Once you turn 65, there is a 70% chance you’ll need long-term care. (1) And it isn’t cheap.
Genworth’s 2024 Cost of Care Survey puts the median cost of a semi-private nursing home room in the U.S. at $111,325 per year. (2) That’s across the country. Florida generally costs more, partly because many retirees settle in the Sunshine State for the warm weather.
Imagine John, a 62-year-old preparing for retirement in Florida. He’s considering the possibility that someday he may require nursing home care, and wants to start budgeting now. He’s especially curious about how Medicare and Medicaid work for this kind of care, and how much costs might rise over the next 20 years. Here’s what someone in his situation should know.
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How much do nursing homes in Florida cost today?
Today, the average monthly cost of a private nursing home room in Florida ranges from $10,300 for a shared room and $11,500 for a private room. Naples, Tampa and Tallahassee usually cost more, while smaller towns like Sebring or Panama City generally cost less. (3)
The level of care impacts price, too. For example, assisted living, where residents still have some independence, is more affordable, costing an average of $4,371 per month in Florida in 2024. (4)
The state you live in also plays a big role. For example, places like Missouri or Oklahoma can be significantly cheaper for similar facilities. In those states, a private and semi-private room may cost 34% to 39% less, which highlights the prominent role location plays in long-term care costs. (5)
What about Medicare or Medicaid — will it cover me?
Medicare and Medicaid serve very different purposes when it comes to long-term care.
Medicare typically does not pay for long-term custodial nursing home care. It may cover short-term stays of up to 100 days after a qualifying hospital admission, but only when skilled nursing or rehabilitation services are required. Once a patient needs help with daily activities, Medicare coverage ends. Medicaid, on the other hand, can pay for nursing home care, but eligibility is strict and rules vary by state. In Florida:
Medicaid does pay for nursing home care, but the eligibility criteria is strict. In Florida, a single applicant must have: (6)
- Income under $2,901 per month.
- Countable assets under $2,000.
- A demonstrable need for nursing home level of care.
Even if you qualify, Medicaid-covered homes may not be your first choice. Recipients must contribute nearly all of their income to the facility, leaving just a small “personal needs allowance” of $160 per month. (7) Moreover, private rooms, upgraded amenities or extras such as special meals often require out-of-pocket payment.
That means someone like John, who has moderate assets and hopes for a higher-quality experience, will likely need to pay privately, at least for a period of time, before qualifying for Medicaid.
Read more: I’m almost 50 and have nothing saved for retirement — what now? Don’t panic. These 6 easy steps can help you turn things around
How much will it cost 20 years from now?
One of the biggest challenges is predicting the future.
Nursing home care costs have steadily climbed over past decades. According to inflation tracking, prices from 1996 to 2025 have grown at an average annual rate of about 3.84% per year, (8) with some recent years seeing increases closer to 5% or 6%. (9)
If that pace continues, today’s “nice” private room in Florida that runs around $12,000 a month (or $144,000 a year) could look very different two decades from now. At a 4% annual increase, that same room could cost roughly $315,000 a year in 20 years. If costs grow faster, closer to 5% or 6% a year, you’re looking at somewhere between $380,000 and $460,000 annually.
In other words, the price of high-quality care could double or even triple by the time someone like John is ready to retire — which is why it’s smart to start planning now.
Here are a few tips to help make a nursing home affordable:
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Liquidate assets: If John owns retirement accounts and investments, he’ll need to decide what portion he’d be willing to liquidate once he transitions into a nursing home, rather than years in advance. For many people, selling a home covers a good portion of nursing home costs, especially if only one spouse needs care. Social Security and pension income can also help offset expenses.
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Work with an elder law or asset-preservation attorney: These attorneys specialize in helping older adults structure their assets and income to preserve eligibility for Medicaid, avoid unnecessary taxes, and protect family wealth. They can guide clients through Florida’s “look-back” period and help set up trusts or spend-down plans to meet qualification thresholds.
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Consider long-term care insurance: Long-term care insurance helps cover the costs of nursing homes, assisted living or in-home care when you can no longer perform certain daily activities independently. Premiums are lower when purchased earlier in life, and policies may cover several years of care depending on coverage limits.
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Explore alternatives: Explore alternatives: In-home nurses or smaller group homes may provide more affordable care with a better quality of life. According to HomeCare.org, non-medical home care in Florida averages about $4,767 per month for 44 hours of weekly care, (10) while assisted living costs around $4,750 per month, based on data from ElderLife Financial. (11) Both are significantly cheaper than full-time nursing home care, though costs can vary depending on the level of service and location.
If John starts planning and saving now, he gives himself worthwhile flexibility. He may never need full nursing-home care, or may use a blend of home care, assisted living and shorter nursing stays. Whether your future involves a nursing home, assisted living or care at home, preparing now can give you peace of mind and more control over your quality of life later.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
LongTermCare.gov (1); Genworth (2), (5); Clara Home Care (3); Sonata Senior Living (4); American Council on Aging (6); MedicaidLongTermCare.org (7); In2013Numbers (8); Medpac (9); HomeCare.org (10); Elder Life Financial (11)
This article originally appeared on Moneywise.com under the title: I’m 62 and setting aside cash in case I end up in a Florida nursing home one day — but how much do I actually need?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.