Costs for nursing home increase at average rate of 7%/year since 2004
Via KFF Daily Health Policy Report:
Costs for nursing homes, assisted livingfacilities and some in-home care services have increased for a fifthconsecutive year and might continue to increase as a result of anexpected shortage of long-term health care workers, according to astudy released on Tuesday by Genworth Financial, the AP/Houston Chroniclereports. For the study, researchers examined data from more than 10,000nursing homes, assisted living facilities and in-home care providersnationwide.
The study found that private rooms in a nursing homethis year on average cost $76,460 annually, or $209 daily, a 17%increase from $65,185 in 2004. In addition, the study found thatassisted living facilities this year on average cost $36,090 annually,a 25% increase from $28,763 in 2004. The study also found thatMedicare-certified home health aides this year on average cost $38 perhour and that the cost has increased by 7% annually over the past fouryears. Non-Medicare certified in-home care providers this year onaverage cost $18 per hour for homemaker services and $19 per hour forhome health aide services, about the same as in 2004, the study found.
BuckStinson, president of the long-term care insurance business atGenworth, said the study indicates that the “expense of just a fewyears of long-term care in a facility or at home can very quickly wipeout a lifetime of savings.” He added that baby boomers “need to do morethinking about their own retirement plan and how they’re going to age.”
A companion study released by Genworth found that low wages andbenefits, as well as a lack of training and career-advancementpotential, have led to problems with recruitment and retention ofemployees in the elder care industry. Stinson cited a need to “recruitclose to 200,000 people a year to keep pace with the agingdemographic.” In addition, the companion study found that adult dayhealth care this year on average cost $15,000 annually, or $59 daily(Alt Powell, AP/Houston Chronicle, 4/29).
The studies are available online.