Long-Term Care Costs & Insurance Premiums by Age (2025)
7 in 10 Americans turning 65 will need long-term care. The national median cost of a nursing home private room has reached $127,750/year. Here's everything you need to plan — care costs, insurance premiums by age, and what Medicare covers (and doesn't).
Long-Term Care: The Need & The Cost (2024–25)
Data from Genworth's annual Cost of Care Survey (partnership with CareScout), the most comprehensive LTC cost study in the U.S. The 2025 CareScout survey covered 15,000+ providers; the 2024 Genworth/CareScout survey contacted 140,000+ providers.
Care Cost by Setting
Source: CareScout 2025
Source: CareScout 2025
Source: Genworth/CareScout 2024
Medicare Does NOT Cover Long-Term Custodial Care: Medicare covers short-term skilled nursing after hospitalization (up to 100 days). It does not cover custodial care — the type needed when someone requires help with daily activities like bathing, dressing, or eating. Medicaid covers LTC only after assets are nearly exhausted. This is the primary financial risk of longevity.
Annual Long-Term Care Costs by Setting (2024–25)
| Care Setting | Annual Median (2024–25) | Monthly | Daily/ Hourly | YoY Change | Coverage Notes |
|---|---|---|---|---|---|
| Nursing Home — Private Room | $127,750–$129,575 | $10,646–$10,798 | $350–$355/day | +9% (2024) | Medicare: short-term only; Medicaid: if eligible |
| Nursing Home — Semi-Private | $111,325 | $9,277 | ~$305/day | +7% (2024) | Medicaid most common payer |
| Assisted Living Community | $70,800–$74,400 | $5,900–$6,200 | ~$196/day | +5% (2025) | Private pay, LTCi; not Medicare/Medicaid typically |
| Home Care — Non-Medical (44 hrs/wk) | $75,504–$80,080 | $6,292–$6,673 | $33–$35/hr | +3–10% | Private pay, LTCi; some Medicaid waivers |
| Adult Day Health Care | $26,000 | $2,167 | ~$100/day | Stable | Some Medicaid; sliding-scale common |
Sources: Genworth/CareScout Cost of Care Survey 2024 (released March 2025; 140,000+ providers); CareScout Cost of Care Survey 2025 (July–Nov 2025). VeritasRM (June 2025) citing both surveys.
Annual LTC Cost by Care Setting — National Medians (2024–25)
Source: Genworth/CareScout Cost of Care Survey 2024 & 2025 · Plootus Research 2025
LTC Insurance Tax Deductibility (2025)
Premiums paid for tax-qualified LTC insurance policies may be deductible as medical expenses if you itemize. The IRS sets age-based annual limits on deductible premiums, adjusted annually.
| Age Range (Tax Year End) | 2025 Max Deductible Premium | Notes |
|---|---|---|
| Age 40 or younger | $480 | Must itemize; total medical expenses must exceed 7.5% of AGI |
| Age 41–50 | $900 | Same conditions apply |
| Age 51–60 | $1,800 | Same conditions apply |
| Age 61–70 | $4,810 | Significant benefit for most buyers in this age range |
| Age 71 and older | $6,020 | Highest deduction limit — most advantageous age bracket |
Source: IRS 2025 Tax-Deductible Limits for Qualified LTC Insurance Premiums (AALTCI; VeritasRM June 2025). Self-employed individuals may deduct 100% of eligible premiums without itemizing. Consult a tax professional.
How to Plan for Long-Term Care Costs
- 1
Buy Earlier for Lower Premiums
The single most impactful decision is timing. A policy bought at age 55 vs. 65 can cost less than half as much annually. Waiting also increases the risk of being declined — a significant health event can make you uninsurable. Most financial planners suggest considering LTC insurance between ages 55–65.
- 2
Understand What Medicare Does — and Doesn't — Cover
Medicare covers skilled nursing care for up to 100 days after a qualifying 3-day hospital stay — but only if you need skilled care. It does NOT cover custodial care (help with daily activities) which is the most common LTC need. Medicaid covers LTC only after you have spent down most assets. Source: Medicare.gov (2025).
- 3
Consider Hybrid Life/LTC Policies
Hybrid policies combine life insurance (or annuity) with LTC benefits. You don't lose premiums if you never need LTC — the death benefit pays your heirs instead. They've grown significantly as traditional standalone LTC policies have become harder to buy. Generally require a lump-sum or limited-pay premium structure.
- 4
Self-Insure With a Dedicated Fund
If you have significant assets ($1M+), self-insurance may be an option: invest a dedicated portfolio specifically for potential LTC needs. The national median LTC need is about 3 years; a $200,000–$400,000 dedicated fund (starting from age 55) may be sufficient for many middle-income needs. This avoids insurance risk and premium increases.
- 5
Home Care Is Often the Preference — and More Affordable
Most Americans prefer to receive care at home. Home care (non-medical caregiver, 44 hrs/week) costs a national median of $80,080/year — less than nursing home care, and often eligible for family caregiver arrangements. A smaller LTC policy covering home care only can be significantly less expensive.
- 6
Have the LTC Conversation Early
Nearly 70% of Americans say they haven't talked about LTC planning with family. Starting the conversation at age 50–55 — when healthy — allows time to explore options, understand family care preferences, and make financial arrangements before a crisis occurs.
Long-Term Care FAQ
Sources
Genworth/CareScout Cost of Care Survey 2024 (released March 2025; 140,000+ providers) · CareScout Cost of Care Survey 2025 (July–Nov 2025) · AALTCI 2024 Annual Price Index survey (referenced by NCOA, Nationwide, Aug 2024) · KFF Health News (2023) for LTC insurance coverage rate · HHS/ACL LTC statistics · IRS 2025 Tax-Deductible Limits for Qualified LTC Insurance Premiums · VeritasRM (June 2025)
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