Dec 6, 2025
Long-term care is one of the biggest financial wild cards in retirement, and the odds aren’t in your favor. By 65, many Americans will need some level of support, whether it’s help with daily tasks, rehab after a hospital stay, or full-time nursing-home care.
That reality hits especially hard in Florida, where the median cost of a semi-private nursing home room in the U.S. is at $111,325 per year (1). For Floridians like John, a 62-year-old saver who’s trying to map out his retirement budget, the question isn’t whether to plan, it’s how much he needs to set aside and how quickly costs might climb.
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With price projections showing dramatic increases over the next two decades and Medicare covering far less than many assume, getting the numbers right now could make the difference between financial stability and a scramble later. Here’s what John, and anyone planning ahead in Florida, should know.
How much does nursing home care cost in Florida today?
Florida remains one of the most expensive states for long-term care, largely because retirees continue to flock to the area and facilities struggle to keep up with demand.
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 (2). Naples, Tampa and Tallahassee usually cost more, while smaller towns like Sebring or Panama City generally cost less.
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 (3).
Costs can swing widely by region. 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 (4).
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Will Medicare or Medicaid cover any of this?
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:
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Medicaid does pay for nursing home care, but the eligibility criteria is strict. In Florida, a single applicant must have:
- Income under $2,901 per month
- Countable assets under $2,000
- A demonstrable need for nursing home level of care (5)
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. 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.
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, (6) with some recent years seeing increases closer to 5% or 6% (7).
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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.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
How to save for a quality nursing home without derailing your retirement
Here are a few tips to help make a nursing home affordable:
Revisit your asset mix
For many retirees, the most realistic way to fund long-term care is to tap certain assets only when the need arises. Selling a home often covers a substantial portion of nursing home expenses, especially if only one spouse requires care, while Social Security and pension income can help offset monthly costs. The key is understanding which assets you’ll draw from first and which ones you’d rather preserve.
Talk with an elder law or Medicaid planning attorney
Because Florida has strict income and asset limits, working with a specialist can help you avoid mistakes that jeopardize eligibility. Attorneys can walk you through the state’s look-back period, help you structure a legal spend-down plan and create strategies that protect a spouse who remains at home. Starting early gives you far more options and flexibility later.
Explore long-term care insurance or hybrid policies
Traditional long-term care insurance can still be useful, but premiums have risen sharply and policies can be difficult to maintain over time. Many Floridians now consider hybrid life insurance policies with long-term care riders, which allow you to use part of the death benefit to pay for care. These options can offer more certainty, since you or your beneficiaries receive value one way or another.
Look at care alternatives
Nursing homes aren’t the only option for most people. In-home care and assisted living often cost half as much as a private nursing home room in Florida, while adult day programs and smaller residential group homes can offer additional flexibility. Using a mix of lower-cost services can delay the need for full-time care and stretch your retirement budget significantly further.
For many, long-term care is a major budget item that requires clear expectations, early planning and ongoing review. But with the right preparation, you can create a plan that protects your finances and preserves your independence.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Genworth (1, 4); Clara Home (2); Sonata Senior Living (3); American Council on Aging (5); In2013Dollars (6); Medapc (7)
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Monique Danao is a highly experienced journalist, editor and copywriter with 8 years of expertise in finance and technology. Her work has been featured in leading publications such as Forbes, Decential, 99Designs, Fast Capital 360, Social Media Today and the South China Morning Post.
