Not all things during the economic downturn have been bad and one of the bright spots has been that the recession of 2008-2009 (if you believe that it ended) has lead to smaller cost increases at many long-term care facilities according to a new study by Prudential Financial Inc. The bi-annual report, 2010 Long-Term Care Cost Study, measures trends in costs associated with the major forms of long-term care services. According to the report, increases during the past six years showed an average six percent annual compound growth rate.
"Consumer misperceptions continue to exist about long-term care services and coverage options," said Malcolm Cheung, vice president, Prudential Long-term Care Insurance. "Of those surveyed 25 percent said they had no idea what a day in a nursing home costs and more than a third continue to believe private health insurance and Medicare will cover their future extended care costs."
The study found that home health care costs grew by 13 percent since 2008 largely due to a 17 percent increase in costs to $54 per hour for Licensed Practical Nurses, which represents only about one-quarter of home service usage. The national average cost for a Home Health Aide or Certified Nursing Assistant remained flat at $21 per hour. Assisted living facilities saw the smallest increase with the average annual cost for a room rising only 2 percent in the last 2 years, compared to a 13 percent increase in the prior two-year period. The average daily cost for a private nursing home room in 2010 is $247, or $90,155 annually, a 14 percent increase since 2008.
Visit the full Prudential Long Term Care Cost study.