LTCG has released its latest cost of care survey data through its What Care Costs interactive website and detailed study. These tools are the most comprehensive resources for cost data in the long term care (LTC) insurance industry, based on over 50,000 data points collected from more than 15,000 providers, and analyzed by LTCG's in-house actuarial team.
The newly-published 2019 data shows that costs have continued to rise for all categories of LTC settings. The five-year compound annual growth rate in cost is between 2- 3 percent for skilled nursing facilities, assisted living and home health aides. Meanwhile, the cost of registered nurse (RN) and licensed practical nurse (LPN) services within a home care setting have been more stable over the past three years.
The study also demonstrates that the average cost of skilled nursing facilities (SNF) grew at the fastest rate over the prior year. Compared to last year, private and semi-private rooms at SNFs rose 4.8 percent and 4.6 percent, respectively, to $303 and $266 per day. That is nearly double their five-year trend of 2.6 percent and 2.7 percent, respectively. The cost of home health aide services rose less sharply, growing by approximately 1 percent to nearly $25 per hour since last year, versus a five-year compound annual growth rate of 2.5 percent. The cost of a studio room in an assisted living community grew to $4,241 per month, representing a 2.6 percent year-over- year increase, consistent with the five-year growth trend of 2.5 percent.
The study also found the two most expensive states for nursing home care are Connecticut and Massachusetts, which was consistent with the 2018 cost of care study. New Jersey and Delaware topped the list for assisted living costs. The least expensive states for both care options included mostly midwestern and southern states like Louisiana, Missouri, South Dakota and others.
LTCG's study, interactive website and data file are available on a private-labeled basis for use by long term care insurance carriers or financial institutions looking to educate various stakeholders including the customers, agents, and internal staff of these organizations. The What Care Costs website offers easily searchable, compelling data visualization tools, including the average costs at a national and regional level for a variety of LTC services. These services include non-skilled home care, skilled home health care...