LTC Costs Slowly Climb with Inflation Trends
Long-term care costs have continued to rise steadily each year, with the average cost of a private nursing home room having inflated 3.5% annually, among other increases, according the results of John Hancock Financial’s 2011 cost of care study.
More than 11,000 providers throughout the continuum of long-term care were surveyed for the study, which was conducted by LifePlans Inc. Findings revealed that the national average annual cost of care in the United States is $85,775 for a private room in a nursing home; $75,555 for a semi-private room in a nursing home; and $39,240 for staying in an assisted living facility. The average cost of care received at home was approximately $20 per hour.
To understand how long-term care costs are trending over time, John Hancock calculated a 9-year average based on a comparison of data gathered from providers across the country for John Hancock's 2002, 2005, 2008, and 2011 Cost of Care Surveys. These 9-year average annual increases in the cost of care in various settings closely track with the long-term average annual rate of inflation, which is 4.1% (as measured by the Consumer Price Index for All-Urban Consumers). Specifically:
● The 2011 average cost of a private nursing home room ($235 a day/ $85,775 annually) has risen an average 3.5% per year
● The 2011 average cost of a semi-private nursing home room ($207 a day/ $75,555 annually) has risen an average 3.2% per year
● The 2011 average cost for a month in an assisted living facility ($3,270 a month/ $39,240 annually) has risen an average 3.4% per year