In Illinois, the average cost of a private room in a nursing home is approximately $9,200/month (~$110,000/year), assisted living averages $5,500/month (~$66,000/year), and in-home care from a licensed agency averages $32-$36/hour. Costs in Chicago's Northern Suburbs typically run 15-25% higher than the state average.
Genworth's most recent Cost of Care survey places Illinois nursing home costs slightly above the national median, but Cook and Lake County costs are meaningfully higher. A private room at a well-rated facility in Northbrook, Glenview, Lake Forest, or Highland Park commonly runs $11,000-$14,000/month, or $130,000-$170,000/year. Memory care units typically add 20-30% on top of standard nursing care.
Assisted living, the middle tier between independent living and skilled nursing, averages $5,500/month statewide but routinely runs $7,000-$9,500/month at Northern Suburbs communities like The Mather (Evanston), Sedgebrook (Lincolnshire), or Westminster Place (Evanston). Entrance-fee continuing care retirement communities (CCRCs) require a refundable deposit of $300,000-$1.5 million depending on unit size, plus monthly fees.
In-home care is the option most retirees prefer and underestimate. A non-medical caregiver from a licensed agency in the Chicago area costs $32-$36/hour. For 8 hours/day, 7 days/week, that's $9,000-$10,000/month, comparable to nursing home costs once care needs become substantial. 24-hour care typically requires three shifts and runs $20,000-$28,000/month.
These costs are the single largest financial risk most Northern Suburbs retirees face. A 5-year nursing home stay at $130,000/year is $650,000+, enough to consume a substantial retirement portfolio. The right planning approach depends on net worth, family situation, and risk tolerance: traditional long-term care insurance, hybrid life/LTC products, self-funding from a dedicated portfolio bucket, or planned Medicaid spend-down each have a place.
Key facts
- Illinois nursing home (private room) average: $9,200/month statewide; $11,000-$14,000/month in Northern Suburbs
- Illinois assisted living average: $5,500/month statewide; $7,000-$9,500/month in Northern Suburbs
- In-home agency care: $32-$36/hour in the Chicago area
- Memory care: typically 20-30% premium over standard nursing care
- Average length of long-term care stay: 2.5-3 years; 20% of people need care for 5+ years
- Medicare does NOT cover long-term custodial care, only short-term skilled care after a hospital stay
Does Medicare pay for long-term care?
No. This is one of the most common and costly misconceptions in retirement planning. Medicare covers skilled nursing care for up to 100 days following a qualifying hospital stay, and only the first 20 days are fully covered. Medicare does NOT cover custodial long-term care (help with bathing, dressing, eating, mobility) regardless of duration. Long-term care is funded through private long-term care insurance, personal assets, or, once assets are spent down. Medicaid.
What's the difference between assisted living and a nursing home?
Assisted living provides housing, meals, social activities, and help with activities of daily living (bathing, dressing, medication management) for residents who don't need 24-hour skilled medical care. Nursing homes provide 24-hour skilled nursing care for residents with significant medical or cognitive needs. Cost reflects this: nursing homes are roughly 60-80% more expensive than assisted living. Many Northern Suburbs CCRCs offer all three levels (independent, assisted, skilled) on one campus so residents can transition without moving facilities.
