The Genworth’s 2019 cost of care study revealed that the cost of homemaker services, like cooking, cleaning and running errands, went up by 7.1% since last year.
Think Advisor’s recent article, “15 Most Expensive States for Long-Term Care: 2019,” also reports that the annual median cost is now $51,480. The cost of a home health aide to provide hands-on personal assistance has also increased by 4.6% to $52,642.
“Considering that most people want to stay in their homes as they grow older and 65-year-olds today have a 70% chance of needing some type of long-term care services in their remaining years, it’s evident that planning for how to pay for long-term care is now more urgent than ever,” said Gordon Saunders, senior brand marketing manager at Genworth.
Genworth’s annual survey asked nearly 54,000 long-term care providers nationwide to fill out over 15,000 surveys for nursing homes, assisted living facilities, adult day health facilities and home care providers. The survey includes 441 regions based on the Metropolitan Statistical Areas, defined by the Office of Management and Budget (OMB), making up approximately 85% of the U.S. population.
According to Genworth, providers say that a lack of care professionals to address the increasing demand for in-home care, has been caused by a “perfect storm” of these factors:
- A tight labor market;
- Expenses for complying with new requirements in local, state and federal certifications and regulations; and
- Changes in post-acute Medicare reimbursement, making hospitals discharge patients sooner and with more care needs.
Although the costs of home care and adult day health care services has increased in the past year, the cost of care in facilities has stabilized. The increases have been only 1% to 2% for assisted living facilities and nursing homes. The national annual median cost of care now runs from $102,200 for a private room in a nursing home to $19,500 for adult day health care services.
Alaska is in the number one spot in the top 15, with an average annual cost at just over $162,000. Massachusetts in next with an average annual cost of roughly $86,500. Ranking third is Washington, D.C., with an average annual cost of $86,100.
For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Think Advisor (October 22, 2019) “15 Most Expensive States for Long-Term Care: 2019”
Suggested Key Terms: Paying for a Nursing Home, Long-Term Care Planning, Elder Care, Retirement Planning