Costs of Home Health Care Services Up in 2008

The national survey of adult day services and home care costs which found that the national average daily rate for adult day services is $64, up $3 per day from 2007. The national average hourly rate for home health aides is $20, a $1 or 5% increase from 2007, though the 2008 national average hourly homemaker/companion rate is $18, unchanged from last year.

The maximum reported daily costs for adult day services are highest in the state of Vermont ($141 daily) and lowest in Montgomery area, Alabama ($27), according to the report. For both home care categories, rates are lowest in the Shreveport, Louisiana area ($12) and highest in two areas of Minnesota – Minneapolis/St. Paul ($28) for home health aides and Rochester ($26) for homemaker/companions. Rate variances reflect regional cost differences, local demand and pricing practices, services included and differences in state-level reporting requirements.

Home health aides provide assistance with daily activities such as bathing and dressing and some health-related services, while homemaker/companions generally provide comfort and companionship in addition to meal preparation and light housekeeping. All home care agencies surveyed were licensed, if required by their state.

Adult day services (ADSs) provide older adults with an out of home environment providing social and some health services. Most centers provide lunch, recreational activities, health/therapeutic services, personal care, and transportation. Current codes, laws, and regulations governing ADSs are not uniform among the states. Although many require licensing or certification, they are not federally regulated. All adult day centers surveyed for this report were licensed, if required by state law, according to the announcement.

Methodology

This survey of adult day services and home care agencies in all 50 states and the District of Columbia was conducted by telephone in July and August 2008 by LifePlans, Inc., for the MetLife Mature Market Institute. Results presented in this report are representative of the sample of adult day services and home care agencies in the areas surveyed.

The states were divided into three groups, according to the population – under 3 million, 3 to 10 million, and over 10 million. These groupings were determined using data from the 2000 U.S. Census. The cities/areas surveyed were chosen on the basis of population and the ability to obtain a reasonably balanced sampling. Vermont is the only state that requires adult day services to charge an hourly rate rather than a daily or half day rate, which is common among most of the facilities in other states.

This year's study includes expanded coverage of statewide averages for all 50 states, in addition to rates for each state's largest metropolitan regions.

Regional cost breakdowns for all three types of care are: