According to Genworth’s annual cost of long-term care survey, annual nursing home charges have only continued to increase, due in large part to higher labor costs. The monthly charge for a private skilled nursing home room rose about 5.5% to $8,121 per month, or a cost of $97,450 per year. Monthly charges for a semi-private skilled nursing home room also rose over 4.4%, to $7,148 per month, or $85,775 per year. Meanwhile, assisted living costs rose 3.4% to $3,750 per month, or $45,000 per year, and home health care expenses rose 6.2% to $21.50 per hour, or more than $4,000 per month. Overall, long-term care services rose an average of 4.5%, which is the second-highest annual increase in the last 14 years.
Additionally, long-term care insurance may be a necessity if these costs continue to steadily increase, as they have over the last several years. Ironically, however, sales of long-term care insurance have continued to decline precipitously. In 2016, only about 89,000 people purchased long-term care insurance policies, primarily through the private market, with the remainder being purchases through employers. At the market’s peak in 2002, about 750,000 bought long-term care insurance policies, or about eight times the number of policies sold this year. Experts attribute this sharp decline in long-term care insurance policies to the high costs of the policies and the increasing difficulty in purchasing them. For the many individuals who wait until their sixties to purchase long-term care insurance, they may find that they are not eligible to purchase it, simply due to the heightened likelihood of preexisting medical conditions that disqualify them from coverage.
These rapidly-increasing costs only underscore the need for careful Medicaid and long-term care planning well in advance of the need for long-term care. The long-term care attorneys of Legacy Law Center pride themselves on successfully guiding clients through the long-term care planning process, as well through any other related matters that may arise. We have the knowledge and resources to help you make the decisions that are best for you and your family. Don’t hesitate to call our Ann Arbor office today and learn how we can assist you.
Comments