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Average LTC Costs Hikes More than Double

August 18, 2008 (PLANSPONSOR.com) -The average rate of increase for cost of long-term care has seen a sizable jump in the last 24 months from 5% to 13% depending on the type of service, according to a Prudential Financial study.

The average assisted living costs and average nursing home costs in Alaska are rated as the most expensive in the country at $82,956 per year and $183,595 per year respectively. Detroit ranked the highest for home health care with the hourly rate at $38.

A news release from the insurance provider said the study features state-by-state average costs associated with nursing homes, assisted living facilities, and home health care services.

The announcement said other important findings are:

  • Average costs for long-term care services increased over the past two years and are expected to continue to rise. The average daily cost for an assisted-living facility is now more than $100, or $3,241 per month. What's more, the average daily cost of a private room in a nursing home is now $217, or $79,205 annually.
  • Home health care experienced the smallest rate increase, rising just 5% over the past two years. The average hourly rate for a home health aide/certified nursing assistant increased by $1 in the past two years, to $21.
  • Costs for long-term care services continue to vary significantly by location, with Alaska, New York City, and Stamford, Connecticut consistently being the most expensive areas for nursing home and assisted living facilities, and Oklahoma City, St. Louis, and South Dakota being the least expensive.

Prudential is also launching an updated interactive consumer cost of care mapping tool on its Web site at www.prudential.com/insurance/longtermcare , designed to provide more in-depth state-specific cost detail-and in some cases city-specific-aimed at arming consumers with essential facts to help them make better financial decisions.

Fred Schneyer
editors@plansponsor.com

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