of Nursing Home Stays on Household Portfolios

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