Long-Term Care Costs Slowly Climbing

As with many things over time, the costs of long-term care (LTC) continue to climb. According to a study released today by John Hancock Financial, LTC costs have continued to rise, but not as much as other goods and services.

The 2011 Cost of Care study, conducted by Waltham, Mass.-based LifePlans Inc., surveyed more than 11,000 providers, including nursing homes, assisted living facilities and home health care agencies, in key cities across the country.

According to the results, the national average annual cost of care in the United States is $85,775 for a private room in a nursing home; $75,555 for a semi-private room in a nursing home; and $39,240 for an assisted living facility. The average cost of care received at home was approximately $20 per hour.

John Hancock calculated a 9-year average based on a comparison of data gathered from providers across the country for the insurer's 2002, 2005, 2008 and 2011 Cost of Care Surveys.

The average annual increases in the cost of care in various settings closely track the long-term average annual rate of inflation, which is 4.1%. Specifically:

▪ The 2011 average cost of a private nursing home room ($235 a day/ $85,775 annually) has risen an average 3.5% per year

▪ The 2011 average cost of a semi-private nursing home room ($207 a day/ $75,555 annually) has risen an average 3.2% per year

▪ The 2011 average cost for a month in an assisted living facility ($3,270 a month/ $39,240 annually) has risen an average 3.4% per year

▪ The 2011 average cost for a home health aide ($20 hourly/$37,440 annually) has risen an average 1.3% per year

 

 

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