Top 15 Most Expensive States for Long-Term Care: 2014

If you haven’t noticed the rising cost of health care, you must have been living in a cave. The cost of long-term care is no different, and as the nearly 80 million baby boomers age, how to pay for medical care occupies an ever-larger part of their retirement calculations.

Looking at Genworth Financial’s annual study on the cost of LTC provides insights on how much the cost varies from state to state. Since at least 70% of the over-65 population are expected to need LTC at some time in their lives, considering where to retire could play a large part in how affordable that care might be when the time comes.

For the 11th year, Genworth’s Cost of Care Survey, conducted by CareScout, uses data that span more than 14,800 LTC providers from 440 regions across the country, covering all 50 states and Washington, D.C. Also included are potential cost growth rates, as well as a look at how expenses in each category have risen over the past 5 years.

According to Tom McInerney, Genworth president and CEO, most Americans lack sufficient retirement savings to pay for such care, either because of a lack of conventional pension plans or too little socked away in 401(k)s.

(Related: Top 15 Cheapest States for Long-Term Care Costs: 2014)

“For the vast majority of Americans,” said McInerney, “LTC costs are not covered by Medicare and Medicaid provides coverage only after lifelong savings have been nearly exhausted. Given these factors, private LTC insurance remains one of the most effective ways for Americans to prepare for this potentially significant expense later in life.”

The categories included in the Top 15 Most Expensive States for LTC, are adult day care, licensed home care, assisted living and nursing home private rooms.

15. Pennsylvania

Average Annual Cost: $51,949

Adult day care: $15,181

Licensed home care: $45,760

Assisted living: $39,360

Nursing home (private room): $107,493

14. Oregon

Average Annual Cost: $52,873

Adult day care: $18,720

Licensed home care: $48,048

Assisted living: $48,000

Nursing home (private room): $96,725

13. California

Average Annual Cost: $54,798

Adult day care: $19,830

Licensed home care: $50,336

Assisted living: $45,000

Nursing home (private room): $104,025

12. Washington

Average Annual Cost: $55,560

Adult day care: $17,443

Licensed home care: $51,777

Assisted living: $51,000

Nursing home (private room): $102,018

11. Rhode Island

Average Annual Cost: $59,077

Adult day care: $17,160

Licensed home care: $50,908

Assisted living: $58,740

Nursing home (private room): $109,500

10. Maine

Average Annual Cost: $60,281

Adult day care: $26,000

Licensed home care: $48,048

Assisted living: $59,400

Nursing home (private room): $107,675

 

9. Delaware

Average Annual Cost: $60,336

Adult day care: $13,000

Licensed home care: $49,192

Assisted living: $66,000

Nursing home (private room): $113,150

8. New Hampshire