The average annual cost of care for a private room in a nursing home increased to $85,775 per year, up 3.5% from the previous year according to a study from John Hancock Financial.
Its findings revealed that the national average annual cost of care in the US is $75,555 for a semi-private room in a nursing home; and $39,240 for an assisted living facility. The average cost of care received at home was approximately $20 per hour.
“The ongoing effect of the recession on the nest eggs of so many individuals underscores the importance of planning for the future,” said Marianne Harrison, President of John Hancock LTC. “John Hancock believes that long-term care insurance is an integral component of any prudent financial plan. Our cost of care studies are intended to help people better understand and prepare for their future long-term care needs.”
The study surveyed more than 11,000 providers, including nursing homes, assisted living facilities, and home health care agencies, in key cities across the country.
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 the long-term average annual rate of inflation, which is 4.1%.