The cost of receiving long-term care services at home is increasing, but not nearly as rapidly as the cost of nursing home or assisted living services, according to an April 2010 report by Genworth Financial, a long-term care insurance company.
Findings from the 2010 Cost of Care Survey indicate the national costs and rates of price increases for specific types of long-term care:
- Licensed Homemaker Services — $18 median hourly rate; up 3 percent from 2009; five-year annual growth rate of 2.4 percent
- Licensed Home Health Aide Services — $19 median hourly rate; up 2.7 percent from 2009; five-year annual growth rate of 1.7 percent
- Adult Day Health Care — $60 median day rate; up 12.0 percent from 2009; five-year growth rate unavailable
- Assisted Living Facility, One Bedroom, Single Occupancy — $3,185 median monthly rate; up 12 percent from 2009; five-year annual growth rate of 6.7 percent
- Nursing Home, Semi-Private Room — $185 median daily rate; up 5.7 percent from 2009; five-year annual growth rate of 4.6 percent
- Nursing Home, Private Room — $206 median daily rate; up 5.1 percent from 2009; five-year annual growth rate of 4.5 percent
Regional Comparison
The survey includes an interactive tool that displays costs by state and local area, and permits comparisons of up to four locations at a time.
Alaska currently spends the most per person on residential care and home care.
Meanwhile, Louisiana, Missouri, and Oklahoma spend the least per person on residential care; and West Virginia, Alabama, and Louisiana spend the least per person on home care.
Consumers Benefit
Genworth Financial hopes to use the findings — and the pricing details it provides at the local level — to help people make informed decisions, according to Beth Ludden, Genworth’s senior vice president for long-term care product development.
“I think the most important thing around in-home care is that you have a network of people in the community who are able to support you,” Ludden told U.S. News & World Report.
For consumers who prefer to receive support services at home, the slower rate of growth for home care is good news.
– by Meghan Shineman, PHI New York Policy Analyst
This article could be misleading. When comparing home care costs to ALF costs, it appears to be apples to oranges. The average base rate that home care workers are receiving does not reflect the amount of hours used or the total cost to the senior. For the ALF rates, it appears that an average rate being charged for a 1 bedroom unit was used. This rate takes in many different levels of care. This inflates the ALF percentage increase as it reflects the trend for seniors to delay care and therefore needing higher levels of care when they do move into ALF communities. A senior at level one care may be at $2700.00 in 2009, that same resident may be at $3200.00 in 2010 due to an increase in their care needs. This senario reflects a 0% increase in cost as that resident would have been paying $3200.00 in 2009 if they had needed the same level of care that they currently do. A more accurate comparison would be to report increase in ALF base rates (typically 3-4% and in this economy 0% for many companies.) I appreciate Genworth trying to help seniors make informed decisions, however it is critical that the information be accurate to be helpful.