Caring in America
With Podcast Host: Richard Wexler
Episode 121
The Real Cost of Care – and Why Planning Matters More Than Ever
A recent episode of Caring in America brought a sobering but necessary conversation to the forefront: the true cost of care as we age. In Episode 121, Richard Wexler and Steph Baierl continue their discussion on The Home Team—focusing not just on care options, but what those options actually cost—and how families can realistically prepare.
Care Is Not “If”- It’s “When”
Richard puts it plainly:
About 95% of us will need some form of care as we age.
That care could range from a few hours of help each week during a recovery, to years of full-time support. The challenge? Most families aren’t financially or emotionally prepared for what comes next.
What Does Care Really Cost?
In-Home Care
- National average: ~$40/hour
- Major metro areas: ~$50+/hour
- Monthly costs vary widely depending on hours needed
Even part-time care can quickly add up. Full-time care? It can rival or exceed the cost of institutional care.
Senior Living Communities
- Base cost: ~$5,000/month
- Larger cities: $6,000–$9,000+
- Additional care services: Extra
What many don’t realize is that the base rent is just the starting point.
The more care needed, the higher the total monthly cost.
Memory Care (Dementia/Alzheimer’s Support)
- Average: $10,000–$12,000/month
- Some regions (like Boston): $15,000+
- Additional in-home support may still be needed
In some cases, families face dual costs- paying for both a memory care facility and supplemental in-home care- pushing totals beyond $20,000/month.
How Do Families Actually Pay for Care?
Steph raises the question most people are thinking:
Who can afford this?
Richard outlines several common strategies:
1. Personal Savings (“The Piggy Bank”)
What resources does the individual already have?
2. Family Contributions
Adult children or loved ones often help bridge financial gaps.
3. Home Equity
Options like reverse mortgages allow families to tap into the value of a home.
4. Long-Term Care Insurance
If purchased early enough, this can significantly offset costs.
5. Life Insurance Settlements
Policies (typically $100,000+) can sometimes be converted into cash for care expenses.
A Critical Misconception: Medicare
One of the biggest myths?
That Medicare will cover long-term care.
It won’t.
Medicare may cover:
- Hospital stays
- Short-term skilled nursing (with conditions)
- Medical equipment
But it does not pay for:
- Long-term in-home care
- Assisted living
- Memory care
This misunderstanding leaves many families unprepared when care is suddenly needed.
When Money Runs Out: The Family Steps In
For millions of families, professional care simply isn’t affordable long-term.
That leaves one option:
Family caregivers.
What That Really Means:
- Adult children relocating or traveling frequently
- Balancing careers, children, and caregiving
- Emotional and financial strain
And in many cases, families don’t live close enough to step in easily- making planning even more critical.
The Bottom Line
Care is expensive.
It’s emotional.
And for most people—it’s unavoidable.
The question isn’t whether you’ll face these decisions.
It’s whether you’ll be prepared when you do.
Start Planning Today
If this episode sparked questions—or even a bit of concern—that’s a good thing. Awareness is the first step.
Take time to:
- Talk with your family
- Explore financial options
- Connect with professionals
Because when it comes to aging and care, planning ahead isn’t optional- it’s essential.
Why The Home Team Exists
The mission behind The Home Team is simple:
Educate families early…before a crisis happens.
By bringing together trusted professionals-from financial planners to care specialists-families can:
- Understand their options
- Prepare financially
- Make informed decisions with clarity, not urgency
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Our country is entering a new chapter, one we have never seen before… over 100 million people are 50 years of age or older, and the need for care is going to be more and more prevalent. We are dreaming of a nation where aging and care are understood and become part of our normal conversations with family.
To make this a reality, we need your help!