Long-term care (LTC) cost inflation may be increasing.
Analysis of new price figures from John Hancock Long-Term Care, a unit of Manulife Financial Corp., show that the rates of inflation for both nursing home care and assisted living facility care have been higher in the past two years than the average for the past five years.
The average cost of a private room in a U.S. nursing home has increased to $94,170 per year.
The price of a room has increased an average of 4.8 percent per year since John Hancock last commissioned an LTC price survey in 2011.
Over the past five years, price increases for private rooms have averaged 3.6 percent per year.
The average cost of a semi-private nursing home room has increased an average of 4.7 percent per year over the past two years, to $82,855 per year.
The five-year average annual increase has been 3.6 percent per year.
In the assisted living market, the average cost has increased to $41,124 per year.
The average annual increase has been just 2.4 percent over the past two years, but the five-year average annual increase has been just 2 percent.
Michael Doughty, general manager of John Hancock Insurance, said in a statement that the company hopes the cost data will raise awareness of the need for LTC planning.
“The cost of long-term care continues to be one of the most significant uninsured financial risks that an individual can face,” Doughty said.
John Hancock has used the data to create an interactive cost-of-care map, which it plans to offer through iTunes by the end of August.