COST OF CARE
Do you remember what a candy bar cost when you were a kid, and know how much that candy bar costs now? Do you even raise an eyebrow when paying what you do for that candy bar today knowing what you used to pay when you were a kid? How about a gallon of milk or a gallon of gasoline? How about that scoop of ice cream? That is the definition of inflation. The cost of Long Term Care is also subject to inflation. With our population continuing to age in place, the need for Long Term Care continues to rise, causing Long Term Care costs to follow a similar trend.
Most long term care (LTC) plans will help you pay these rising costs while receiving care in any one of the three venues below. As seen here, these costs can vary from receiving care in your home versus in a facility. The range of costs per month shown represents the national averages. The percentages below indicate where people on claim presently are receiving their care. So, in looking at this visual, there are two important questions you want to begin asking yourself: “Depending on my health, ideally, where would I want to receive my care?” As well as, “how much of the cost do I want covered by my insurance plan?”
Note: The figure for Skilled Nursing Facility is a semi-private room. Actual figures for a private room place the cost in the range of $9-11,000 per month.
When beginning your long term care planning, it is important to know what the costs of care are in your area. Similar to medical costs, costs for long term care are continuing to rise each year. The amount these costs are rising does vary, but tends to follow a similar trend to that of the cost of living index. Not only will it be important to note what the costs of care are today, but what the estimated costs will be in the future and make the necessary preparations. Long Term Care insurance carriers are aware of this trend and have taken this into account when designing their product offerings. Most plans include various inflation options to choose from that will help grow your benefits so that your plan will keep up with the rising costs in the coming years. It is also important to consider which inflation option is the right fit for you, your family, and your situation. Below is a projection of what the cost of care will be in 30 years in the same three venues mentioned above.
You will also need to understand that Long Term Care costs not only vary by venue in which the care is received but also vary around the country and can even vary within your state. Understanding the specific costs in your area will help you as you are guided by your LTC advocate in designing a long term care plan that will be right for you and your family. You can see how the costs compare among some of the major cities around the country below.
The national monthly median costs of long term care for home care is $3,813. The monthly costs for an assisted living facility is $3,628 and the costs for a private room at a nursing home facility are $7,698. The map below indicates which states’ costs are above or below the median costs of a nursing home facility. States that are highlighted in green are above the median costs and the states highlighted in blue are below the median costs. Typically home care and assisted living facility costs follow the similar trend of the nursing home facility when compared to the national median costs. With all these facts and statistics shared, as well as many more, as your LTC nurse advocate, we are here to help guide you through all the necessary facts and processes in order to obtain the protection you are seeking.
While you are reaching out to us, feel free to go to www.genworth.com/costofcare or click on the button below where you will be able to look up the costs in your area and even see what the estimated costs will be 5-30 years from now.