Key Takeaways
- Assisted living averages about $5,900 per month, while nursing homes often exceed $10,000 per month.
- Nursing homes provide 24/7 medical care, while long-term care facilities focus on daily assistance.
- The cost difference can exceed $40,000 per year.
- Nearly 70% of people age 65 will need some form of long-term care.
- Medicaid covers a large portion of nursing home costs, while assisted living is often paid out of pocket.
What Is a Long-Term Care Facility?
A long-term care facility typically refers to assisted living or residential care communities designed for seniors who need help with daily activities such as bathing, dressing, and medication management. These facilities provide a balance of independence and support but do not offer intensive medical care.
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What Is a Nursing Home?
A nursing home, also known as a skilled nursing facility, provides 24/7 medical supervision and care. These facilities are designed for individuals with serious health conditions who require ongoing medical treatment, rehabilitation, or constant monitoring.
Cost Comparison: Long-Term Care vs Nursing Home
Cost is one of the biggest differences between these two types of care. Assisted living facilities average about $5,900 per month, while nursing homes range from approximately $9,500 to over $11,000 per month depending on room type and location.
On an annual basis, assisted living averages around $70,800 per year, while nursing home care can exceed $110,000 to $129,000 per year.
Nursing Homes Can Cost Nearly Double Assisted Living
Based on national averages, nursing homes cost roughly 70% to 100% more than assisted living. In many cases, the difference exceeds $40,000 per year.
This cost difference is driven by the level of care. Nursing homes include full-time medical staff, specialized equipment, and ongoing supervision, while assisted living focuses on daily support and independence.
When You Need a Nursing Home vs Long-Term Care
Long-term care facilities are appropriate for individuals who need help with daily activities but do not require constant medical supervision. Nursing homes are necessary when a person requires 24/7 medical care, rehabilitation, or treatment for serious health conditions.
As care needs increase, costs can rise quickly. Moving from assisted living to a nursing home can increase monthly costs by several thousand dollars almost immediately. In many cases, families first explore in-home options before transitioning to facility-based care. See how costs compare in our guide to in-home caregiver costs.
How Long-Term Care Costs Add Up Over Time
Long-term care is rarely a short-term expense. Nearly 70% of people over age 65 will require some form of long-term care, and many will need it for multiple years.
A three-year stay in a nursing home can exceed $300,000, making it one of the largest financial risks in retirement.
Who Pays for Long-Term Care?
Many families are surprised to learn that Medicare does not cover long-term care in most cases. Medicaid covers approximately 44% of long-term institutional care costs, while about 37% is paid out of pocket.
The Bottom Line
Long-term care facilities and nursing homes serve different purposes, but both come with significant costs. Assisted living offers more independence at a lower cost, while nursing homes provide higher levels of care at a much higher price.
Understanding these differences early can help families plan ahead and avoid financial surprises as care needs change over time.
Frequently Asked Questions
What is the difference between a nursing home and a long-term care facility?
Which is more expensive, assisted living or a nursing home?
How much does a nursing home cost per year?
Does Medicare pay for nursing homes?
How long do people typically need long-term care?
ARTICLE SOURCES
Retire Companion requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
- CareScout / Genworth. 2025 Cost of Care Survey
- SeniorLiving.org. Nursing Home Cost Data
- KFF. Nursing Facility Statistics
- Federal Long Term Care Insurance Program. Long-Term Care Cost Data
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