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Benefits October 26, 2011
Survey Finds Costs Rise For Long-Term Care in U.S.
October 26, 2011 (PLANSPONSOR.com) - Costs continue to rise for those requiring long-term care in the U.S., reports the 2011 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs, conducted by the MetLife Mature Market Institute.
Reported by Tara Cantore
The survey found the national average rates for a private nursing home room increased 4.4% to $239 daily or $87,235 annually, in 2011. Assisted living base rates rose by 5.6% to $3,477 monthly or $41,724 annually. Adult day services went up by 4.5% to $70 per day. Home health aides and homemaker/companion service rates were unchanged at $21 and $19 per hour, respectively.
The highest average daily rates for nursing homes continue to be in Alaska, where rates decreased slightly to $655 for a private room compared to $687 in 2010. Costs were lowest in Louisiana, outside the Baton Rouge and Shreveport Metropolitan Statistical Areas (MSA), at an average of $141 per day for a private room.
For assisted living, the Washington, DC area had the highest average monthly base rate at $5,757, a 10% increase from last year. Arkansas, outside of the Little Rock MSA, had the lowest average monthly rate of $2,156, also an increase.
“This year’s increases are greater than previous years. The state of the economy, combined with rising health care and energy costs, are having a significant impact on long-term care rates. In fact, long-term care rates continue to outpace the medical inflation rate,” said Sandra Timmermann, Ed.D., Director of the MetLife Mature Market Institute, in a press release. “The result is dramatic protracted inflation that will impact consumers. As the cost of care continues to rise, Americans need to discuss long-term care planning with their families now, to ensure they receive the kind of care they want in the future. This is especially critical at a time when retirement savings rates are low.”
The MetLife survey of 2,003 nursing homes, 1,492 assisted living communities, 1,644 home care agencies, and 1,341 adult day services, in all 50 states and the District of Columbia was conducted by telephone between April and August 2011, by LifePlans, Inc. for the MetLife Mature Market Institute.
The 2011 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs can be downloaded from www.MatureMarketInstitute.com.