Long term care is one of the most pressing issues facing Americans today, and it will only get more urgent as the nation ages. It’s NO SECRET financing long-term care is a massive problem for many Americans, and it will probably get worse as 10,000 “Baby Boomers” are turning 65 every day placing a greater demand on caregivers, assisted living and nursing home facilities in the future. By 2030 when the last of the baby boomers have turned 65, nearly one in five Americans will be of retirement age, according to the Pew Research Center’s population projections.
By 2040 there will be 82.3 million people 65+, more than twice the number in 2000. While people are living longer, many have little idea about the added pressures on them financially and emotionally for “LONG LIFE CARE” aka “LONG-TERM CARE”.
Demand For Services Drives The Cost For Care
As the population ages, so will the demand for services drives the COST FOR CARE. And, like everything else, costs will increase considerably in the future. This estimate is influenced by growth in the population of “Baby Boomers” in need of care and the future of fewer long-term care workers in relation to the aging “Boomer” generation. (U.S. Department of Health and Human Services, and U.S. Department of Labor).
When you consider planning, it’s important to be aware of these costs as they can have an impact on your future and retirement plans.
Almost 70% of people over 65 will need some
form of long term care services and support
at some point. (U.S. Department of Health and Human
Services (www.longtermcare.gov), February 21, 2017)
The cost of long-term care services continues to rise.
You can get a good idea of current and future costs from these two interactive costs of care maps:
(Click Maps To Enter Your State)
The Mature Market Institute, “Metlife Market Survey on Nursing Home and Home Care Costs 2002,” and The American Council of Life Insurers did a study in 2000, “Can Aging Baby Boomers Avoid the Nursing Home?” They reported that all LTC services would increase steadily over the next 30 years – resulting in expenses 4 times higher than they were in 2000. The one startling number based on an average nursing home stay of 2.6 years estimated a nursing home cost of $190,600 a year or $495,560 in 2030. The only thing that is relative to this enormous future cost would be current real estate values around us (2018) compared to what the same land or home cost 15, 25 or 35 years ago.
Genworth 2017 Cost of Care Survey, conducted by CareScout® June 2017.
Based on national median annual costs.
Genworth Financial, Inc. is a leading insurance holding company committed to helping families face the financial challenges of aging through its leadership position in long-term care insurance.
Here is a National Summary of 2017 Survey Findings:
Genworth provides a national summary each year, and over the past 14 years, Genworth has uncovered several trends across the long term care services landscape. Not surprisingly, the cost of all types of care has steadily risen over the years — from homemaker services to nursing home care.
The following information provides a high-level overview of the national median rates for the various types of care settings including changes since the 2016 survey, the five-year annual growth rate, as well as the methodology used for the survey.
Long term care can be provided in a variety of settings. A licensed health care practitioner, such as a physician, registered nurse or social worker, can determine a plan of care that could include the following:
HOME CARE SERVICES:
Homemaker Services: Services providing help with household tasks that cannot be managed alone. Homemaker services include“hands-off” care such as cooking, cleaning, and running errands. Five-Year Annual National Growth Rate 3.08%.
Home Health Aide Services: Home health aides offer services to people who need more extensive care. It is “hands-on” personal care, but not medical care. The rate listed here is the rate charged by a non-Medicare certified, licensed agency. Five Year Annual National Growth Rate 2.50%.
COMMUNITY CARE:
Adult Day Health Care: Provides social and support services in a community-based, protective setting. Various models are designed to offer socialization, supervision and structured activities. Some programs may provide personal care, transportation, medical management, and meals. Five Year Annual National Growth Rate 2.79%.
FACILITY CARE:
Assisted Living Communities: Residential arrangements providing personal care and health services. The level of care may not be as extensive as that of a nursing home. Assisted living is often an alternative to a nursing home or an intermediate level of long term care. Five Year Annual National Growth Rate 2.59%.
Nursing Home Care: These facilities often provide a higher level of supervision and care than Assisted Living Facilities. They offer residents personal care assistance, room and board, supervision, medication, therapies and rehabilitation, and onsite nursing care 24 hours a day. Five Year Annual National Growth Rate Semi-Private Room 3.28%. Five Year Annual National Growth Rate Private Room 3.76%.
CareScout® has conducted the Genworth Cost of Care Survey annually since 2004. Located in Waltham, Massachusetts, CareScout has specialized in helping families find long term care providers nationwide since 1997. This year, CareScout — a Genworth company — contacted more than 47,000 providers to complete over 15,000 surveys of nursing homes, assisted living facilities, adult day health facilities, and home care providers. Potential respondents were selected randomly from the CareScout nationwide database of providers in each category of long term care services. Survey respondents representing all 50 states, the District of Columbia and Puerto Rico were contacted by phone during May and June of 2017. Survey respondents were informed that survey data provided would be included in the Genworth 2017 Cost of Care Survey results. Survey questions varied based on the type of care provider. One of the most comprehensive surveys of its kind, the Genworth Cost of Care Survey publishes costs in 440 regions based on the 381 U.S. Metropolitan Statistical Areas (MSAs).
