There are some 73 million baby boomers in the U.S., and by the end of the coming decade, all of them will have turned 65, according to the U.S. Census Bureau.
Seven in 10 people 65 and older will need some type of long-term care during their lifetime, and the cost will vary depending on the patient’s required level of care, care setting and geographic location.
A new study by Genworth finds that the cost for facility and in-home care services rose on average from 1.9% to 3.8% per year from 2004 to 2020. That increase amounts to $797 annually for home care and as much as $2,542 annually for a private room in a nursing home.
At the current rate, some care costs are surpassing the 1.8% U.S. inflation rate, Genworth said, citing government reports.
The findings come from 14,326 surveys completed in July and August by long-term care providers at nursing homes, assisted living facilities, adult day health facilities and home care providers. The survey encompassed 435 regions based on the 384 U.S. Metropolitan Statistical Areas as defined by the U.S. Office of Management and Budget.
Genworth found in a follow-up study that these factors are contributing to rate increases for long-term care, particularly amid the COVID-19 pandemic:
- Labor shortages
- Personal protective equipment costs
- Regulatory changes, including updated CDC guidelines
- Employee recruitment and retention challenges
- Wage pressures
- Supply and demand
See the gallery for the 15 most expensive states for long-term care, according to Genworth.
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