All Long-term care costs rose sharply in 2020. However, assisted living facility costs increased the most, according to Genworth’s latest annual Cost of Care Survey. The across-the-board rises were due in part to increased costs brought on by the coronavirus pandemic.
In the past year…
- Assisted living facility rates grew 6.15% for a median cost of $51,600 per year or $4,300 per month.
- Home health aides — the median annual cost rose 4.35% to $54,91, Genworth reports.
- Private nursing home room — the median cost rose 3.57% to $105,850
- Semi-private room in a nursing home — the median cost is now $93,075, up 3.24% from 2019.
- Homemaker Services — the national median annual rate climbed 4.44% to $53,768.
In response to this year’s price increases, Genworth conducted a follow-up study to understand how COVID-19 is impacting the cost of care. Genworth found that the following were contributing to rate rises:
- labor shortages
- personal protective equipment costs
- regulatory changes
- employee recruitment and retention
- wage pressure, and
- supply and demand
The only care setting where costs did not increase was adult day care. Adult day care provides support services in a protective setting during part of the day. Costs for adult day care actually fell from $75 to $74 a day, a 1.33% decrease. Perhaps, this decrease is because the pandemic forced many adult day care sites to close.
Alaska continues to be the costliest state for nursing home care by far, with the median annual cost of a private nursing home room totaling $436,540. Missouri was the most affordable state, with a median annual cost of a private room of $68,985.
The 2020 survey, conducted by CareScout for the seventeenth straight year, was based on responses from 14,326 nursing homes, assisted living facilities, adult day health facilities and home care providers. Survey respondents were contacted by phone during July and August 2020.
As the survey indicates, long-term care is growing ever more expensive. Contact Duckett Law LLC to learn how you can protect some or all of your family’s assets from being swallowed up by these rising costs.
For more on Genworth’s 2020 Cost of Care Survey, including costs for your state, click here.
