National Study Finds Long Term Care Costs Continue to Rise
A new two year study has just been published by LifePlans Inc. on behalf of John Hancock for their findings on the rising costs of Long Term Care. In this study, LifePlans Inc. surveyed 16,000 providers of long term care which includes nursing homes, assisted living facilities and home health care agencies from all over the United States.
Parts of this study show how costs are trending upwards over time, including calculating the average increase in cost per year over the last 5 years. This study uses the John Hancock costs for care survey and shows results for all of the major types of care.
Private Nursing Room
The average cost for a private nursing room has risen on average, 3.6% per year from 2008 to 2013. The cost is now averaging $258 a day ($94,170 per year).
Semi-Private Nursing Room
A semi private room has also risen on average 3.6% a year over the last 5 years. The daily cost is up to an average $227 ($82,855 yearly).
Assisted Living Facility
Assisted living facilities' costs have risen at a slower pace over the last half decade, coming in at an average of 2.0% per year. The cost per day is now averaging $112.66 ($41,124 per year).
Adult Day Care
The 5 year average increase in cost is 1.6% at adult day care facilities. The average price per day is now $71 ($18,460 annually).
Home Health Aide
From 2008 to 2013 the average cost of a home health aide has risen 1.3% per year. The hourly cost is averaging $19 an hour ($29,640 annually for six hours of care a day, five days a week).
This study verified what we already knew; long term care costs continue to rise while millions of Americans remain uninsured for this type of care. The US Department of Health and Human Services reports that nearly 3 in 4 citizens will need long term care and these costs are not covered by your traditional health care plans or Medicare.
Put a Plan in Place To Protect Your Retirement Savings
By putting a long term care plan in place, you can be protected from these rising costs. If you've been considering Long Term Care Insurance to protect you from the financial burden of unexpected health events, now is the time to get more information from an LTC Specialist.