Richmond, Va. (April 9, 2015) – Genworth announced today, the results of its 12th annual Cost of Care Study, which shows that in Michigan, the cost to receive long term care services at home with a home health aide has increased over the past five years. On a national level, the survey shows a dramatic increase in facility based care, including assisted living and nursing home facilities, while the cost to receive care at home through a home health aide is rising at a more moderate growth rate.
“There is something very difficult about facing some of the challenges and issues that come with aging, including the high costs of long term care services,” said Tom McInerney, president and chief executive officer at Genworth. “Part of our mission at Genworth with the Cost of Care study is to continue educating Americans on how to have tough conversations around long term care and the importance of planning. In fact, last year we embarked on a journey to help facilitate these discussions through our Let’s Talk national initiative.”
Rising Cost of Long Term Care
Nationally, the 2015 median hourly cost for services of a home health aide hired from a home care agency is $20. Home health aide services have risen, on average, one percent annually over the past five years. In Michigan, the median hourly cost of home health aide services is $20. The median hourly cost for home health aide services in Michigan have increased, on average, 1.6 percent annually over the past five years.
By comparison, the median annual cost for care in an assisted living facility is $43,200 nationally and $39,000 in Michigan. The national yearly cost of assisted living has increased, on average, 2.5 percent annually over the past five years and increased, on average, 4.5 percent over the same period of time in Michigan. The comparable cost for a private nursing home room rose, on average, four percent annually over the past five years to $91,250 nationally, and increased, on average, 3.8 percent over the past five years to $99,097 in Michigan.
Planning today can help save families from facing a crisis tomorrow. Having the right talk, the right way, at the right time, can ease the emotional and financial pressures of planning for long term care needs. Knowing the cost of long term care services and the financing options available can help Americans age gracefully in the setting where they are most comfortable.
Learn what financing options are appropriate for your needs:
- Medicare pays for long term care if you require skilled services or rehabilitative care such as in a nursing home (max 100 days) and at home if you are also receiving skilled home health or other skilled in-home services (provided for a short period of time). For more information please visit longtermcare.gov.
- Medicaid covers a large share of long term care services but to qualify your income must be below a certain level and you must meet minimum state eligibility requirements and be in a Medicaid-approved facility. For more information please visit Medicaid.gov.
- If you qualify, private payment options such as long term care insurance, linked benefits products or long term care riders on other insurance can help fill the gap between public assistance and the high cost of long term care services. For more information please visit https://www.genworth.com/long-term-care-insurance/source/get-the-facts/options.html.
- Saving for long term care on your own can be difficult and take years to accumulate funds. To learn more information and see if self-funding will take care of your long term care needs please visit https://www.genworth.com/long-term-care-insurance/source/make-a-plan/payment-options/self-funded.html.
Keep in mind that individual plans can combine several of these approaches.
Consumers can find out what the cost of care is in 440 regions across all 50 states, including 13 in Michigan by visiting Genworth’s Cost of Care website.
About Genworth’s 2015 Cost of Care Study
Genworth's annual Cost of Care Study is one of the most comprehensive studies of its kind, covering nearly 15,000 long term care providers nationwide. The survey includes 440 regions which include covering all Metropolitan Statistical Areas defined by the 2014 Office of Management and Budget. Genworth annually surveys the cost of long term care across the U.S. to help Americans plan for the potential cost associated with the various types of long term care available in their preferred location and setting. CareScout®, part of the Genworth Financial family of companies, has conducted the survey since 2004. Located in Waltham, Massachusetts, CareScout has specialized in helping families find long term care providers nationwide since 1997. Genworth's 2015 Cost of Care Study was conducted during January and February 2015.
About Genworth Financial
Genworth Financial, Inc. is a leading Fortune 500 insurance holding company committed to helping families become more financially secure, self-reliant and prepared for the future. Genworth has leadership positions in long term care insurance and mortgage insurance and competitive offerings in life insurance and fixed annuities that assist consumers in solving their insurance, retirement and home ownership needs.
Genworth operates through three divisions: U.S. Life Insurance, which includes long term care insurance, life insurance and fixed annuities; Global Mortgage Insurance, containing U.S. Mortgage Insurance and International Mortgage Insurance segments; and the Corporate and Other Division, which includes the International Protection and Runoff segments. Products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth, headquartered in Richmond, Virginia, traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com. From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com. From time to time, Genworth's publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at http://genworth.ca and http://www.genworth.com.au.
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