What You Need to Know
- Most cost survey teams post the median cost figures.
- Half of the care providers have prices over the median level.
- The price of assisted living facilities can vary especially widely.
There are many published reports of the median cost of long-term care (LTC) services available. Yes, costs do vary around the country, and must be taken into consideration — especially if your client may be planning to move in retirement.
However, my focus today is on the term “median cost.”
Here are five reasons why median cost figures can be misleading.
1. Median Cost
“Median cost” means half of the costs will be below the median and half will be above. The median auto accident is $7,500, how much liability insurance do you carry?
Thus, if the median cost of a nursing home is $8,821 per month, according to one survey, this means there may be some charging $6,450 per month and some charging $11,192 per month. This does not even begin to address the different needs of various residents.
2. Unusually Bad Circumstances
I, personally, have $100,000 of liability insurance on my autos, and a $1 million umbrella over top of that, despite the median auto accident costing only $7,500.
An attorney friend of mine says the worst possible accident is running into a van full of lawyers, but we won’t go there.