Long-Term Care Costs Continue to Rise
Genworth, a long-term care insurance provider, has just released the findings
of its 2016 survey on the costs of providing long-term care. Not surprisingly,
costs have increased since the 2015 survey. In fact, costs have steadily
risen over the past 13 years since Genworth began tracking them.*
Long-term care can be provided in a variety of settings, as explained below,
and many people use the full range of services as needs increase. Families
are often shocked to find out how much long-term care can cost, especially
when they learn that Medicare benefits are limited for these services.
Unless the person has long-term care insurance, they will likely pay for
this care out-of-pocket—from savings, home equity and, often, other
family members’ assets. Knowing the kinds of services available,
current costs and historical rates of cost increases can help us plan
for future costs of long-term care.
Homemaker Services: These include help with “hands off” care
such as cooking, cleaning, running errands and providing companionship.
The national median hourly rate for 2016 is $20, up 2.56% from 2015—more
than the average increase of 2.13% over the last five years.
Home Health Aide Services: This is “hand-on” personal care
for which a skilled nurse does not need to be present. A home health aide
will typically help with bathing, dressing, transferring and toileting.
The national median hourly rate for 2016 is $20 ($3,813 per month, based
on 44 hours of care per week), up 1.25% since 2015—slightly less
than the average increase of 1.28% over the last five years.
Adult Day Health Care: These community-based facilities provide social
and support services in a protective setting for those who are functionally
and/or severely cognitively impaired, helping the individuals live more
independently in the community and giving relief to caregivers. Most are
designed to offer socialization, supervision and structured activities.
Some provide personal care, transportation, medical management and meals.
The national median daily rate is $68 ($1,473 per month, based on five
days per week). This is a decrease of 1.25% from 2015 costs, but the average
increase has been 2.53% over the last five years. Government subsidies
may be available based on ability to pay.
Assisted Living Facilities: These residential facilities provide personal
care, health services, and room and board, but the level of care may not
be as extensive as that of a nursing home. Both small group homes and
large multi-service facilities qualified as assisted living facilities
for purposes of this survey. The national median monthly rate is $3,628,
up .78% from 2015, with an average increase of 2.16% over the last five years.
Nursing Home Care: These facilities often have a higher level of supervision
and care than assisted living facilities, with personal care assistance,
room and board, medication, therapies and rehabilitation, and 24-hour
on-site nursing care. The national median daily rate for a semi-private
room is $225 ($6,843 per month), up 2.27% since 2015, with an average
increase of 3.12% over the last five years. National median daily rate
for a private room is $253 ($7,695 per month), up 1.24% since 2015, with
an average increase of 3.51% over the last five years.
* Surveys are conducted by CareScout, a Genworth company. CareScout created
the nation’s first quality of care ratings system for certified
nursing home and home care providers, and helps families find quality
care providers for their long-term care needs. For more information, visit