Nursing Home Cost Continues Climb; Jumps 3.4% to
$77,745 a Year for Private Room
Genworth Study helps senior citizens and caregivers
compare local costs; assisted living also climbing but home health care
May 10, 2011 – The cost of a private room in a
nursing home jumped 3.4 percent in the last year to a staggering $77,745
a year, according to Genworth’s 2011 Cost of Care Survey. Not far behind
is a 2.4 percent jump in the cost assisted living facilities, which is
$39,135 a year. The bright light was on home health care, which most
senior citizens prefer, that held steady.
At $18 per hour for homemaker services and $19 an
hour for home health aide services, the median hourly cost to receive
care in the home remained flat over the past 12 months.
Knowing Local Care Costs for Productive LTC
“Understanding local caregiving expenses is an
essential first step for families faced with rising care costs,” said
Buck Stinson, president, U.S. Life Insurance Products at Genworth.
Cost of Care Survey arms consumers with the knowledge to have
informed conversations, whether they are speaking with a family member,
a care provider or financial professional, about how they might
realistically pay for care.”
population needing long-term care is large and growing. An estimated 10
million have enough trouble performing acts of daily living - like
bathing, dressing and eating - that they require assistance
Now in its 8th year, Genworth’s Cost of Care Survey
not only provides Americans with national and local long term care cost
data, but also information on cost inflation over time.
Armed with this
information, consumers and their advisors can:
● Develop a comprehensive financial plan to
cover anticipated future long term care costs
● Conduct an informed discussion with family
members to address future long term care needs and preferences
● Negotiate more effectively with providers of
long term care services
Negotiating With Care Providers: It Never Hurts
Some consumers may be surprised to learn that they
have the power to negotiate with care providers to help contain costs,
according to Genworth. Care providers, particularly assisted living
facilities and home care agencies, often face stiff competition in their
Consumers should feel comfortable addressing the
issue of costs, and the opportunity to lower them, when discussing care
options with a provider of long term care services. Genworth’s Cost of
Care Survey provides localized cost data that empowers families to
confidently discuss care costs and options with service providers.
Know What to Ask: Tips for Reducing Caregiving
While nursing homes generally do not discount their
rates because they are strongly influenced by the effect of
Medicare/Medicaid on their overall business plans, assisted living
facilities and home care providers are more apt to do so. Tips on where
to start when negotiating with a long term care provider include:
Know Local Costs: Genworth’s
Cost of Care Map
provides the median cost of long term care across the U.S. to help
consumers plan for the potential costs associated with the various types
of long term care available in their preferred location and setting.
Fee Waivers: Assisted living facilities often charge a one-time fee when a client
first moves in. If the facility is in a competitive market, or has a
surplus of vacant units, they may discount or waive this fee (or offer
other discounts such as free rent for a period of time).
Special Rates: Facilities will sometimes have a special rate if residents move in
at the first of the month or during a time that is known to have higher
Vacancy Rates: Facilities may allow a resident to choose a more expensive room, at
a lower price, if vacancies are currently high.
Lower Hourly Rates: Home care agencies may lower their hourly rate if the services
needed are easy to staff and long term, such as a weekday schedule that
is predicted to last several months.
Shop Around: If a home care agency’s fees are at the high end of the local range,
they may lower rates if they know the client is interviewing several
agencies and cost is an important factor. Let care providers know if a
lower rate has been quoted elsewhere for the same services.
Agencies usually charge a premium for weekend services. For a client
that also engages services for a significant amount of weekday hours,
the agency may waive this premium.
Ask for an Upgrade: Nursing homes generally do not discount their rates, however,
certain extra amenities, or a private room upgrade, may be available
under certain circumstances.
It is important to note that most of these price
concessions are based on the availability of staff, or residential
units, which is a factor that fluctuates often for some businesses.
Contacting several providers before making a final decision offers the
best chance of securing safe, appropriate services at a reasonable rate.
“While consumers should seek out quality and value
when shopping for long term care, it is crucial that they have a
financial plan in place to pay for long term care,” said Stinson. “The
cost of long term care remains one of the biggest risks to one’s
retirement security, especially with ever-increasing healthcare costs.”
Check cost of care in your market
For consumers interested in learning more about the
cost of care in their local market, Genworth offers an interactive map
of long term care costs in 437 regions across all 50 states at
www.Genworth.com/CostofCare. The site offers a range of educational
tools that help consumers compare costs across geographies, project
future costs and share comparisons and calculations with family, friends
or a financial professional.
• Find specific cost information that matters to
you — by state and type of care setting for 437 cities and regions
across the country
• Compare costs across up to three locations — for
instance, where you live currently, and where you might like to retire
• Calculate the cost of care 10, 15, 20, 25 and 30
years out so you can plan well for your future • Print your comparisons
and calculations to share with family, friends and your financial
• Download the full survey report, complete with
executive summary, and overviews of long term care services and
financing options, or just download a specific state’s data
“Let’s Talk” campaign was developed to help families initiate
conversations about long term care preferences, options, and strategies.
Genworth’s Cost of Care Survey, is described as the
most comprehensive study of its kind, covering nearly 15,500 long term
care providers nationwide. The survey includes 437 regions which cover
all Metropolitan Statistical Areas defined for the 2010 U.S. census.
Genworth annually surveys the cost of long term care across the U.S. to
help Americans plan for the potential costs associated with the various
types of care available in their preferred location and setting.
CareScout®, part of the Genworth Financial family of companies, has
conducted the survey since 2004. Located in Waltham, Massachusetts,
CareScout has specialized in helping families find long term care
providers nationwide since 1997. Genworth’s 2011
Cost of Care Survey was conducted during January, February and March
About Genworth Financial
Genworth Financial, Inc. (NYSE:GNW)
is a Fortune 500 global financial security company. Genworth has more
than $100 billion in assets and employs approximately 6,500 people with
a presence in more than 25 countries.
• Nursing Home Abuse,
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