By Robert Moore, Attorney and Research Specialist, OSU Agricultural and Resource Law Program
The costs for assisted living and nursing home care have steadily been increasing. Many people find themselves in the situation where their income will not cover the costs of long-term care. Long-term care costs have become a significant risk to Ohio farms and the ability to continue a viable farming operation for future generations.
The following are the most recent long-term care costs from a Genworth survey:
Type of Care Annual Cost
Ohio Semi - Private Room $85,776
Ohio - Private Room $98,556
National – Semi-Private Room $93,075
National – Private Room $105,850
Ohio - Assisted Living $52,500
National - Assisted Living $54,000
Ohio costs are less than national costs but are still significant. Care facilities in small towns and rural areas tend to cost less than facilities in larger cities like Cleveland, Columbus and Cincinnati. Costs are expected to continue to increase. By 2030, Genworth predicts that national average cost for a private room in a nursing home will be around $142,000/year.
Farmers that do not have adequate income to pay for long-term care costs will be required to dip into savings to make up the deficit. If savings are extinguished, farm assets may need to be sold to pay for the care. The sale of these farm assets is what can jeopardize the future viability of the farming operation.
There are no easy solutions regarding long-term care costs. Options include gifting assets away, buying long-term care insurance or self-insuring. Medicaid can also play a role in long-term care costs. In future posts we will discuss strategies to minimize the risk of long-term care costs to farming operations.