From the June 2009 issue of Boomer Market Advisor • Subscribe!

Survey tracks best LTC spots

States for nursing home care availability and choice:

  1. Iowa
  2. South Dakota
  3. Kansas
  4. Nebraska
  5. North Dakota
  6. Oklahoma
  7. Missouri
  8. Arkansas
  9. Wyoming
  10. Louisiana

Source: Genworth's 2009 Cost of Care Survey

Baby boomers seeking affordable long term care will need to check out the Midwest. There, they will find more LTC options at the lowest cost, according to Genworth's 2009 Cost of Care Survey.

According to the survey, while nursing home and assisted living costs have risen sharply over the past five years, home care costs have remained relatively flat. Genworth data shows that 74 percent of initial claims are for long term care services received in the home. The hourly private pay rate for a non-Medicare certified, state licensed home health aide is $18.50. Since 2005, the cost for this type of care has increased at an annual rate of 2 percent.

The cost of care in a nursing home or assisted living facility continues to rise at a rate nearly twice that of the median annual inflation rate of 2.3 percent over the same period of time, measured using the Core CPI (which excludes food and fuel) reported by the U.S. Bureau of Labor Statistics. The annual cost for a private nursing home room is $74,208, or $203 per day, representing an increase of 4 percent annually since 2005, Genworth reports. At this rate, the cost is expected to exceed $270,000 per year in 30 years, when the nation's youngest baby boomers will be in their mid-70s.

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