Costs for home care and assisted living services in the US have surged nearly 50% from 2019 to 2024, significantly outpacing median income growth for senior households. The AARP report highlights a growing affordability crisis, with adult day service costs jumping 33% and nursing home care up 25%.
Many families are unprepared for these escalating expenses. Over half of adults aged 65 will need long-term care, yet a 2022 AARP survey found many mistakenly believe Medicare covers these services, which it does not. Medicaid offers assistance for low-income individuals, but middle-income families face substantial out-of-pocket costs, with some exceeding $100,000 annually.
Experts attribute the cost surge to factors including increased Medicaid assistance during the pandemic, minimum wage hikes, and labor shortages exacerbated by immigration policy changes. These rising expenses disproportionately impact those paying privately, creating a significant financial squeeze on the middle class.
Average annual care costs range from $26,000 for adult day services to over $127,000 for private nursing home care. These figures are difficult to manage for seniors relying on average Social Security benefits and household incomes. AARP calls this a "breaking point" for families, warning that many may be forced to go without essential services.