Assisted Living Rates Increase Slightly After Big Jump Last Year

November 3, 2006 – The cost of assisted living costs in the U.S. rose a modest 2.2 percent this year but that follows a giant 15.1 percent jump in 2005, according to figures released by MetLife Mature Market Institute.

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The private pay rate for an individual at an assisted living facility, according to the 2006 MetLife Market Survey of Assisted Living Costs, averaged $2,968 per month, or $35,616 yearly. That’s up 2.2% or $63 from 2005 and 17.6% from 2004.

Rates range considerably by region with North Dakota the lowest ($1,742 monthly) and the Bridgewater, New Jersey area the highest ($5,197 monthly).

Almost half (43%) of the facilities in this survey indicated that they provide dementia care for residents, with 23% reporting that they charged an additional fee for this care, ranging from $750 to $2,200 monthly.

“While there was a relative stabilization of prices last year, assisted living continues to be costly since it is not covered by Medicare and most other medical insurance,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute.

Monthly costs for various regions in the 50 states and the District of Columbia
State	Area	Mo. Fee
AK	Statewide	$3,332
AL	Birmingham	$2,642
AL	Montgomery	$2,352
AR	Little Rock	$2,565
AZ	Phoenix	$2,719
AZ	Tucson	$2,718
CA	Los Angeles	$2,426
CA	San Diego	$2,066
CA	San Francisco	$3,636
CO	Colorado Springs	$2,967
CO	Denver	$2,814
CT	Hartford Area	$3,303
CT	Stamford Area	$4,802
DC	Washington	$4,154
DE	Wilmington	$4,043
FL	Jacksonville	$2,567
FL	Miami	$3,060
FL	Orlando	$2,379
GA	Alpharetta	$2,826
GA	Atlanta	$2,985
HI	Statewide	$3,406
IA	Des Moines Area	$2,597
ID	Boise	$2,807
IL	Chicago	$3,127
IL	Des Plaines Area	$4,479
IL	Peoria Area	$2,555
IN	Fort Wayne Area	$2,395
IN	Indianapolis	$2,305
KS	Wichita	$2,793
KY	Lexington Area	$2,610
KY	Louisville	$2,808
LA	Baton Rouge	$2,480
LA	Shreveport Area	$2,033
MA	Boston	$4,180
MA	Worcester Area	$3,860
MD	Baltimore	$3,380
MD	Silver Spring	$4,750
ME	Statewide	$4,040
MI	Detroit Area	$3,029
MI	Grand Rapids	$2,397
MN	Minneapolis/St. Paul	$2,754
MN	Rochester	$2,675
MO	Kansas City Area	$2,577
MO	St. Louis	$3,405
MS	Jackson Area	$2,180
MT	Billings	$2,779
NC	Charlotte	$2,696
NC	Raleigh/Durham	$3,252
ND	Statewide	$1,742
NE	Omaha	$2,693
NH	Manchester Area	$3,620
NJ	Bridgewater Area	$5,197
NJ	Cherry Hill Area	$3,563
NM	Albuquerque	$2,517
NV	Las Vegas	$2,622
NY	New York City	$3,371
NY	Rochester Area	$2,891
NY	Syracuse Area	$2,559
OH	Cincinnati	$2,879
OH	Cleveland	$2,697
OH	Columbus	$3,536
OK	Oklahoma City	$2,412
OK	Tulsa	$2,538
OR	Eugene	$2,991
OR	Portland	$2,596
PA	Philadelphia	$3,211
PA	Pittsburgh	$2,582
PA	Scranton Area	$2,177
RI	Providence	$3,143
SC	Charleston	$2,758
SC	Columbia Area	$2,423
SD	Rapid City Area	$1,966
TN	Memphis	$2,678
TN	Nashville	$3,264
TX	Austin	$3,413
TX	Dallas/Fort Worth	$2,569
TX	Houston	$2,995
UT	Salt Lake City	$2,356
VA	Northern Virginia	$4,118
VA	Richmond	$2,733
VT	Statewide	$3,994
WA	Seattle	$2,589
WA	Spokane	$2,708
WI	Madison	$3,116
WI	Milwaukee	$2,983
WV	Statewide	$2,916
WY	Statewide	$2,424
U.S.	Average	$2,968

“For those in need of care and supervision who cannot manage at home, but who do not need the level of care provided in a nursing home, assisted living is becoming an increasingly popular option, especially for those with Alzheimer’s disease. Assisted living provides a comfortable environment for independent living and, yet, meets the individual’s need for some degree of care."

Assisted living bridges the gap between home care and nursing homes. Residents of assisted living facilities may need assistance with Activities of Daily Living (bathing, dressing, eating, transferring in and out of chairs or beds, and continence) or household chores.

Assisted living facilities are appropriate housing for those who need help in day-to-day living, but who do not need the round-the-clock skilled care found in nursing homes.

	Alzheimer's Care in Assisted Living Facilities
	In an earlier survey, MetLife asked assisted living facilities if the provided dementia care. Of those surveyed, 61% provided dementia care, with half providing the care at no additional cost. For those charging additional amounts, rates ranged considerably, from an additional $50 to $3,000 per month, although the majority (60%) reported additional costs of $1,000 per month or less. Nursing home administrators were asked if their facility had an Alzheimer’s wing or unit, and what, if any, was the additional cost per day for that unit. Of the facilities surveyed, 36% had separate dementia units, and 80% did not charge additional fees. Those that did assess additional fees for dementia units charged amounts, from $10 - $25 additional per day.

Assisted Living Facilities can also often meet the need of those who have Alzheimer’s disease or a similar disorder who may not require hands-on physical assistance, but who need supervision and a protected environment to assure that their daily needs are met and that safety concerns that often accompany dementia are addressed.

Oversight of assisted living facilities is handled primarily by state governments rather than federal regulation. In 2005, several states strengthened existing standards or implemented new standards for facilities with residents with Alzheimer’s disease or another form of dementia. Some states increased training requirements for staff or added disclosure requirements to prospective residents.

Monthly private pay base rates, which are defined as room and board and typically at least two meals per day, housekeeping and personal care assistance, were obtained for private rooms with private baths in assisted living facilities.

Some facilities also charge a one-time entrance fee, and have additional fees for items such as having meals delivered to living quarters, for dementia care, or for extra transportation services. Most regular medical insurance plans, including Medicare, do not cover assisted living facilities. While an increasing number of state Medicaid waiver programs are providing coverage for assisted living facilities for low-income individuals who qualify, most residents pay privately or through a long-term care insurance policy.

The American Association of Homes and Services for the Aging estimates that more than one million Americans live in almost 33,000 licensed assisted living residences in the United States. The 2006 Overview of Assisted Living conducted by the Assisted Living Federation of America and a number of other organizations said the median age of female residents is 87 and the median age of males is 85; on average residents needs assistance with two activities of daily living.

This survey of assisted living facilities in all 50 states and the District of Columbia was conducted by telephone during June and July 2006 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 the 2006 market survey, Baton Rouge replaced New Orleans.

The MetLife Mature Market Institute is MetLife’s information and policy resource center on issues related to aging, retirement, long-term care and the mature market. Staffed by gerontologists, the Institute provides research, training and education, consultation and information to support MetLife, its corporate customers and business partners. MetLife is a subsidiary of MetLife, Inc. (NYSE: MET), a leading provider of insurance and financial services with operations throughout the U.S. and the Latin America, Europe and Asia Pacific regions.

LifePlans, Inc., which conducted the analysis for the MetLife Mature Market Institute, is a risk management and consulting firm that 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.

The entire MetLife Market Survey of Assisted Living Costs can be found at: www.maturemarketinstitute.com under “What’s New."

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