The average cost of long term care in nursing homes, and assisted living facilities increased over 2004, according to Genworth Financial's annual Cost of Care Survey. The average annual cost for a private room in a nursing home rose 6% over the 2004 study to $69,400, while the average annual cost for a one-bedroom assisted living facility increased 5% to an average annual cost of $30,300. The cost of in- home care rose marginally versus the 2004 study.
Genworth surveyed more than 7,000 nursing homes, assisted living facilities and home care providers for its annual comprehensive view of long term care expenses.
According to the study, the cost of care for a private room in a nursing home in urban areas across America was 12% greater than in non-urban areas. And in certain urban areas in California and New York, the cost of care was 50% greater than in non-urban areas of those states. Alaska led the U.S. with the highest annual cost for a private nursing room at $201,000, followed by New York at $134,000. Oklahoma, Arkansas, North Dakota, and Kansas had the lowest average annual cost in the nation, at about $44,000 per year. An executive summary of the study is available at: http://www.genworth.com/comweb/pdfs/2005execsummary.pdf
"Americans enjoy a greater life expectancy than ever before, and more than 70 million people are approaching retirement, " said Buck Stinson, president of Genworth Financial's long term care business. "These two factors will drive demand for long term care and continue to put upward pressure on costs for nursing homes, assisted living, and home care," Stinson said. "Looking ahead, it is critical that Americans make intelligent, informed long term care decisions."
Following are key findings from the Genworth survey, broken out by major category.
-- Nursing Homes: The average annual national cost of a private room in a nursing home is $69,400, or $190 per day, reflecting a 6% increase over 2004 rates of $179 a day. This remains the most costly care option. The average annual cost of a semi-private room within a nursing home also increased 6% to $61,000, which translates to a $167 daily rate.
-- Assisted Living: A private one-bedroom unit in an assisted living facility has an average annual cost of $30,300 -- a 5% increase over 2004. (Excluding entrance, community fees and additional health care services.) Hawaii has the highest annual cost at $49,200; while Arkansas costs were sharply lower in comparison at $18,100.
-- Home Care: The average hourly rate for Home Health Aides was $18.58, versus $18.43 a year ago. For Homemaker services, non-certified, licensed providers had hourly rates averaging $ 16.82, marginally higher than $16.67 a year ago.
Stinson noted that Genworth's industry benchmark study, typically released every fall, was conducted earlier this year to help inform the heightened level of debate in Washington at present about the nation's long term care strategy and the dramatic funding gap that exists with today's government healthcare programs.
Charts offering additional key regional and national findings from Genworth's 2005 Cost of Care Survey, can be accessed online at: http://www.genworth.com/comweb/pdfs/coc05tables.pdf
Genworth Financial commissioned CareScout to conduct its annual cost of care survey. Research was conducted from March through April of 2005, and then fully analyzed. The survey included feedback from more than 7,000 providers in 88 separate regions in the U.S. More than 2000 participants were polled from each of the three categories of long term care providers: Nursing Homes, Assisted Living Facilities, and Home Care Provider groups. Genworth Financial's survey also includes assisted living facilities and certified home care providers, licensed home care providers who are not Medicare certified, and non-licensed home care providers who are also not Medicare certified.
Headquartered in Wellesley, Massachusetts, CareScout helps Americans in every state find quality care providers at preferred rates. Large employers, insurance companies, risk underwriters and families rely on CareScout's proprietary quality of care ratings systems, discount network and database of more than 77,000 nursing homes, assisted living facilities and home care agencies.
About Genworth Financial
During March through April 2005, Genworth Financial commissioned CareScout to conduct its annual cost of care survey. CareScout, a Wellesley, Massachusetts company that specializes in eldercare provider databases and helps families select appropriate providers nationwide, conducted the survey by telephone in 88 separate regions in the U.S., surveying more than 6,000 providers overall. The 2005 Genworth survey included polling of Nursing Homes, Assisted Living Facilities, and Home Care Providers.
SOURCE: Genworth Financial
CONTACT: Neal McGarity of Genworth Financial, +1-203-708-3460
Web site: http://www.genworth.com/