Genworth Releases 2008 Cost of Care Survey Results
AARP’s provider of long-term care insurance, Genworth, just released their 2008 Cost of Care Survey. Each year Genworth surveys the cost of care in more than 10,000 nursing homes, assisted living facilities and home care providers in all 50 states and the District of Columbia.
According to Genworth’s 2008 Cost of Care Survey long-term care costs have increased for the fifth consecutive year. Rising costs can create a tremendous burden, both for AARP members and their families. New Jersey has some of the highest costs in the nation. Home and Community-based care can sometimes be the least expensive option and many people who are able to prefer to remain in their homes.
According to an April 29 press release generated by Genworth, “Most long term care services are rising faster than inflation, and by 2050, the nation’s bill for providing long term care services is expected to top $379 billion. In 2008, the average annual price of a private nursing home room reached $76,460 nationally—more than one and a half times the average household income in the U.S. of $48,201. The most preferred form of care is in the home, and the cost of home care performed by a non-skilled home health aide remained flat in most regions of the country.”
Key Findings from the Genworth Study on Cost of Care:
Following are key findings, broken out by major category:
• Nursing Homes: The national average annual cost of a private room in a nursing home is $76,460 or $209 per day, a 17 percent increase over 2004 rates. This remains the most costly option. The most expensive average per day room rate was found in Alaska ($515) and the least expensive average per day room rate was found in Louisiana ($125).
• Assisted Living Facilities (ALF): A private one-bedroom unit in an assisted living facility has an average annual cost of $36,090 in the U.S., a jump of 25 percent since 2004. The most expensive average unit was found in New Jersey ($4,921 per month) and the least expensive average unit was found in Arkansas ($1,981 per month).
• Home Care: Nationally, the average hourly rate for a non-Medicare certified, state licensed home health aide is $19.18, a cost that translates to $43,884 per year for 44 hours per week of care. That’s only a 4 percent increase over the hourly rate for a non-Medicare certified home health aide in 2004 of $18.43.
• Adult Day Health Care: First year research findings indicate the average annual cost across the country for five days a week in an adult day health care facility is $15,236.
Read the full press release (April 29): Looming Workforce Shortage Pressures Long Term Care Costs, According to Research by Genworth Financial
Genworth’s Cost of Care Survey
Read the survey and more on long-term care costs from Genworth Financial’s website http://www.genworth.com/content/genworth/www_genworth_com/web/us/en/products_we_offer/long_term_care_insurance/long_term_care_overview/what_is_the_cost_of_long_term_care.html
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