Could You Afford to Spend $13,235 a Month on Care?
October is Long-Term Care Planning Month. Are you prepared for the cost of care?
As we enter Long-Term Care Planning Month, it’s the perfect time to face a reality many of us prefer to ignore:
According to the U.S. Department of Health and Human Services, 70% of Americans will need some form of long-term care during their lifetime.¹
That care could mean help at home, assisted living, or nursing home placement—and without planning, the financial impact can be devastating. Many families end up paying privately until their savings are depleted, leaving little behind for a spouse or future generations.
The Cost of Care in New York
In Upstate New York, nursing home costs average $13,235 per month — that’s over $150,000 per year.² Even home care can cost thousands per month depending on hours needed. These costs rise each year, and Medicare generally does not cover long-term custodial care.
While long-term care insurance can help bridge the gap, premiums can be high, and not everyone qualifies based on age or health. As a result, many people rely on Medicaid, which is the only government program that pays for long-term care over an extended period… but it comes with strict income and asset eligibility rules.
(Click HERE to hear Megan Harris-Pero explain the difference between Medicare and Medicaid.)
Timing Is Everything: Understanding the 5-Year Lookback
For Chronic Care Medicaid, New York applies a five-year lookback period (60 months). That means Medicaid will review all financial gifts and transfers made in the five years before your application.
If any uncompensated transfers occurred during that window—such as gifts to children or transfers into certain trusts—a penalty period may delay your eligibility. The takeaway? You need to plan well before care is needed.
Because none of us can predict the future, starting at least five years before you anticipate needing care is one of the best ways to protect your home, savings, and peace of mind.
A Common Scenario
Imagine this: a parent suddenly suffers a stroke and needs nursing home care. The family is shocked to learn that Medicaid won’t help until nearly all of their parent’s savings are spent down — including retirement accounts (not in payout status) that were meant to provide lifetime security.
Without prior planning, families often have to liquidate investments or drain joint accounts to cover months of care. By the time Medicaid eligibility is achieved, years of careful saving can disappear.
In contrast, families who plan ahead can use Medicaid Asset Protection Trusts, spousal resource protections, and strategic transfers to preserve retirement savings or investment accounts while still ensuring access to care when it’s needed most.
Planning Ahead Means Peace of Mind
Early planning gives you flexibility—to choose your care setting, protect your assets, and reduce stress for loved ones. It also allows you to make thoughtful choices rather than rushed crisis decisions.
Planning ahead is your best protection. Acting early gives you options to preserve your home and savings, qualify for Medicaid when needed, and ensure you or your loved one receives quality care without sacrificing financial security.
At Harris-Pero Law, we guide families through long-term care and Medicaid planning with compassion and clarity, helping you prepare now so you aren’t caught off guard later.
Ready to secure your future? Contact us today to get started — it’s never to early to plan ahead.
¹ U.S. Department of Health and Human Services, Administration for Community Living. How Much Care Will You Need? https://acl.gov/ltc/basic-needs/how-much-care-will-you-need (accessed September 2025).
² New York State Partnership for Long-Term Care. Estimated Average New York State Nursing Home Rates. https://nyspltc.health.ny.gov/rates.htm (accessed September 2025). Monthly figure based on annual and daily rates for Central and Northeastern regions.