Long-Term Care Costs in Arizona: What to Plan For in 2026
In-home care, assisted living, and memory care costs in the Phoenix area — plus the three most common ways Scottsdale families fund them.
Long-term care is the retirement risk many families under-plan for. In the Phoenix metro, current median costs run roughly $6,000-$8,500 per month for assisted living and often $9,000-$12,000+ per month for memory care. Home health aides average $30-$38 per hour. Figures are drawn from the Genworth Cost of Care Survey (https://www.genworth.com/aging-and-you/finances/cost-of-care.html) and are subject to change.
Three common funding paths
- Self-fund from investments — realistic for higher-net-worth families, but requires a dedicated bucket, not just 'the portfolio.'
- Traditional long-term care insurance — premiums have stabilized but underwriting is stricter.
- Combination life/LTC or annuity/LTC policies — combine a death benefit with LTC access; if care isn't used, heirs receive the balance. The LTC rider may require an additional fee, and is not a replacement for a stand-alone long-term care policy. Guarantees are based on the claims-paying ability of the issuing insurance company.
What to decide before you shop
Before comparing policies, families should decide who provides care, where (home vs. facility), and how much of the cost the plan is meant to cover. The right answer is rarely 100% — it is usually enough to protect the surviving spouse's lifestyle. Insurance products are not FDIC-insured and guarantees depend on the issuing carrier's claims-paying ability.
Frequently asked
Questions Scottsdale retirees ask us
- How much does assisted living cost in Scottsdale?
- Median assisted living in the Scottsdale and Phoenix area currently runs roughly $6,000-$8,500 per month, with premium communities in north Scottsdale often above $10,000. Memory care typically adds 30-50% on top of assisted living rates. Source: Genworth Cost of Care Survey (https://www.genworth.com/aging-and-you/finances/cost-of-care.html).
- Is long-term care insurance still worth it?
- For many families in their late 50s to mid-60s, yes — especially Combination designs. Traditional stand-alone LTC has become harder to underwrite and price, so much planning today uses Combination life/LTC or asset-based products.
- Does Medicare pay for long-term care?
- Generally no. Medicare covers short-term skilled nursing after a hospital stay but does not cover ongoing custodial care in assisted living or memory care. That is the risk long-term care planning is designed to address.