Genworth 2016 Annual Cost of Care Study: Costs Continue to Rise, Particularly for Services in Home

Denise
bar-charts-152544_640This morning, Genworth released the results of its Annual Cost of Care Study. According to the study, costs continue to rise, especially for services in the home, where the vast majority of Americans receive long term care and for a longer period of time than in facilities.[1]

According to the study, the median monthly costs for the services of a homemaker[2] or an in-home health aide[3] for 44 hours a week are $3,813 and $3,861, respectively. Homemaker costs are up 2.56% from 2015, marking the highest year over year increase across all care categories. By comparison, home care aide services rose modestly at 1.25% since 2015. Over the past five years, home maker costs have risen 11.1% and 6.6% for health aides.

The survey also found that year over year, the national median cost of care rose across all care settings, except adult day care, which decreased slightly. The monthly cost of a private nursing home room is $7,698, up 1.24% from 2015.  The cost of a semi-private room is up 2.27% to $6,844 per month. Assisted living communities saw a slight increase in costs of .8 percent to $3,628 per month. Adult day care costs fell 1.25%.

“Although the high cost of long term care in America is considered the ‘new normal,’ it does not change the reality of what is certainly one of the biggest societal issues of our time – that at least 70 percent of Americans over age 65 will need some form of long term care services and support during their lives,” said Tom McInerney, president and chief executive officer at Genworth.

Genworth also released results of research that found four out of five adults underestimate the costs of home healthcare. The survey found that nearly one-third of Americans (30%) incorrectly believe that costs for these services run under $417 per month[4], when in actuality, the national median rate is $3,861 per month for an in-home aide or $3,813 per month for homemaker care[5]. All told, the average American underestimates the cost of in-home care by almost 50%, according to the complementary Genworth study.[6]

“The data from our complementary study dramatically demonstrated the huge disparity between what consumers think costs are and what they actually are, which is why it’s so important for families to educate themselves about the costs and plan ahead for how they will pay for those costs before it’s too late,” said McInerney.

Genworth suggests these resource to help talk about and plan for care:

  • Genworth's “Let’s Talk” online platform offers a suite of tools and advice to assist families in beginning the planning discussion.

  • You can download Genworth’s Cost of Care App from iTunes.

  • 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 genworth.com/long-term-care-insurance/source/make-a-plan/payment-options/self-funded.html.

  • 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 longtermcare.gov.

  • The National Association of Area Agencies on Aging (n4a) provides a wide range of advisory resources for Americans who have questions about aging.


About Genworth's 2016 Cost of Care Study
Genworth's annual Cost of Care Survey is one of the most comprehensive studies of its kind, covering over 43,000 long term care providers nationwide. The survey includes 440 regions which include all Metropolitan Statistical Areas defined by the 2015 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. The survey also provides state-specific cost of care data for all 50 states and comparison to the national median. 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 2016 Cost of Care Survey was conducted during January and February 2016.

[1] How Much Will You Need? -- LongTermCare.gov, U.S. Department of Health and Human Services (Accessed on May 9, 2016)

[2] Homemaker services provide help with "hands-off" care -- household tasks that cannot be managed alone, such as cooking, cleaning and running errands.

[3] Home health aides offer services to people who need more extensive care. It is "hands-on" personal care, but not medical care. This is the rate charged by a non-Medicare certified, licensed agency.

[4] Genworth Long Term Care/Caregiving Online Survey, conducted January 2016

[5] Genworth 2016 Cost of Care Survey, conducted by CareScout, May 2016. CareScout is a Genworth company.

[6] Genworth Long Term Care/Caregiving Online Survey, conducted January 2016

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