Nursing Home Costs Now Pressing $80,000 a Year Finds
MetLife Market Survey
Survey finds ‘notable increases’ for nursing homes,
assisted living, day services and home care
Oct. 28, 2009 - Price rollbacks throughout the U.S.
economy during the past year did not apply to long-term care service
providers, according to the 2009 MetLife Market Survey of Nursing
Home, Assisted Living, Adult Day Services, and Home Care Costs.
Private room nursing home rates rose 3.3% to $219 per day or $79,935 per
year, while assisted living also rose 3.3% on average to $3,131 per
month. Home health care aides now cost an average of $21 per hour, a 5%
increase; adult day services run $67 per day, a 4.7% increase.
For nursing homes, the highest costs for a private
room were reported in Alaska ($584/ day) while the lowest were in
Louisiana. Assisted Living costs were highest
in Wilmington, Delaware ($5,219/month) and lowest in North Dakota
($2,041/month).
The highest Home Health Care Aide rates were $30 per
hour in the Rochester, Minnesota area, while the lowest were reported in
the Shreveport, Louisiana area at $13 per hour.
Adult Day Services were
highest in Vermont at $150 per day and lowest in Montgomery, Alabama at
$27 per day.
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The study, which groups Assisted Living Communities
into three categories—“basic” (five or fewer services), “standard” (six
to nine services) and “inclusive” (10 or more services)—notes
differences from 2008 in the number of communities in each category.
More are classified in the middle “standard” range and fewer in the
“basic” category.
Communities in the “standard” category include more
services in their base rates, but, on average, also have higher base
rates.
The study also found that those who enter an Assisted Living
Community with Alzheimer’s disease, or those who develop Alzheimer’s
later, can expect to pay more for that care, with an average monthly
cost of $4,435.
“These across-the-board increases may be
surprising to many given the economy over the past year,” said Sandra
Timmermann, Ed.D, director of the MetLife Mature Market Institute.
“But, while the Consumer Price Index (CPI)
decreased overall during the past year, costs for medical care are 3.3%
higher, which parallels our findings on long-term care.
The change in
pricing methods at some assisted living communities may be another
factor, a warning to consumers to carefully compare prices at all
long-term care service facilities by considering both the base price and
the add-ins for additional services.”
Additional Long-Term Care Facts
>> About three-quarters (73%) of the home health care
agencies surveyed provide Alzheimer’s training to their employees, and
almost all (98%) agencies surveyed do not charge an additional fee for
patients with Alzheimer’s.
>> About one-quarter (27%) of the home health
care agencies surveyed have a 24-hour or live-in rate.
>> The average
capacity at adult day service centers is 44.
>> The average client-to-staff
ratio is 6:1 with a maximum of 20:1.
Methodology
This survey of nursing homes, assisted living
communities, home care agencies, and adult day services in all 50 states
and the District of Columbia, including national figures and data from
87 individual markets across the country, was conducted by telephone
between July and October 2009 for the MetLife Mature Market Institute by
LifePlans, Inc.
For nursing homes, private-pay rates for long-term
(custodial) nursing care were obtained for private and semi-private
rooms throughout the U.S. At assisted living communities, costs were
obtained for room and board (at least two meals per day, housekeeping
and personal care) in one-bedroom apartments or private rooms with
private baths. Home care rates were based on hourly rates for home
health aides at licensed agencies and agency-provided
homemaker/companion services. Adult day service costs reflect daily
rates at licensed facilities for the majority, though licensing
requirements vary by state.
LifePlans, Inc.
LifePlans, Inc., a risk management and consulting
firm, provides data analysis and information to the long-term care
insurance industry. The firm works with insurers, the federal
government, industry groups, and other organizations to conduct research
that helps these groups monitor their business, understand industry
trends, perform effective advocacy, and modify their strategic
direction.
The MetLife Mature Market Institute
Established in 1997, the Mature Market Institute (MMI)
is MetLife’s research organization and a recognized thought leader on
the multi-dimensional and multi-generational issues of aging and
longevity. MMI’s groundbreaking research, gerontology expertise,
national partnerships, and educational materials work to expand the
knowledge and choices for those in, approaching, or caring for those in
the mature market.
MMI supports MetLife’s long-standing commitment to
identifying emerging issues and innovative solutions for the challenges
of life. MetLife, Inc. (NYSE: MET), through its subsidiaries and
affiliates, is a leading provider of insurance, employee benefits and
financial services with operations throughout the United States and the
Latin American, Europe and Asia Pacific regions. For more information
about the MetLife Mature Market Institute, please visit:
www.maturemarketinstitute.com.
The 2009 MetLife Market Survey of Nursing Home,
Assisted Living, Adult Day Services, and Home Care Costs can be
downloaded from www.maturemarketinstitute.com under “What’s New.” It can
also be ordered by e-mailing, maturemarketinstitute@metlife.com, or by
writing to: MetLife Mature Market Institute, 57 Greens Farms Road,
Westport, CT 06880.
>>
For the pdf copy of the survey, click here
More MetLife reports on Long-Term Care
Long-Term Care IQ: Removing Myths, Reinforcing Realities (1,873 kb)
LTC Quiz (1,252 kb)
