Long-term care costs are on a steep upward trajectory while home healthcare services are rising at a much more gradual pace, according to The Genworth 2013 Cost of Care Survey.
Since Genworth started following national private nursing home costs 10 years ago, the median annual costs have gone up from $65,200 to $83,950, increasing at more than four percent a year. Costs for homemaker services and home health aides have remained relatively flat.
"There are many factors that go into rising care costs, from the number of available skilled professionals to real estate prices," said Pat Foley, president of distribution and marketing for Genworth. “Since 70 percent of Genworth's first time long-term care claimants choose in-home care, these costs have remained more manageable.”
Nationally, the 2013 median hourly cost of homemaker services and home health aide services is $18 and $19 respectively. Homemaker costs have risen just 1.4 percent since 2012 and 0.8 annually over the past five years. Home health aide services have risen 2.3 percent since 2012 and 1.0 percent annually over the past five years.
The costs to receive care in an assisted living facility are rising much faster. The median annual cost for care in an assisted living facility is $41,400. This represents an increase of 4.6 percent since 2012 and a 4.3 percent annual increase over the past five years. The comparable cost for a private nursing home room rose 3.6 percent from 2012 to 2013, to $83,950, or 4.5 percent annualized over the past five years.
Genworth's Cost of Care Survey covers nearly 15,000 LTC providers nationwide. The survey includes 437 regions which cover all Metropolitan Statistical Areas defined for the 2010 U.S. Census.