July 31, 2013 |

Private SNF care tops $94K per year, insurance survey says

Costs for those seeking long-term care have continued to increase across all provider options, according to the results of a biennial study.

Private and semi-private nursing home room costs rose an average of 3.6 percent in 2013, assisted living facility costs increased 2 percent, and adult day care costs went up 1.6 percent, found John Hancock Life Insurance Co.’s 2013 Cost of Care Survey, conducted by LifePlans Inc. About 16,000 nursing homes, assisted living facilities and home healthcare agencies in several cities across the country were surveyed.

“The cost of long-term care continues to be one of the most significant uninsured financial risks that an individual can face,” Michael Doughty, executive vice president and general manager of John Hancock Insurance, said in a statement.

The survey found that the average cost of care in the United States is $94,170 a year ($258 a day) for a private room in a nursing home, $82,855 a year ($227 a day) for a semi-private room in a nursing home, $41,124 a year ($3,427 a month) for an assisted living facility and $18,460 for adult day care, the survey found. The average cost for care provided in a home setting was about $29,640 a year ($19 an hour, assuming a five-hour work week of six hours per day). To determine how long-term care costs have trended over time, John Hancock calculated a five-year average based on a subset of common providers from its 2008, 2011 and 2013 surveys.

The company has an interactive Cost of Care Map and Calculator on its website; the tool is designed help individuals and families see the average daily, monthly and yearly costs of long-term care in various settings and cities across the United States and also view the potential impact of inflation on future costs. The company also has a free iPad/iPhone app.

Long-term care cost information is available from the U.S. government and other sources as well:

Financial services company Genworth announced its 2013 Annual Cost of Care Survey results in April. It also offers on online calculator and a free iPad/iPhone app.
The Department of Health and Human Services offers cost of care information at LongTermCare.gov.
The Federal Long-Term Care Insurance Program offers average cost of care information for several major cities. The program issponsored by the U.S. Office of Personnel Management, offers insurance by John Hancock Life and Health Insurance Co., and is administered by Long Term Care Partners, LLC.
The American Association for Long-Term Care Insurance offers rate information based on its 2012 National Long-Term Care Insurance Price Index.
MetLife’s 2012 Market Survey of Long-Term Care Costs and related information is available online.
Northwestern Mutual offers an online cost of care calculator based on a December 2012 survey.