A study by Genworth Financial found that while the cost of in-home care is rising, it’s doing so at a slower pace than care in a nursing home or assisted living facility. This is good news for the 78 percent of respondents in an earlier Genworth survey who said they most preferred receiving care in their own home.
The cost of in-home care has risen at a rate of only 1.7 percent annually over the last five years. The annual cost for care in an assisted living facility has increased 6.7 percent over the same time period, and costs for a private room in a nursing home have risen 4.5 percent.
Nearly three-quarters of Genworth’s initial claim benefits are for home health care. Furthermore, research from the American Association for Long Term Care Insurance, shows that nearly half of benefits dollars paid for new group claimants went to home care, compared with 30 percent for care in a nursing home.
Forty percent of people currently receiving long-term care are under 64, according to the survey. The most expensive states for home care are Alaska, Minnesota and Rhode Island, where the median hourly rate for a home health aide is $25. Alabama and West Virginia are the least expensive states for home care; the median hourly rate is just $15.