Nursing home costs increase each year. In 2002, the average cost a for nursing home was $168 per day, that's is about 10% more than in 2000. Expenses such as these can have a devastating impact on your retirement savings. Many people over 65 erroneously believe that Medicare will pay more or even all of their nursing home bills, or that their HMO will pick up the cost. That's simply not true. And, the result is that many people are surprised to discover they will have to pay the greater portion of these costs out of their own pockets. Many consumers do not understand that Medicare and Medicaid provide only limited financial assistance with long-term care needs. While Medicare will cover up to 100 days of skilled nursing home care per benefit period, after 30 days beneficiaries must pay a coinsurance fee. In 2001, that coinsurance fee was about $101.50 p/day.