Inflation Continues to Squeeze Americans Despite Slowing Down

The costs for nursing homes and adult care in the US increased by 2.4% in July, the largest monthly gain on record since 1997, according to the Bureau of Labor Statistics. While it remains to be seen if this is a one-time anomaly or a longer-term trend, experts emphasize the need for individuals to plan and save for their retirement years, which often include high healthcare expenses. Medicare does not cover all healthcare-related costs, including long-term care facility services, leaving many individuals to spend down their savings to qualify for Medicaid coverage. The average out-of-pocket spending for long-term care facilities is significant, with assisted living facilities starting at $72,000 per year on average. Experts recommend preparing for future healthcare costs by utilizing health savings accounts (HSAs) and considering the potential impact on retirement budgets.