Median Cost of Nursing Home Care

According to our research team’s analysis of the latest available data:

• The nationwide median cost of a private room in a nursing home is $297 per day ($9,034 per month or $108,405 per year).
• A semi-private room in a nursing home costs an average of $260 per day or $7,908 per month.
• Alaska has the most expensive nursing home care costs in the U.S., while Missouri has the least expensive.
• 60% of people in nursing homes are covered by Medicaid.
• Medicare pays for 100% of beneficiaries’ nursing home costs for the first 20 days under specific circumstances.

Continue reading for breakdowns by state, room type, and more.

While you may want to know the average cost of living in a nursing home, it is more sound to consider the median cost instead. Averages can be misleading in areas with many luxury nursing homes or several budget-friendly options. A high number of either can skew data.

The national median daily cost for a private room in a nursing home was $297 per day, according to the Genworth Cost of Care Survey. The survey also shows the median cost from a monthly or annual view. The national median cost for a private room in a nursing home was $9,034 per month, as noted by the survey.

Note: Unless otherwise indicated, all subsequent cost information references the Genworth survey.

Long-term nursing home stays

More than half of nursing home residents spend at least one year in a nursing home, while 21% live in a nursing home for more than five years, according to the Health in Aging Foundation. If a person spends one year in a nursing home, it would cost around $108,405 annually.

Short-term nursing home stays

However, those utilizing nursing homes for end-of-life support or rehabilitation care may spend substantially less time in one. Roughly 25% of nursing home residents stay for three months or less, as explained by the Health in Aging Foundation. A three-month stay would cost around $27,102.

Rising nursing home costs

Additionally, the cost of nursing home care has steadily increased during the last ten years. From 2011 to 2021, the median national cost of a private room in a nursing home has risen by almost 40%, from $77,745 to $108,405.

As of 2016, there were 15,600 nursing homes with 1.7 million licensed beds in the U.S., according to the National Center for Health Statistics at the Centers for Disease Control and Prevention. These communities housed more than 1.3 million residents as of 2015.

Nursing homes can offer different options and features, and these differences can drastically change the cost of each home. Seniors may have the opportunity to choose options that better fit their budget and individual needs, depending upon the homes in their area.

Luxury vs. budget

With the rising trend of luxury senior living, seniors can choose to pay a premium to reside in a community that curates a luxurious senior-friendly lifestyle in opulent surroundings. This phenomenon is especially noticeable in major metros, such as New York City.

Nursing homes can also range from budget-conscious to high-end. A high-priced nursing home may be more than $30,000 a month for a single room, while a more affordable, shared room option may be around $5,000 a month.

Keep in mind that nursing home expenses may be tax deductible in some situations. You may also want to compare the costs of nursing homes vs. home care to see which fits your budget better.

Private room vs. semi-private room

Choosing to live by yourself or in a shared space with another person can make a big difference in the cost of nursing home care. Typically, it is more expensive to select a private room. In 2021, the national monthly median cost for a private nursing home room was $9,034 while the national monthly median cost for a semi-private nursing home room was $7,908. That is a more than 12% difference between a private and a semi-private room.

For-profit vs. state-operated nursing homes

There are for-profit and state-operated nursing home options. As of 2016, 69.3% of nursing homes in the U.S. were for-profit, according to the National Center for Health Statistics at the Centers for Disease Control and Prevention. State-operated homes may offer savings in comparison to for-profit nursing homes. However, state-operated homes may not be available to all people.

State Veterans Homes, which usually provide skilled nursing like nursing homes, are typically only open to eligible people such as veterans, non-veteran spouses, and gold star parents, according to the Department of Veterans Affairs. It’s important to note that, because these homes are operated by individual states, each state determines eligibility and admission standards.

The cost at each State Veterans Home varies. A State Veterans Home may receive funding from the VA to help offset costs. This may mean veterans pay a lower-than-average cost to access care in some states.

Cost-per-service breakdown

You can ask a nursing home for a cost-per-service breakdown. The amounts can vary greatly based on location, amenities, programs, services, and more.

A cost-per-service breakdown may outline the costs of room and board, on-site medical care, on-site mental health counseling, transportation fees to off-site medical care, activities fees, recreation fees, and entertainment fees.

Can you afford senior living?

Location plays a major role in nursing home costs because the cost of living can vary significantly from state to state.

The top five most expensive states for nursing home care in 2021 were as follows:

1. Alaska
2. Connecticut
3. Hawaii
4. Massachusetts
5. New York

The top five least expensive states were as follows:

1. Missouri
2. Louisiana
3. Oklahoma
4. Arkansas
5. Kansas

Learn more about nursing home costs in all 50 states and the District of Columbia in the table below.

**Missouri Economic Research and Information Center

From 2012 to 2016, 13.8% of people 65 years and older resided in urban areas, as noted by the United States Census Bureau. Just like states, nursing home costs vary from city to city. Local wages, availability of nursing home staff, cost of living, and other factors also influence the costs of nursing homes in these urban areas.

The table below highlights highly populated metro areas in the U.S. Some metros are above and some are below the nationwide median costs for nursing home care.

From the above dataset, the New Orleans Area, St. Louis, and the San Antonio Area represent metros with less expensive median costs of nursing home care.

Meanwhile, the San Jose Area, the Hartford Area, and the Boston Area had some of the most expensive costs in the above data set.

Expert advice for affordable senior living

When it becomes clear that a loved one requires extra support, families may consider a variety of senior care options to meet their loved one’s unique needs. As shown in the table below, these costs vary based on the care type.

Nursing home care, as shown above, is typically one of the most expensive forms of senior care in the U.S. A nursing home costs about $112 more a day than an assisted living facility, based on the nationwide median daily cost data.

Hourly wages for home care

For those who want to stay in their home longer, they may utilize homemaker services and home health aides. These services may be employed on an hourly basis. The national hourly median cost for homemaker services was $26 per hour while home health aide services were $27 per hour. A full day of care at these hourly rates translates to $648 and $624, respectively. Homemaker services are $24 less per day than a 24-hour home health aide for a difference of $168 a week.

Agencies or independent in-home nurses or caregivers may charge additional fees that may not be accounted for in an hourly wage estimation. Hourly wages may vary based on location, caregiver qualifications, assigned duties, and more.

Preventative care costs

Preventative care costs vary based on an individual’s overall health, chronic conditions, insurance coverage, and other factors. As of 2008, about 80% of people 65 years or older had at least one chronic health condition and nearly 50% of people in the same age group had at least two chronic health conditions, according to the Centers for Disease Control and Prevention.

Of the $4.1 trillion spent annually on health care in the U.S., 90% of that money is spent on health care for people with chronic and mental health conditions, according to the National Center for Chronic Disease Prevention and Health Promotion. However, it’s difficult to break down these expenditures on a person-by-person basis because each person’s medical situation may be different.

The National Center for Health Statistics at the Centers for Disease Control and Prevention has periodically conducted a National Nursing Home Survey since 1973, which provides valuable insights into the nation’s nursing homes.

Biological sex

The latest survey, conducted in 2004, showed that residents were overwhelmingly female (roughly 71% of residents). This may be attributed to females generally living longer than their male counterparts, as noted in life expectancy data from the Center for Disease Control and Prevention.

Additionally, the lifetime potential of nursing home use by females (64%) is significantly higher than their male counterparts, according to a 2017 study. Older females may end up spending more than their male counterparts on senior living because of these disparities.

Race

The 2004 survey showed that roughly 85% of nursing home residents identified as white, while roughly 12% identified as black. Less than 5% of nursing home residents identified as other races. These percentages are similar to the general U.S. population from this time period.

Researchers at the University of Minnesota School of Public Health suggest that there may be racial disparities when it comes to quality of life in nursing homes. Black, indigenous, and persons of color reported lower levels of satisfaction than their white peers in aspects of nursing home life, including food enjoyment, social engagement, and attention from the staff.

It’s challenging to determine if this affects choosing to enter a nursing home, the length of stay at a nursing home, or expenditures for nursing home care for those who identify as black, indigenous, or a person of color.

Marital status

People who have been widowed make up the majority of nursing home residents (roughly 53%), according to a 2004 survey. Meanwhile, roughly 10% of residents were divorced and approximately 14% of residents were single or never married.

From this data, it appears that people who are without a marital partner (widowed, divorced, single, or never married) are more likely to end up in a nursing home than their married counterparts. Lacking a spouse may influence a family’s decision to have a loved one enter a nursing home. If a spouse is alive and in good physical condition, they may choose to care for the loved one at home with the support of home health care.

Those without a marital partner may end up spending more on nursing home care than their married counterparts.  This could be due to the fact that married couples may be able to perform supportive tasks for each other.

Age

The world is growing increasingly older, with a projected eightfold population increase of centenarians — people 100 years or older — by 2050, according to the Pew Research Center. The nursing home population reflects this changing world with 15% of people 85 years and older living in nursing homes compared to only 1.1% of people 65 to 74 years old, as noted by the Health in Aging Foundation.

Advanced age appears to play a role in the need for nursing home care and may influence the overall cost of nursing home care incurred by adults 85 and older.  This may be due to chronic conditions, such as dementia, that are more likely to develop with advanced age.

People in the U.S. have a 56% chance of entering a nursing home at some point. While this number may seem high, it’s important to keep in mind that short-term stays at nursing homes have been increasing and may account for that high percentage. The study also indicated that only 5% of those people will need long-term stays.

Cost to private individuals

It is projected that people between the ages of 57 and 61 will spend at least one night in a nursing home. However, only 32% of these individuals will end up with out-of-pocket costs for nursing home care. 43% of all people who stay in a nursing home have their stay completely covered by public or private insurance.

Long-term care insurance and Medicaid may limit the out-of-pocket expenses for seniors in need of nursing home care. However, only 10.5% of people 60 or older have long-term care insurance. The burden may largely fall on public sources.

Private funds used to pay for nursing home care may include:

• Money gifted by family members
• Funds from personal savings, IRAs, and reverse mortgages
• Other retirement savings or benefits
• Life insurance

Private vs. public funding

While current spending information is difficult to track, there are available funding projections. These are typically based on historical data over time. As of 2015, the following projections were made by the Department of Health and Human Services. It shows the projected spending by public versus private sources for people turning age 65 years old in 2015 to 2019 from the age of 65 through the end of their lives.

The above projections highlight the heavy reliance upon public funding and Medicaid, in particular, to cover the cost of nursing facilities in the United States.

Nursing home costs paid by taxpayers

Medicaid. This federal and state government program covers health care services, including long-term care costs, for eligible low-income individuals under certain circumstances. Medicaid offers health care coverage to 1 in 5 Americans — more than 70 million individuals. Additionally, 60% of people in nursing homes are covered by Medicaid. Initially, income limits make it challenging for some people to qualify for Medicaid. After they have exhausted their private funds, they may qualify.

Medicare. Under very specific conditions, Medicare may also help pay for nursing care. Through Original Medicare, nursing care is mainly approved for rehabilitative stays after a hospitalization. Original Medicare pays 100% of the cost for the first 20 days, but from day 21 to day 100, an individual will be responsible for a daily copayment. Though, this structure of cost-sharing can vary greatly depending on whether an individual has a Medigap and Medicare Advantage plan.

Veterans benefits. Eligible veterans may qualify for long-term care services through the Department of Veterans Affairs (VA). Covered nursing homes and facilities may be operated by the VA, individual states, or approved and inspected community organizations. A veteran’s VA health care coverage is dependent on many factors and can vary greatly from person to person. Veterans can also pair their VA health care coverage with that from other providers, public and private, such as Medicaid, Medicare, or a private insurance policy.