Genworth Financial has completed its 2012 survey on long term care service providers across the country. Let’s see the trends for Home Care Providers and Nursing Home Providers.
Home Care Provider Costs
Rates charged by home care providers for “non-skilled” related services have remained relatively flat over five years. In 2013 the hourly rate for a home health aide was $18 per hour. The good news: the historical compound annual growth rate for this type of care has been a mere
1.15 % over the last five years of survey results.
Possible reasons that home care rates have remained so flat may be due to
- increased competition among agencies,
- availability of unskilled labor, and
- the fact that these agencies can avoid the costs associated with maintaining stand-alone health care facilities.
Nursing Home Provider Costs
Unlike the home care costs, facility-based provider costs have increased significantly. In 2012 the average annual rate for a private nursing home room was $81,030. This increase represents a 4.28% compound annual growth rate over that period and means Americans can expect to pay over $11,000 more per year than five years ago. See Figure.
 Data from Survey by Genworth Financial see its website at: https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html
The monthly rate for a one-bedroom unit within a licensed assisted living facility has increased 5.7% annually over five years. This excludes any one-time community fees that are typically charged by approximately one-third of all assisted living facilities surveyed.
The survey shows that long term care costs are ever-rising. You must make provision in your retirement planning to handle these costs. Give us a call or fill out the card so we can help you decide whether long term care insurance a suitable choice for you.
JD Smith, representative, securities offered through Lowell and Company