Around two-thirds of Americans over age 65 will need long-term
care, either through at-home health care services in the home or an
assisted living facility or nursing home. Yet more than 90 percent
of those surveyed in the Genworth Financial "2013 Annual Cost of
Care" report haven't talked about critical long-term care issues
with their spouse, partner or adult children.
Genworth Financial asked survey participants how long-term care
issues impact relationships, jobs, stress and anxiety for those in
the circle of care -- care recipient, primary caregiver, secondary
caregiver and families involved.
Having a plan before there is a need is crucial.
"Discussions about long term care issues often lead to patients
experiencing less depression, less pain and less anxiety," says Amy
D'Aprix, an expert in aging and care giving. Care recipients should
talk to their loved ones about what their options are for care, how
it will be financed and what family members might be involved in
care giving. Genworth offers
help starting the conversation
The survey reveals the average cost of various services
(hands-off non-medical care like cooking and running errands):
Home health aides
(hands-on non-medical care like bathing and dressing):
(social, non-medical, community-based setting for some part of
the day): $65/daily
Assisted living facility
(single occupancy, 1 bedroom, hands-on medical care):
(semi-private room, 24-hr care): $207/daily
(private room, 24-hour care) $230/daily
Nursing facility care has increased more than $16,000 a year
since Genworth's 2008 survey. The cost of a private room in a
nursing home has risen 4.45 percent annually, nationwide, since
2008, with this year's median cost at $83,950 per year.
Assisted living facility costs vary dramatically by state. In
Florida, the average annual cost is $36,000, in Texas; $40,035 and
in New York; 47,400.
However, home care rates have remained relatively flat over the
past five years. One reason may be because homemaker and home
health aides are considered unskilled labor and the organizations
that provide these services do not have the expense of maintaining
a stand-alone health care facility.
Find out the
costs of care where you live
How will you pay for long-term care?
is an option for those over ag 65 or disabled. Home health services
may be covered under certain conditions. For care in a nursing
facility, however, only 100 days are covered per benefit period
after a three-day hospital stay, 20 days are covered at 100 percent
and days 21 to 100 require a co-pay.
generally covers those with low incomes and limited resources and
may cover some home services as well as facility care, but Medicaid
limits the amount of assets you may own and the monthly income you
receive before you are eligible for coverage. Eligibility varies by
state and there are restrictions for transferring assets out of
your name to receive benefits.
means you or a family member pay out-of-pocket for care
Long-term care insurance
will pay for a wide variety of home and facility care up to the
policy limitations. Many states participate in the
Long Term Care Insurance Partnership Program
, which allows patients to access Medicaid if they reach their LTC
policy limits, while still retaining more assets than normally
allowed under Medicaid. Generally, those who own a long-term care
insurance policy that meet the partnership requirements may
participate in their state's partnership program.
Fear of Alzheimer's
The Alzheimer's Association reports that the cost of care
related to Alzheimer's, including health care, long-term care and
hospice, will soar to a projected $1.2 trillion per year by 2050,
depleting the financial reserves of many families, along with the
nation's Medicare funds.
In a study conducted by Age Wave on behalf of Genworth, 61
percent of respondents ranked having Alzheimer's disease as their
single greatest fear later in life.
The Alzheimer's Association estimates that approximately 5.2
million Americans of all ages have Alzheimer's disease. This
includes an estimated 5 million people age 65 and older and
approximately 200,000 people under age 65 who have younger-onset
One in nine people age 65 and older and about one-third of
people age 85 and older have Alzheimer's disease. Yet 49 percent of
survey participants had not considered the possibility of needing
Other interesting statistics
- 34 percent are mothers receiving care from adult
- 12 percent are fathers receiving care from adult
- 9 percent are spouses receiving care from a spouse.
- $14,000 paid by care recipient (excluding cost of
- $8,000 paid by family members (excluding cost of
Eighty-eight of survey participants said household income was
reduced 34 percent due to a long-term care event.
How they paid for care
- Dipped into savings/retirement funds.
- Borrowed, took a reverse mortgage or sold home.
- Reduced savings, vacation and family expenses.
The full survey is available as an iPhone app.