Costs of Long-Term Care Options

When we read the statistic that seven of ten older Americans will require long-term care, most of us do not visualize ourselves in that group. Most of us believe we will be in the lucky minority that does not require assistance with the activities of daily living.

We may also incorrectly assume that long-term care services are largely delivered in nursing facilities. However, increasingly, necessary care is being delivered in homes across the nation. In fact, it is now possible to purchase long-term care insurance that allows you to specify where you wish to receive care. Because consumers have more choices than ever before, it’s important to know the cost of care across the variety of settings. As the Genworth 2014 Cost of Care Survey reports, licensed health care practitioners such as a physician, registered nurse or social worker could recommend long-term care that could include the following:

  • Homemaker Services – “Hands-off” care such as cooking, cleaning or running errands: $19 an hour.
  • Home Health Aide Services – “Hands-on” personal care, but not medical care: $20 an hour.
  • Adult Day Health Care – Centers offer much-needed break to caregivers and include socialization, supervision and structured activities designed for individual needs. Some programs also provide personal care, transportation, medication management, social services, meals, personal assistance and therapeutic activities: $65 a day.
  • Assisted Living Facility – Living arrangements that provide personal care and health services for people who may need assistance with Activities of Daily Living, but wish to live independently. The level of care provided is not as extensive as that which may be provided in a nursing home. Assisted living is not an alternative to a nursing home, but an intermediate level of long term care: $3,500 monthly.
  • Nursing Home Care – These facilities provide a higher level of supervision and care than Assisted Living Facilities, including personal care assistance, room and board, supervision, medication, therapies and rehabilitation, and skilled nursing care 24 hours a day: Semiprivate room $212 a day/private room $240 a day.

For more than a decade, Genworth has tracked trends and national average costs across the long term care services landscape. Overall, while the cost of care among all care providers has steadily increased, the cost of facility-based providers has grown at a much greater rate than that for home care. Staying informed with the associated costs of long-term care plan is essential whether you plan to buy long-term care insurance or self-insure.

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