SIMBA Small Business Blog: The Rising Costs of Long-Term Care

As a small business owner, you already juggle countless responsibilities, from managing employees to keeping your operations profitable. But have you considered how the rising costs of long-term care could impact both you and your workforce? Across the United States, and particularly in Washington State, aging populations and increased demand for care are driving up costs. Whether it’s in-home assistance or nursing home care, the financial burden of long-term care is growing, making it a concern that business owners cannot afford to ignore.

The Cost of In-Home Care

In-home care provides essential support for individuals who wish to remain in their homes, with caregivers helping with daily tasks such as bathing, dressing, meal preparation, and medication management. While this option helps maintain independence, it comes at a high cost.

In Washington, the average cost of in-home care is approximately $6,000 per month for 44 hours of weekly care. For those requiring round-the-clock assistance, these expenses can more than double. Over the course of a year, families can expect to spend upwards of $70,000 on in-home care alone. This financial strain often forces families to make difficult decisions, such as cutting back on business investments, reducing work hours, or tapping into savings.

The Cost of Nursing Homes

For individuals who require 24-hour medical supervision and assistance with daily activities, nursing home care is often the only option—but it comes at an even higher cost. In Washington State, the average monthly cost for a private room in a nursing home is over $10,000, totaling more than $120,000 annually.

For many families, these costs can impact both personal and professional financial stability. Employees dealing with long-term care challenges may need more flexibility, unpaid leave, or financial assistance, which can affect productivity and workplace morale. Additionally, many individuals find themselves needing care in the future without a clear financial plan in place.

The Financial Strain on Families

Long-term care costs don’t just impact individuals—they create financial stress for entire families. Family members often take on caregiving roles to avoid professional care costs, which can lead to absenteeism, decreased productivity, and added stress. According to AARP, unpaid family caregivers provide over $470 billion in care annually across the U.S., often at great personal and financial cost.

Even with family caregivers, out-of-pocket expenses for supplies, medical equipment, and part-time professional care add up quickly. These hidden costs create additional pressure, particularly for middle-income families who don’t qualify for government assistance but can’t afford private insurance or out-of-pocket expenses.

The Impact of Rising Costs

As the population ages and demand for long-term care rises, costs are expected to increase even further. Several factors contribute to this trend:

• Labor Shortages: A growing shortage of professional caregivers is driving up wages, which are passed on to families.

• Increased Demand: As life expectancy rises, more individuals require care for longer periods, adding to financial pressures.

• Medical Advancements: While improvements in medical care enhance quality of life, they also drive up healthcare and caregiving costs.

What Families Can Do

The rising cost of long-term care is a growing challenge, but individuals and families can take proactive steps to prepare:

• Explore Financial Planning Options: Long-term care insurance and savings strategies can help cover future expenses.

• Plan for Your Own Future: Speak with a financial advisor to prepare for potential long-term care costs and avoid unexpected financial strain.

• Leverage State Programs: Programs like Washington State’s WA Cares Fund provide financial support for in-home care, nursing services, and other essential resources.

• Seek Employer Benefits: Some workplaces offer caregiving assistance or flexible work arrangements that can ease the burden.

Long-term care is a growing reality, and as costs continue to rise, it’s crucial to plan ahead. By considering the impact on both financial and personal well-being, families can better navigate the challenges and ensure stability for the future.