Long-term care costs are still rising, but not as much as other goods and services, according to John Hancock Financial by LifePlans.
The Massachusetts-based long-term care services and research company recently surveyed more than 11,000 providers, including nursing homes, assisted living facilities and home healthcare agencies. The survey indicates the average annual cost of care in the United States is $85,775 for a private room in a nursing home, $75,555 for a semi-private room in a nursing home and $39,240 for an assisted living facility. The average cost of care received at home was approximately $20 per hour.
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To understand how long-term care costs are trending over time, John Hancock calculated a nine-year average based on data gathered from providers across the country for John Hancock's 2002, 2005, 2008, and 2011 Cost of Care Surveys. These average annual increases in the cost of care in various settings closely track the long-term average annual rate of inflation, which is 4.1 percent.
Specific findings include:
- The 2011 average cost of a private nursing home room ($235 a day/$85,775 annually) has risen an average 3.5 percent per year.
- The 2011 average cost of a semi-private nursing home room ($207 a day/$75,555 annually) has risen an average 3.2 percent per year.
- The 2011 average cost for a month in an assisted living facility ($3,270 a month/$39,240 annually) has risen an average 3.4 percent per year.
- The 2011 average cost for a home health aide ($20 hourly/$37,440 annually) has risen an average 1.3 percent per year.
"The ongoing effect of the recession on the nest eggs of so many individuals underscores the importance of planning for the future," said Marianne Harrison, president of John Hancock LTC. "Our cost of care studies are intended to help people better understand and prepare for their future long-term care needs."