While long term care costs continue to rise nationally, the cost for in-home care is rising at a much slower pace. According to Genworth’s 2010 Cost of Care Survey, the cost to receive care in the home has risen at an annual rate of just 1.7 percent over the past five years. That compares to annual increases of 6.7 percent for assisted living facilities, and 4.5 percent for a private room in a nursing home, over the same period.

This is important to note given that a majority of Americans say they wish to receive care in the home. According to another Genworth survey conducted earlier this year, when asked to identify the setting most preferred to receive long term care, 78 percent chose the home, 18 percent chose assisted living, and only 2 percent selected a nursing home. For most people, the ability to live independently is critical to maintaining quality of life. Many may be surprised to learn that in-home care could even be their most cost-effective choice.

Nearly two-thirds of Americans over age 65 will need long term care at home or through adult day health care, or care in an assisted living facility or nursing home. And while most people think of long term care as impacting only those in their senior years, 40 percent of people currently receiving long term care services are ages 18 to 64.4

Now in its 35th year as a leading provider of long term care insurance, Genworth’s Cost of Care Survey helps raise public awareness of the various options available beyond just nursing home facilities, and the costs associated with each.

2010 Cost of Care Survey: Key Findings

Looking across the long term care services landscape, Genworth’s 2010 Cost of Care Survey identified some key trends that have emerged in the last five years. Overall, while the cost of care among facility-based providers has steadily increased, home care costs remained relatively flat.

Nursing Home Costs Continue to Rise

In 2005 the median annual rate for a private nursing home room was $60,225, compared with the 2010 median annual rate of $75,190. This means that Americans can expect to pay approximately $14,965 more per year today for a nursing home than they had to pay in 2005.

Home Care Costs Holding Steady

In contrast, rates charged by home care providers for “non-skilled” services have not experienced significant growth over the past five years. The national hourly private pay median rate charged by a licensed home health agency for a home health aide was $17.50 in 2005, while the 2010 hourly rate has gradually risen to $19. Home care rates have remained in check partly due to increased competition among agencies, the availability of unskilled labor, and the absence of costs associated with maintaining stand-alone health care facilities.

The Least and Most Affordable States for In-Home Care

Genworth’s 2010 Cost of Care Survey revealed that Alaska, Minnesota and Rhode Island are the most expensive states for home care, at a median rate of $25 per hour for a home health aide provided by a state-licensed agency. The most affordable states are Alabama and West Virginia, at a median rate of $15 per hour.

For more information, visit genworth.com.

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