Baby boomers are now retiring and driving up the costs for longterm care rapidly. Most Americans will end up paying for long term care services with their own financial resources. Neither Medicare or Medicaid can be depended on to provide coverage for one’s long term care costs.

Nursing care homes cost approximately $75,000 a year, and each year, the cost increases by about 5%. If you require nursing home care for any extended period of time it will likely break your bank.

There are at least three options available to the average American for reducing the cost of long term care. Long term care insurance is an option that many people are currently reviewing. A typical long term insurance policy costs between a thousand and three thousand dollars per year. Younger Americans will pay much lower costs than an elderly American. This cost is added on top of your current living expenses.

Informal care is probably the most common type of long term care in the nation. Since healthcare is provided by family, there are no financial costs associated with this type of care. Although it has no cost, informal care is costly in terms of human resources because it places a heavy burden on family members. The typical American caregiver is the wife of the patient who works full time and puts in an additional 20 hours of caregiving a week. With this option your current living expenses remain the same.

An alternative to the first two options is to outsource the medical care to a country where that care is more affordable. In other words, you will outsource your healthcare costs to another country. With this third option, your living expenses and long term care costs may be lower than your current living expenses.

At present, many countries are taking steps to attract American retirees needing long term care to their shores. The cost of care for a retiree in an assisted living facility (home + food + healthcare) can be as little as $1,000 a month. The outsourcing of long term care to a developing country is slowly becoming an alternative that more people are likely to consider.

Developing countries such as Mexico are currently building their long term care industry and targetting the American retiree. Progressive countries like Japan have begun to develop retirement communities in the Philippines to take advantage of the lower cost of living and healthcare in that country.

It is a good idea to investigate any eldercare services before purchasing however, to make sure it is consistent with your needs. Although the financial benefits of medical tourism are good, it remains a new and evolving industry abroad.