Private Room Rate in Nursing Homes Steady in 2008;
Semi-Private, Assisted Living Climb
MetLife Mature Market Institute report gives nursing
home, assisted living rates for U.S. states, key cities
Nov.
4, 2008 - Average rates for a private room in a nursing home remained
basically unchanged nationally from 2007, while semi-private rates
increased 1.1%, from $189 daily or $68,985 annually in 2007, to $191
daily or $69,715 annually in 2008, according to the 2008 MetLife Market
Survey of Nursing Home & Assisted Living Costs released at the end of
October.
Seniors considering reverse mortgages lowering
their home values, new housing legislation helps older
Americans, says reverse mortgage lender in other studies
50-year old Baby Boomer earning $50,000, providing
four years of long-term care to a family member, could lose more than
$140,000 in wages, retirement plans, and social security
The MetLife Mature Market Institute reports that
average assisted living rates increased by 2.1%, from $2,969 monthly or
$35,628 annually in 2007, to $3,031 monthly or $36,372 annually in 2008.
● The highest daily rates for nursing homes are
in Alaska, $577 for a private room and $566 for a semi-private room.
● In 2008, the non-metropolitan and non-suburban
areas of Louisiana had the lowest daily rates for a private room in a
nursing home, averaging $127 per day.
● The non-metropolitan and non-suburban areas of
Minnesota and Oklahoma had the lowest semi-private room nursing home,
averaging $121 per day.
● For assisted living communities, Southern Maine
had the highest average monthly base rate at $4,708 and North Dakota had
the lowest average monthly base rate at $1,980.
The study also found that advertised base rates for
assisted living may not comprise the total cost families will pay when
additional charges, like those associated with providing additional
assistance, are added.
● The average monthly rate for assisted living
communities providing assistance with activities of daily living (ADL)
above the base rate is $386.
● The average monthly rate for providing
assistance with instrumental activities of daily living (IADL), such as
medication management, is $327.
● Assisted living communities in the basic
category (offering only basic services) cost an average of $2,873, while
those in the standard category (offering more services) have an average
base cost of $2,985, a 3.9% increase.
● Communities in the inclusive category (offering
still more services) have an average base cost of $3,354, a 12.4%
increase over “standard” and a 16.7% increase over “basic.”
“Families are often faced with choices of assisted
living communities in a local area, and must make comparisons and
decisions which may have a significant financial impact on them,” said
Sandra Timmermann, Ed.D., director of the MetLife Mature Market
Institute. “With this in mind, it is important to factor in any
additional services needed in order to obtain an accurate picture of the
full cost and quality of the community.”
Nursing home and assisted
living costs by region throughout the U.S.
Daily Nursing Home Costs (Private Room)
Monthly Assisted Living Costs
Alabama (AL)
$167
$2,425
Birmingham
$169
$2,912
Montgomery
$187
$2,573
Rest of State
$157
$2,202
Alaska
(AK)
$577
$4,645
Arizona
(AZ)
$214
$2,947
Phoenix
$222
$2,751
Tucson
$204
$3,157
RestofState
$215
$2,920
Arkansas
(AR)
$152
$2,289
LittleRock
$170
$2,675 *Little
Rock
Area
RestofState
$142
$2,134
California
(CA)
$249
$3,132
LosAngeles
$198
$2,235
SanDiego
$240
$2,538
SanFrancisco
$344
$3,669
RestofState
$226
$3,384
Colorado
(CO)
$200
$3,121
Denver
$200
$2,513
ColoradoSprings
$205
$3,329
RestofState
$198
$3,372
Connecticut
(CT)
$362
$4,286
Hartford
$359
$4,146 *Hartford
Area
Stamford
Area
$394
$4,403
Rest of State
$346
$4,303
Washington (DC)
$295
$4,414
Delaware
(DE)
$239
$4,053
Wilmington
$246
$4,410
Rest of State
$235
$3,638
Florida
(FL)
$218
$2,748
Jacksonville
$192
$2,988
Orlando
$224
$2,135
Miami
$220
$2,936
Rest of State
$228
$2,812
Georgia (GA)
$171
$2,732
Marietta
Area
$178
$2,861 *Alpharetta
Atlanta
$185
$2,738
Rest of State
$161
$2,642
Hawaii
(HI)
$306
$3,566
Honolulu
$277
Rest of State
$342
Idaho
(ID)
$192
$2,847
Boise
$215
$3,200
Rest of State
$181
$2,591
Illinois
(IL)
$202
$3,444
DesPlaines
Area
$263
$4,268 *Highland
Park
Area
Chicago
$168
$2,939
Peoria
$210
$2,806 *Peoria
Area
Rest of State
$178
$3,506
Indiana (IN)
$195
$2,573
Indianapolis
$187
$2,448
FortWayne
$213
$2,335 *Fort
Wayne
Area
Rest of State
$192
$2,758
Iowa
(IA)
$156
$2,424
DesMoines
$159
$2,550 *Des
Moines
Area
Rest of State
$155
$2,344
Kansas
(KS)
$147
$2,736
Wichita
$159
$3,031
Rest of State
$141
$2,580
Kentucky
(KY)
$184
$2831
Louisville
$204
$3,579
Lexington
$197
$2,884 *Lexington
Area
Rest of State
$169
$2,282
Louisiana
(LA)
$132
$2,318
BatonRouge
$135
$2,480
Shreveport
Area
$137
$2,338
Rest of State
$127
$2,266
Maine
(ME)
$255
$4,571
SouthernME
$283
$4,708
Rest of State
$241
$4,451
Maryland
(MD)
$248
$3,659
SilverSpring
$260
$4,316
Baltimore
$243
$2,818
Rest of State
$242
$3,775
Massachusetts
(MA)
$302
$4,192
Worcester
$295
$4,145 *Worcester
Area
Boston
$309
$4,143
Rest of State
$302
$4,240
Michigan
(MI)
$203
$2,943
Detroit
$169
$3,218 *Detroit
Area
GrandRapids
$234
$2,485
Rest of State
$210
$2,942
Minnesota
(MN)
$149
$2,524
Minneapolis/St. Paul
$160
$2,871
Rochester
Area
$168
$2,489
Rest of State
$135
$2,179
Mississippi
(MS)
$184
$2,541
Jackson
$180
$2,743 *Jackson
Area
Rest of State
$186
$2,375
Missouri
(MO)
$147
$2,628
SaintLouis
$175
$3,071
KansasCity
$144
$2,444 *Kansas
City
Area
Rest of State
$134
$2,474
Montana
(MT)
$174
$2,790
Billings
$177
$3,245
Rest of State
$172
$2,576
Nebraska
(NE)
$158
$2,407
Omaha
$202
$2,296
Rest of State
$138
$2,530
Nevada
(NV)
$213
$2,611
LasVegas
$226
$2,255
Rest of State
$206
$2,776
New Hampshire
(NH)
$266
$3,732
Manchester
$265
$3,858 *Manchester
Area
Rest of State
$266
$3,516
New Jersey
(NJ)
$287
$4,009
CherryHill
Area
$302
$3,259
Bridgewater
Area
$277
$4,079
Rest of State
$286
$4,356
New Mexico
(NM)
$189
$2,772
Albuquerque
$197
$2,805
Rest of State
$185
$2,730
New York
(NY)
$314
$3,362
NewYork
$361
$4,146
Syracuse
$287
$3,234
Rochester
$309
$3,081
Rest of State
$305
$3,164
North Carolina
(NC)
$192
$2,988
Raleigh/Durham
$205
$3,269
Charlotte
$196
$2,985
Rest of State
$182
$2,891
North Dakota
(ND)
$150
$1,980
Fargo
Area
$154
Rest of State
$148
Ohio
(OH)
$203
$2,987
Columbus
$203
$3,580 *Columbus
Area
Cleveland
$215
$3,139
Cincinnati
$216
$2,869
Rest of State
$191
$2,720
Oklahoma
(OK)
$153
$2,346
OklahomaCity
$161
$2,415
Tulsa
$173
$2,600
Rest of State
$140
$2,214
Oregon
(OR)
$231
$2,827
Portland
$228
$3,044
Eugene
$228
$2,885
Rest of State
$233
$2,619
Pennsylvania
(PA)
$243
$2,846
Pittsburgh
$269
$2,868
Scranton
$207
$2,494 *Scranton
Area
Philadelphia
$256
$3,098 *Philadelphia
Area
Rest of State
$245
$2,896
Rhode Island
(RI)
$246
$3,319
Providence
$247
$3,318
Rest of State
$246
$3,320
South Carolina
(SC)
$183
$2,726
Columbia
$183
$2,397 *Columbia
Area
Charleston
$188
$2,951
Rest of State
$180
$2,766
South Dakota
(SD)
$169
$2,341
RapidCity
Area
$190
$2,622
Rest of State
$158
$2,194
Tennessee
(TN)
$172
$2,807
Nashville
$191
$3,099 *Nashville
Area
Memphis
$170
$3,015
Rest of State
$161
$2,513
Texas
(TX)
$177
$2,882
Dallas/Ft. Worth
$188
$2,849
Houston
$180
$2,868
Austin
$167
$3,649
Rest of State
$172
$2,613
Utah
(UT)
$192
$2,425
Salt Lake City
$187
$2,428
Rest of State
$195
$2,423
Vermont
(VT)
$248
$4,375
Virginia (VA)
$202
$3,651
Alexandria
Area
$258
$3,709 *Northern
Virginia
Richmond
Area
$201
$3,357 *Richmond
Rest of State
$178
$3,734
Washington (WA)
$238
$2,799
Seattle
$275
$2,965
Spokane
$232
$2,445
Rest of State
$223
$2,893
West Virginia
(WV)
$203
$2,933
Charleston
Area
$201
Rest of State
$204
Wisconsin
(WI)
$216
$3,208
Milwaukee
$238
$3,428
Madison Area
$231
$3,224 *Madison
Rest of State
$198
$3,102
Wyoming
(WY)
$187
$2,741
National Average
$212
$3,031
According to the U.S. Census Bureau, in 2007, 68%
of nursing home residents were women and only 14% of all residents were
under the age of 65. The median age of residents was 83.1 years.
MetLife’s 2008 Market Survey found that 81% of all nursing homes
surveyed are freestanding facilities; 17% have an associated assisted
living unit or wing. Thirty percent of the nursing homes surveyed have
separate Alzheimer’s units.
The national average daily rate for a private room
in an Alzheimer’s unit is $219 ($79,935 annually). The average
semi-private room Alzheimer’s unit rate is $198 ($72,270 annually), $7
per day more than the standard rate.
It is estimated that more than 900,000 Americans
live in approximately 39,500 assisted living residences in the United
States. The National Center for Assisted Living reports that the average
age of an assisted living resident is 85 years old. The average length
of stay in assisted living is approximately 21 months, according to the
American Senior’s Housing Association.
Most assisted living communities create an
individual plan for each resident that details the services required.
That plan should be updated regularly to ensure
that residents receive proper care as their conditions change.
Fees for additional services can vary considerably
by community size. Regardless of size, base rate fees often cover only
some of the total costs needed. Services included in the base rate will
vary by community.
The survey of nursing homes and assisted living
communities in all 50 states and the District of Columbia was conducted
by telephone during September 2008 by LifePlans, Inc. for the MetLife
Mature Market Institute.
The states were divided into three groups according
to population—under 3 million, 3 to 10 million, and over 10 million.
These groupings were determined using data from the 2000 U.S. Census.
The cities/areas surveyed within the states were chosen on the basis of
population, and the ability to obtain a reasonably balanced sampling.
In 2008, the survey expanded its scope to provide
additional rate information for the “Rest of State,” Areas outside the
Metropolitan Statistical Areas (MSA) that were customarily measured.
This addition not only provides market survey information that is more
locally relevant, but it also allows for the calculation of statewide
averages in states where only MSA data were previously provided. The
2008 assisted living market data also includes groupings of facilities
by the number of services, which are included in the monthly base rate.
The number of services included in a base rate can
vary by facility and can significantly impact overall costs.
LifePlans, Inc., a risk management and
consulting firm, provides data analysis and information to the long-term
care insurance industry. The firm works with insurers, the federal
government, industry groups, and other organizations to conduct research
that helps these groups monitor their business, understand industry
trends, perform effective advocacy, and modify their strategic
direction.
MetLife Mature Market Institute Established
in 1997, the Mature Market Institute (MMI) is MetLife’s center on aging
and the 50+ market.
MMI’s groundbreaking research, gerontology
expertise, national partnerships, and educational materials work to
expand the knowledge and choices for those in, approaching, or caring
for the mature market.
The Mature Market Institute supports MetLife’s
long-standing commitment to identifying emerging issues and innovative
solutions for the challenges of life. MetLife, a subsidiary of MetLife,
Inc. (NYSE: MET), is celebrating 140 years and is a leading provider of
insurance and financial services to individual and institutional
customers.
Copies of the 2008 “MetLife Market Survey of
Nursing Home & Assisted Living Costs” can be found at
www.maturemarketinstitute.com under “What's New.” For a hard copy,
please email a request to the MetLife Mature Market Institute at
maturemarketinstitute@metlife.com or write to: MetLife Mature Market
Institute, 57 Greens Farms Road, Westport, CT 06880.
Nov.
4, 2008 - Average rates for a private room in a nursing home remained
basically unchanged nationally from 2007, while semi-private rates
increased 1.1%, from $189 daily or $68,985 annually in 2007, to $191
daily or $69,715 annually in 2008, according to the 2008 MetLife Market
Survey of Nursing Home & Assisted Living Costs released at the end of
October. 
June
30, 2008