Long-term care is one of the biggest financial challenges facing older Americans, and for baby boomers in New England, cost differences between states can be dramatic. Whether you plan to use assisted living, home care, or a nursing facility, where you live matters. These six cost differences can impact your retirement budget, Medicaid eligibility, and overall financial security. Here’s what Northeastern baby boomers need to know.
1. Massachusetts vs. Maine: More than $20,000 per year difference
In Massachusetts, the average monthly cost of a private nursing home room is $16,009, while the same level of care in Maine costs about $14,302 per month. This is a significant difference for retirees who rely on fixed income or savings. Even semi-private rooms present a similar gap. If you’re considering relocating for retirement, Maine offers more affordable care without sacrificing quality. Of course, prices can vary greatly depending on the level of care needed, and even within different towns in each state.
2. Different Assisted Living Costs in Connecticut
The median monthly cost of care in Connecticut is approximately $4,776 to $8,955. However, the cost of care varies widely across the state. In Bridgeport and Norwich, Connecticut’s most expensive cities for assisted living, the average monthly cost is $10,213 to $15,750. The cheapest assisted living is located in Hartford. In New Haven, the average monthly daily cost is about $5,475. Baby boomers who anticipate needing assisted living should factor this into their long-term financial planning and explore alternative housing options or state-specific subsidies.
3. Vermont’s rising medical costs
Long-term care costs in Vermont already exceed the national average, making the state one of the most expensive for aging services in the country. According to Genworth’s 2024 Cost of Care Survey, assisted living communities in the state currently cost an average of $94,470 per year, while private rooms in nursing homes top out at $182,500 per year. These increases were driven primarily by inflation and rising labor costs, which continue to outpace national trends. For Vermont families planning elder care, these numbers underscore the urgency of proactive financial and care planning.
4. New Hampshire Medicaid Eligibility Thresholds
New Hampshire has stricter income and asset limits for Medicaid long-term care insurance than some neighboring states. By 2025, single nursing home Medicaid applicants in New Hampshire must meet the following criteria: earn less than $2,901 per month, have assets less than $2,500, and require nursing home-level care. That means baby boomers may need to spend more of their assets before qualifying. Understanding these thresholds early can help you plan strategically and avoid financial surprises.
5. Rhode Island’s Community Care Advantages
Rhode Island invests heavily in community care, which can reduce the need for expensive institutional services. Programs like home health aides and adult day care are more accessible here than in other states. Baby boomers who prefer to age in place may find Rhode Island’s approach cost-effective and comfortable.
6. Inflation and future costs
The cost of long-term care is expected to rise in New England, but the amount will vary. Generally speaking, long-term care costs increase at a rate of 3% to 6% each year. However, Genworth found that by 2024, the national median annual cost of a semi-private room in a skilled nursing facility will increase by 7 percent, and the cost of a private room will increase by 9 percent. Therefore, it’s important to expect your salary to increase no matter where you plan to retire. Baby boomers should use a cost calculator to estimate future expenses and adjust their retirement plans accordingly.
Location matters more than you think
For baby boomers in New England, long-term care costs aren’t just about services but location. Understanding the differences between states can help you make more informed decisions about where to live, how to plan, and what kind of care you can expect. Don’t wait until you need care to start comparing costs. The sooner you plan, the more options you have.
Are you planning on receiving long-term care in New England—or already considering it? Share your experience in the comments.
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