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Annual Long-Term Care Costs Move Above $70,000 in
2006
Genworth Financial poll shows 65% have no
long-term care plans
March 27, 2006 - The average cost of long term care
in nursing homes, assisted living facilities and in the home increased
over the past year, with assisted living and in-home costs rising more
sharply than nursing home care, according to Genworth Financial's annual
"Cost of Care" survey. And, in the face of rising costs for all
categories of long term care, Genworth found 65 percent of Americans
surveyed in a new national poll admit to having made no long term care
plans for themselves or a spouse.
The average annual cost for a private one-bedroom
unit in an assisted living facility rose 7 percent from the 2005 survey,
to $32,294, while the combined average hourly rate for a home health
aide for in-home long term care spiked 13 percent to $25.32 per hour.
The average annual cost for a private room in a nursing home rose
modestly by 2 percent over last year to $70,912.
Genworth's annual benchmark study surveyed more
than 9,000 nursing homes, assisted living facilities and home care
providers for its annual comprehensive view of long term care expenses.
Additional national polling about long term care by Public Opinion
Strategies was conducted in February and March among 600 Americans aged
40 and older. The Cost of Care study and a summary of the national poll
are posted on Genworth.com.
Alaska and New York remained the highest-cost
regions for nursing home care, while Louisiana, rural Missouri and
Kansas were the lowest-cost regions. Cost of care in urban regions is,
on average, 17 percent greater than in non- urban regions -- a 5 percent
increase over last year's regional findings.
"As the first wave of America's 77 million baby
boomers head into retirement this year, it becomes more critical for
Americans to seriously evaluate how they will maintain their lifestyles
as we live well into our 80's, 90's and beyond," said Buck Stinson,
president of Genworth's long term care insurance business. "It's good
news that the typical steep gains in nursing home costs have moderated
this year. But the fact remains that most American households remain
unprotected from the costly health challenges that come with greater
longevity."
According to the national survey by Public Opinion
Strategies, 65 percent of Americans admit to having made no long term
care plans for themselves or a spouse.
The poll also revealed most individuals recognized
the need to prepare for the cost of long term care, but were largely
unprepared. Many Americans surveyed also wrongly believed they had
insurance protection, felt that their savings would be adequate to cover
long term care costs, and incorrectly believed that Medicare would cover
long term care costs.
Following are key findings from the Genworth "Cost
of Care" survey, broken out by major category.
-- Nursing Homes: The average annual national cost
of a private room in a nursing home is $70,912, or $194 per day,
reflecting a 2 percent increase over 2005 rates of $190 a day. This
remains the most costly care option.
-- Assisted Living: A private one-bedroom unit in
an assisted living facility has an average annual cost of $32,294 -- a 7
percent increase over 2005. Connecticut (Bridgeport area) has the
highest annual cost at $57,566, while North Dakota and Arkansas were
lowest at about $21,000.
-- Home Care: The average hourly rate for home
health aides across all different provider types was $25.32, a 13
percent increase versus $22.43 a year ago. For homemaker services,
non-certified, licensed providers had hourly rates averaging $17.73,
versus $16.84 a year ago.
Genworth Financial commissioned CareScout to
conduct its annual Cost of Care survey. Research was conducted during
January and February 2006. The survey included feedback from more than
25,000 providers in order to complete more than 9,000 surveys of nursing
homes, assisted living facilities and home care providers in all 50
states and the District of Columbia.
About Genworth Financial
Genworth Financial (NYSE: GNW) is a leading
insurance holding company, serving the lifestyle protection, retirement
income, investment and mortgage insurance needs of more than 15 million
customers, with operations in 24 countries, including the United States,
Australia, Canada, Japan, Mexico, New Zealand, the United Kingdom and 17
other European countries. Genworth is the leading provider of long term
care insurance in the United States. For more information, visit http://www.genworth.com.
SOURCE Genworth Financial, Inc.
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