MetLife Survey Shows Long-Term Care Costs Rise Across the Board from 2008 to 2009

The latest research from the Mature Market Institute by MetLife shows that deflationary measures and lower prices did not apply to long-term care service providers during the last 12 months.  According to the 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs, private room nursing home rates rose 3.3% to $219 per day or $79,935 per year, while assisted living also rose 3.3% on average to $3,131 per month. Home health care aides now cost an average of $21 per hour, a 5% increase; adult day services run $67 per day, a 4.7% increase.

For nursing homes, the highest costs for a private room were reported in Alaska ($584/day) while the lowest were in Louisiana, Rest of State ($132/day). Assisted Living costs were highest in Wilmington, Delaware ($5,219/month) and lowest in North Dakota ($2,041/month). The highest Home Health Care Aide rates were $30 per hour in the Rochester, Minnesota area, while the lowest were reported in the Shreveport, Louisiana area at $13 per hour. Adult Day Services were highest in Vermont at $150 per day and lowest in Montgomery, Alabama at $27 per day.


The study, which groups Assisted Living Communities into three categories—“basic” (five or fewer services), “standard” (six to nine services) and “inclusive” (10 or more services)—notes differences from 2008 in the number of communities in each category. More are classified in the middle “standard” range and fewer in the “basic” category. Communities in the “standard” category include more services in their base rates, but, on average, also have higher base rates. The study also found that those who enter an Assisted Living Community with Alzheimer’s disease, or those who develop Alzheimer’s later, can expect to pay more for that care, with an average monthly cost of $4,435.

“These across-the-board increases may be surprising to many given the economy over the past year,” said Sandra Timmermann, Ed.D, director of the MetLife Mature Market Institute. “But, while the Consumer Price Index (CPI) decreased overall during the past year, costs for medical care are 3.3% higher, which parallels our findings on long-term care. The change in pricing methods at some assisted living communities may be another factor, a warning to consumers to carefully compare prices at all long-term care service facilities by considering both the base price and the add-ins for additional services.”

For the full report and chart visit, the 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs