RICHMOND, Va., Sept. 26, 2017 /PRNewswire/ -- For the 70
percent of people older than 65 who the experts say will need long term care at some point in their lives1, the costs
just notched up again.
According to the Genworth 2017 Cost of Care Survey released today, the annual median cost of long term care services increased an
average of 4.5 percent from 2016 to 2017, the second-highest year-over-year increase for nursing homes and home care since the
study began in 2004 and nearly three times the 1.7 percent U.S. rate of inflation.
Although the national median cost of receiving care rose considerably across all care options during the last 12 months, the
increase was most pronounced for home health aides:
- Home health aide services, up 6.17% to $21.50/hour
- Homemaker services, up 4.75% to $21/hour
- Adult day health care services, up 2.94% to $70/day
- Assisted living facilities, up 3.36% to $123/day or $3,750/month
- Semi-private room nursing home care, up 4.44% to $235/day or $7,148/month
- Private room nursing home care, up 5.50% to $267/day or $8,121/month.
"The purpose of the study is to raise awareness about the cost of aging and help start the conversation about planning for
long term care," said David O'Leary, president and CEO of Genworth's US Life Division. "We know
that most people prefer to begin receiving long term care in their homes and the good news is that home care is still more
affordable than nursing home care."
Labor shortage, tighter Medicare rules contribute to rising care costs
After remaining flat for some time, the cost of care at home has been escalating over the past two to three years.
"That's due to an increase in labor costs, caused by a shortage of caregivers, increases in minimum wages in some states, and new
health insurance and overtime requirements on the part of some providers," said Noreen Guanci, CEO
and co-founder of Long Term Solutions, which provides care coordination services and nurse assessments for Genworth long term
care insurance claimants.
Nursing home costs are increasing due to a combination of higher labor costs and tightened Medicare rules, which have resulted
in shortened hospital stays and sicker patients being sent to rehab nursing homes for shorter stays, where costs have risen to
cover those chronic medical conditions, she said.
Labor costs also figure into the rising cost of assisted living facilities. Room and board also has increased to accommodate
residents who are sicker, but not sick enough to require nursing home care, and the luxurious accommodations that private payers
demand, she said.
Most consumers assume government will pay for care
In a companion consumer sentiment survey conducted in conjunction with the 2017 Cost of Care Survey2, two-thirds of
respondents said they expect government programs to cover all or part of their long term care costs. But those consumers may be
surprised to learn the facts about these government programs.
Medicaid, the largest payor of long term care costs, has strict income and functionality requirements.3 Medicare
will pay for limited nursing home care following a three-day hospital stay, but only if the patient has been formally admitted to
a Medicare-certified nursing facility as an in-patient and not for observation, as is increasingly the case. Medicare also
does not pay for home care, if skilled nursing care is not needed.
"Our population is aging, living longer, and not prepared," O'Leary said. "At Genworth we are focused on this issue every day
and know first-hand how aging impacts families. Our hope is that people will take the first step by checking out our Cost of Care website or
app to start the conversation about planning for their own long term care needs."
Resources for Understanding Care Financing Options
As costs continue to rise and traditional sources of government funding become more restrictive, consumers can take advantage
of the following resources to educate themselves about the cost of care and alternative funding options:
About Genworth's 2017 Cost of Care Survey
Genworth's annual Cost of Care Survey is one of the most comprehensive studies of its kind, covering more than 47,000
long-term care providers nationwide who complete surveys for nursing homes, assisted living facilities, adult day health
facilities and home care providers. The survey includes 440 regions which include all Metropolitan Statistical Areas defined by
the 2015 Office of Management and Budget. Genworth annually surveys the cost of long term care across the U.S. to help Americans
plan for the potential cost associated with the various types of long term care available in their preferred location and
setting. The survey also provides state-specific cost of care data for all 50 states and Washington, D.C., and comparison to the national median. CareScout®, part of the Genworth
Financial family of companies, has conducted the survey since 2004. Located in Waltham, Massachusetts, CareScout has
specialized in helping families find long term care providers nationwide since 1997. Genworth's 2017 Cost of Care Survey was
conducted during May and June 2017.
About Genworth's Companion Long Term Care Consumer Sentiment Study
Genworth's companion Long Term Care Consumer Sentiment Study was conducted in collaboration with J&K Solutions, LLC. The
data from this omnibus study was collected from an online survey from Sept. 1-4, 2017. A
demographically representative sample of 1,200 adults ages 18 and older across the United States
were surveyed, providing a 95 percent confidence level plus or minus 3%. The sample followed the framework of the U.S.
Census data for age, gender, and region.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the
dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and
long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to
1871 and became a public company in 2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and
other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds
regarding new postings. Enrollment information is found under the "Investors" section of genworth.com. From time to time, Genworth's publicly traded subsidiaries, Genworth MI
Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their
operations. This information can be found at http://genworth.ca and http://www.genworth.com.au.
1 "Who Needs Care?" longtermcare.gov., U.S. Department of Health & Human Services, Feb. 21,
2017.
2 Genworth Cost of Care Companion Study, conducted Sept. 1-4, 2017.
3 "Medicare, Medicaid & More," longtermcare.gov, U.S. Department of Health
and Human Services, Feb. 21, 2017.
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SOURCE Genworth Financial, Inc.