If you’ve looked into long-term care lately — for a parent, a spouse, or yourself — you already know the numbers are staggering. What you may not realize is just how fast those numbers have climbed, and how far out of reach care has become for millions of American families over just the past few years.
A brand-new report from AARP (March 2026) found that home care and assisted living costs surged nearly 50 percent between 2019 and 2024. Meanwhile, household income for adults 65 and older grew by only 22 percent over that same period. The gap between what care costs and what families can afford is widening fast — and there’s no sign of it slowing down.
Here’s a clear picture of what care actually costs today, how those costs have changed, and — importantly — what options are available to help cover them.
The Big Picture: What Long-Term Care Costs in 2026
There are several types of long-term care, and costs vary significantly based on the setting. According to the most recent CareScout/Genworth Cost of Care Survey — the most comprehensive study of its kind, conducted annually since 2004 — here is where national median costs stand today:
| Type of Care | Monthly Cost | Annual Cost |
|---|---|---|
| Adult Day Care | ~$2,058 | ~$24,700 |
| In-Home Caregiver (non-medical) | ~$6,673 | ~$80,080 |
| Assisted Living Facility | $6,200 | $74,400 |
| Memory Care | ~$7,000–$8,500 | ~$84,000–$102,000 |
| Nursing Home (Semi-Private Room) | $9,581 | $114,975 |
| Nursing Home (Private Room) | $10,798 | $129,575 |
Sources: CareScout Cost of Care Survey 2025 (published 2026); Genworth Cost of Care Survey 2024
For context: The median household income for Americans age 65 and older is approximately $60,000 per year. That means a single year of assisted living costs more than most seniors earn annually — and a nursing home private room costs more than twice the median income.
How Much Have Costs Increased? A Look Back.
These numbers don’t exist in a vacuum. To understand how serious the situation has become, it helps to see where costs were just a few years ago — and how dramatically things have shifted.
Home Care and Assisted Living: Up Nearly 50% Since 2019
AARP’s March 2026 report is stark: the most frequently used forms of long-term care — home health aides and assisted living — increased by close to 50 percent between 2019 and 2024 alone. That’s not a gradual increase. That’s families being priced out of options that were, even recently, within reach.
| Care Type | 2019 (Est.) | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Home Health Aide (annual) | ~$52,000 | $75,500 | $77,792 | $80,080 |
| Assisted Living (annual) | ~$48,000 | $64,200 | $70,800 | $74,400 |
| Nursing Home – Semi-Private (annual) | ~$90,000 | $104,000 | $111,325 | $114,975 |
| Nursing Home – Private Room (annual) | ~$102,000 | $116,800 | $127,750 | $129,575 |
Sources: CareScout/Genworth Cost of Care Survey (2023, 2024, 2025); AARP Public Policy Institute (2026)
The 20-Year View: How Much Has Really Changed
Genworth has been tracking care costs annually since 2004. Looking at the full two-decade picture tells an even more sobering story. According to their research, over the 15 years from 2004 to 2018 alone:
- Assisted living facility costs rose 67 percent
- Private nursing home room costs rose 54 percent
And that was before the post-pandemic surge. From 2019 to 2024, care costs accelerated dramatically — wiping out, according to AARP, “a decade of progress” in long-term care affordability that families had gained through the 2010s.
What this means in real dollars: If a nursing home private room cost roughly $62,000 in 2004, that same type of care now runs nearly $130,000 annually — more than doubling in 20 years. At current inflation projections of 2.54% annually, that same room could cost close to $186,000 per year by 2044.
Why Are Costs Rising So Fast?
Two primary forces are driving costs up across every care type:
Labor costs. Care workers — home health aides, CNAs, assisted living staff — have seen significant wage increases. The national median hourly rate for a home caregiver is now $35 per hour. With most families needing 30–44 hours of care per week, that adds up quickly. The shortage of qualified caregivers in the U.S. has only intensified competition for workers, pushing wages higher.
Inflation. The post-pandemic inflationary environment hit long-term care providers hard. Utilities, food, insurance, and facility operating costs all rose sharply — and those increases were passed on to residents and families.
Behind both of those factors is a third reality that isn’t going away: demand. Every day until 2030, 10,000 Baby Boomers turn 65. Seven out of ten Americans will need some form of long-term care during their lifetime. The population needing care is growing faster than the infrastructure and workforce to provide it.
Where Does the Money Come From?
This is where most families are caught off guard. The assumption that Medicare covers long-term care is one of the most costly misconceptions in elder care planning.
Medicare covers short-term skilled nursing after a qualifying hospital stay — typically up to 100 days under specific conditions. It does not cover ongoing custodial care, assisted living, or most in-home personal care.
Medicaid does cover long-term care, but only after a person has spent down most of their assets to meet strict income and resource limits. For many middle-class families, the path to Medicaid means depleting a lifetime of savings first.
Private pay — meaning out-of-pocket spending — is how the vast majority of families cover long-term care initially. The median household for someone 75 and older has approximately $50,000 in financial assets. That covers roughly one year of home care, or just a few months in a nursing home.
Long-term care insurance can help, but only about 3–4% of Americans over 50 carry a policy — and premiums have risen sharply in recent years.
What About Veterans and Surviving Spouses?
This is where the conversation often changes for military families — and why we want to make sure every veteran household is aware of what may be available to them.
The VA Aid & Attendance benefit is a tax-free monthly pension designed specifically to help wartime veterans and their surviving spouses cover the cost of long-term care. It can be used for home care, assisted living, memory care, or nursing home care. And the benefit amounts are significant:
| Claimant | Monthly Benefit | Annual Benefit |
|---|---|---|
| Surviving Spouse | $1,558 | $18,694 |
| Single Veteran | $2,424 | $29,087 |
| Married Veteran | $2,874 | $34,489 |
| Two Veterans Married | $3,845 | $46,143 |
These are the 2026 rates. The benefit increases annually with Social Security’s cost-of-living adjustment — which means it grows alongside inflation, providing ongoing protection against rising care costs.
For a surviving spouse paying $6,200 per month for assisted living, the Aid & Attendance benefit covers more than 25% of that cost. For a married veteran in a memory care facility, it can offset a meaningful portion of what would otherwise be a six-figure annual expense.
Many Eligible Families Don’t Know This Benefit Exists
Aid & Attendance has been available since the 1980s, yet a significant number of wartime veterans and surviving spouses who qualify have never applied — often because no one told them about it. Our Benefit Specialists, working under the guidance of our VA-accredited attorney, help families understand their eligibility, gather documentation, and navigate the application process from start to finish.
To qualify, the veteran must have served at least 90 days of active duty, with at least one day during a wartime period (World War II, Korea, Vietnam, or Gulf War), and received an honorable — or anything other than dishonorable — discharge. The veteran or spouse must need assistance with daily activities like bathing, dressing, or mobility, and meet certain income and net worth requirements.
There is no cost to find out if you qualify. If you or someone you care about served during wartime and is now facing the realities of long-term care costs, we encourage you to reach out. Call us at (844) 757-3047 or visit PatriotAngels.com to start your free consultation.
The Bottom Line
Long-term care in America is expensive — and it’s getting more expensive every year. Whether the need is a few hours of home care each week or a full-time memory care facility, the financial reality facing families is significant. The median senior household doesn’t have the savings to absorb these costs indefinitely, and income alone rarely covers them.
For veteran families, the Aid & Attendance benefit is one of the most meaningful tools available to bridge that gap. It won’t cover everything — but it can make an enormous difference in what’s affordable, and in the quality of care a loved one is able to receive.
If you think your family may qualify, don’t wait to find out. The sooner a claim is filed, the sooner benefits can begin — and every month matters when care costs are this high.
If you or a loved one served our country, let us help you secure
the benefits you’ve earned.
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Frequently Asked Questions
Common questions about long-term care costs and VA benefits for veterans and surviving spouses.
How much does assisted living cost on average in 2026?
The national median cost for assisted living is $6,200 per month, or $74,400 annually, according to the 2025 CareScout Cost of Care Survey (published in 2026). Costs vary significantly by state and region — some areas are significantly higher or lower than the national median. Memory care units within assisted living communities typically cost $1,000–$2,500 more per month than standard assisted living.
What is the average cost of an in-home caregiver?
The national median hourly rate for a non-medical home caregiver is $35 per hour as of 2026. For full-time care — defined as 44 hours per week — that works out to approximately $80,080 per year. Many agencies require a minimum number of hours per week, and rates vary based on location and the level of care required. Skilled nursing care provided at home runs significantly higher, with a national median rate of $90 per hour.
Does Medicare pay for assisted living or long-term home care?
No. Medicare does not cover assisted living, memory care, or ongoing custodial care at home. Medicare may cover short-term skilled nursing care following a qualifying hospital stay — typically up to 100 days under specific conditions — but it does not cover long-term personal care needs. Many families are caught off guard by this limitation when the need for care arises.
How much have care costs increased in recent years?
Significantly. According to a March 2026 report from the AARP Public Policy Institute, home care and assisted living costs increased by nearly 50 percent between 2019 and 2024. Nursing home costs rose approximately 25 percent over that same period. By comparison, household income for adults 65 and older grew only 22 percent — meaning costs outpaced income for most senior households by a wide margin.
What is VA Aid & Attendance and who qualifies?
VA Aid & Attendance is a tax-free monthly pension benefit for wartime veterans and their surviving spouses who need help with daily activities or are residing in a care facility. To qualify, the veteran must have served at least 90 days of active duty with at least one day during a wartime period (World War II, Korea, Vietnam, or Gulf War) and received a discharge that was anything other than dishonorable. The veteran or claimant must also need assistance with daily activities such as bathing, dressing, or mobility, and meet certain income and net worth requirements. The 2026 benefit is up to $3,845 per month for two veterans who are married to each other, and $1,558 per month for a surviving spouse.
Can the Aid & Attendance benefit help pay for a nursing home?
Yes. The VA Aid & Attendance benefit can be used to help offset the cost of a nursing home, assisted living facility, memory care community, adult day care, or in-home care. The benefit is paid directly to the veteran or surviving spouse and can be applied toward any qualifying care expense. It does not cover the full cost of care on its own, but it provides meaningful monthly assistance that can make higher-quality care more financially accessible.
