Nursing Home Cost & Medicaid Burn-Down
Nursing Home Cost & Medicaid Burn-Down
Project how long your savings last paying for long-term care, and when Medicaid planning becomes urgent.
| Year | Annual cost | Remaining savings |
|---|---|---|
| 1 | $108,000 | $118,400 |
| 2 | $112,320 | $32,480 |
| 3 | $116,813 | $-57,933 |
Savings deplete in year 3. Start Medicaid planning (asset protection, 5-year look-back) well before this point.
Simplified projection. Real planning should include inflation, spousal impoverishment rules, home equity, and state Medicaid thresholds — consult an elder-law attorney.
Frequently Asked Questions
Why does Medicaid planning matter?+
Medicaid pays for long-term nursing home care for those who qualify — but eligibility has strict asset and income limits plus a 5-year look-back on asset transfers.
When should I start Medicaid planning?+
At least 5 years before anticipated need. Consult an elder-law attorney.
Does Medicare pay any of this cost?+
Medicare covers up to 100 days of skilled care after a qualifying hospital stay — not long-term custodial care.
Is my home counted against Medicaid?+
The primary residence is partially protected under federal home-equity limits and spousal impoverishment rules, but estate recovery may apply after death. State rules vary.