70% of people 65 and older will require some type of long-term care during their lifetime. This expense will vary based on the patient’s required level of care, care setting and geographic location, says Think Advisor’s recent article entitled “15 Cheapest States for Long-Term Care: 2020.”
A recent study by Genworth found that the cost for facility and in-home care services increased on average from 1.9% to 3.8% per year from 2004 to 2020. That amounts to $797 annually for home care and as much as $2,542 annually for a private room in a nursing home.
Genworth found that at the current rate, some long-term care costs are more than the 1.8% U.S. inflation rate.
These findings were taken from 14,326 surveys completed this summer by long-term care providers at nursing homes, assisted living facilities, adult day health facilities and home care providers. The survey encompassed 435 regions based on the 384 U.S. Metropolitan Statistical Areas, as defined by the U.S. Office of Management and Budget.
In a follow-up study, Genworth also found that these factors are contributing to the increase in long-term care costs:
- Labor shortages
- Personal protective equipment (PPE) costs
- Regulatory changes, such as updated CDC guidelines
- Employee recruitment and retention issues
- Wages demands; and
- Supply and demand.
The 15 cheapest states for long-term care costs *
15. Utah: $59,704
14. Kansas: $57,766
13. Iowa: $57,735
12. Kentucky: $57,540
11. South Carolina: $57,413
10. Tennessee: $56,664
9. North Carolina: $56,512
8. Georgia: $53,708
7. Mississippi: $52,461
6. Arkansas: $50,835
5. Oklahoma: $50,641
4. Texas: $48,987
3. Missouri: $48,753
2. Alabama: $48,240
1. Louisiana: $44,811
*According to the 2020 Genworth’s cost of care survey. These long-term care costs were taken as an average of the state’s homemaker services, home health aide services, day health care services, assisted living costs and nursing home costs.
Reference: Think Advisor (Dec. 14, 2020) “15 Cheapest States for Long-Term Care: 2020”
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