Market Context Note: This article covers information from both Korea and the United States. Each piece of information is marked in the text as 🇰🇷 Korea for Korea or 🇺🇸 U.S. for the United States to show which country's standards apply.
When a parent's health begins to decline, one of the most pressing practical concerns families face is the cost of care. Although it's easy to assume "it will be expensive," knowing the specific numbers—rather than just guessing—can significantly change how well you prepare. Let's look side by side at both countries' systems and actual costs.
🇰🇷 Korea Korea has the Long-Term Care Insurance System. According to the "2024 Long-Term Care Insurance Statistical Yearbook" published by the National Health Insurance Service, as of the end of 2024, the number of recognized beneficiaries was 1,165,000, a 6.1% increase from the previous year. The annual benefit cost reached 16 trillion 176.2 billion won—the first time since the system's introduction in 2008 that spending exceeded 16 trillion won. The average monthly benefit cost per beneficiary is 1.5 million won, of which the Health Insurance Service covers 91.3% (1.37 million won). This means families may actually pay far less than they expect.
🇰🇷 Korea To use this system, you must first apply for a "long-term care grade." You are eligible if you are 65 or older, or if you are under 65 but have age-related conditions such as dementia, cerebrovascular disease, or Parkinson's disease. The process follows this order: Service application → home visit survey by a Service staff member → review by the grade determination committee → notification of approval. The grade determination is completed within 30 days of submitting the application. Grades range from 1 to 5, plus a cognitive support grade. Depending on your grade, you can use community-based benefits (home care, home bathing, home nursing, adult day care, etc.) or facility benefits (admission to a long-term care facility). If you use facility benefits, standard applicants pay only 20% of the total cost themselves.
🇺🇸 U.S. In the United States, elderly health coverage is divided into Medicare and Medicaid. Medicare is a federal health insurance program provided to anyone 65 or older who has paid Social Security taxes for at least 10 years (40 quarters), regardless of income. It consists of Part A (hospitalization, hospice, and certain nursing facility care), Part B (outpatient care and screenings), and Part D (prescription drugs). According to the U.S. Centers for Medicare & Medicaid Services (CMS), Medicare spending in 2024 reached approximately 1 trillion 118 billion dollars.
🇺🇸 U.S. However, it is essential to know that Medicare provides very little support for long-term care costs. Nursing home long-term admission costs are not covered by Medicare. Support is available only through Medicaid if you meet low-income requirements. As of 2024 survey data, the median annual cost for a nursing home in New York State is approximately $176,660 for a semi-private room and $186,698 for a private room. In areas with dense Korean populations, such as New York and California, monthly costs often exceed $15,000 to $18,000.
🇰🇷 Korea vs 🇺🇸 U.S. The most significant difference between the two countries' systems lies in "universality." Korea's long-term care insurance is structured so that once you receive a grade determination, the costs are covered largely by the Insurance Service, regardless of income level. In the United States, by contrast, if your assets exceed a certain threshold, you do not qualify for Medicaid, and you must pay the full cost of high-cost facility care out of pocket. In the United States, when someone receives both Medicare and Medicaid simultaneously, broad benefits including long-term care services become available. However, the eligibility requirements are strict and standards vary by state.
Sources: National Health Insurance Service "2024 Long-Term Care Insurance Statistical Yearbook" (published June 30, 2025); Ministry of Health and Welfare Long-Term Care Insurance Policy Guide (mohw.go.kr); U.S. Centers for Medicare & Medicaid Services (CMS) NHE Fact Sheet 2024; CareScout (Genworth) 2024 Cost of Care Survey (New York State nursing home costs); Medicare.gov official Korean-language guide (2023).
Note: This article was compiled by AI from the sources cited above. We strive for accuracy, but for decisions about your specific situation, please confirm the latest guidance from a professional or the relevant agency.