New data from Genworth’s 2010 Cost of Care Survey shows that home care costs have risen at an annual rate of just 1.7% over the past five years. That compares to annual increases of 6.7% for assisted living facilities, and 4.5% for a private room in a nursing home, over the same period.¹

According to the survey, in 2005 the median annual rate for a private nursing home room was $60,225, compared with the 2010 median annual rate of $75,190. This means that Americans can expect to pay approximately $14,965 more per year today for a nursing home than they had to pay in 2005.

In contrast, rates charged by home care providers for “non-skilled” services have not experienced significant growth over the past five years. The national hourly private pay median rate charged by a licensed home health agency for a home health aide was $17.50 in 2005, while the 2010 hourly rate has gradually risen to $19. Home care rates have remained in check partly due to increased competition among agencies, the availability of unskilled labor, and the absence of costs associated with maintaining stand-alone health care facilities.

Alaska, Minnesota and Rhode Island are the most expensive states for home care, at a median rate of $25 per hour for a home health aide provided by a state-licensed agency. The most affordable states are Alabama and West Virginia, at a median rate of $15 per hour.

You can learn more about the cost of care in each state by visiting Genworth’s interactive map of long term care costs. You also can calculate costs 10, 15, 20, 25 and 30 years out.

¹Percentage increase represents the compound annual inflation rate for surveys conducted from 2005 to 2010.

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