If you or a client are a caregiver for someone who really needs long-term care, you know how draining the experience can be, no matter how willing you may be to fill the gap between need and coverage.
According to Genworth's annual study on the cost of LTC, not only are caregivers in for long hours—a third of caregivers say that they provide 30 hours or more per week—and higher expenses, but work can be seriously affected, too. The study says 65% have been subject to lateness or absenteeism, have lost jobs or had to go into another line of work altogether as they struggle to add caregiving to an already full professional life.
The study uses data that span more than 14,800 LTC providers from 440 regions across the country, covering all 50 states and Washington, D.C.
And since more than 70% of people over 65, according to the National Medicare Handbook, will need some kind of LTC at some point—not necessarily admittance to a nursing home, but perhaps residence at an assisted living facility, access to adult day care or the help of a licensed home health care aide—the question of coverage for LTC is something that needs to be addressed before, not when, people need help.
Of course, cost is always a factor in choosing any kind of insurance. Those worried that rates will skyrocket once they've bought a policy, even in the cheapest states, might want to take comfort from Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI). While policies did experience massive rate increases in the recent past, Slome said that that's not as likely to happen for new policies in the future.
"When it comes to long-term care insurance the past does not always predict the future," Slome said. "State regulations and oversight, use of more conservative interest rates based on future years of historic low interest rates and pricing assumptions based more fully on realized experience make me confident circumstances today are dramatically different."
Not only do insurers now realize that those who buy policies are far more likely to keep them than previously thought, he added, projected returns are far more conservative, based on substantially lower interest rates than those used to price earlier policies.
Here are the 15 cheapest states in which to receive some form of LTC. Categories included are adult day care, licensed home care, assisted living and nursing home private rooms.
15. Nebraska
Average Annual Cost: $43,532
Adult day care: $12,927
Licensed home care: $48,048
Assisted living: $39,570
Nursing home (private room): $73,584
14. Iowa
Average Annual Cost: $43,151
Adult day care: $14,300
Licensed home care: $49,764
Assisted living: $41,016
Nursing home (private room): $67,525
13. Utah
Average Annual Cost: $42,468
Adult day care: $12,090
Licensed home care: $48,048
Assisted living: $36,732
Nursing home (private room): $73,000
12. North Carolina
Average Annual Cost: $42,390
Adult day care: $13,260
Licensed home care: $38,896
Assisted living: $35,280
Nursing home (private room): $82,125
11. Kansas
Average Annual Cost: $42,005
Adult day care: $18,200
Licensed home care: $41,184
Assisted living: $44,760
Nursing home (private room): $63,875
10. Tennessee
Average Annual Cost: $41,888
Adult day care: $14,300
Licensed home care: $39,582
Assisted living: $41,580
Nursing home (private room): $72,088
9. Mississippi
Average Annual Cost: $41,077
Adult day care: $16,250
Licensed home care: $36,608
Assisted living: $34,800
Nursing home (private room): $76,650
8. South Carolina
Average Annual Cost: $40,131
Adult day care: $13,000
Licensed home care: $40,040
Assisted living: $34,485
Nursing home (private room): $73,000
7. Texas
Average Annual Cost: $39,531
Adult day care: $8,970
Licensed home care: $41,184
Assisted living: $42,270
Nursing home (private room): $65,700
6. Georgia
Average Annual Cost: $38,702
Adult day care: $15,600
Licensed home care: $39,308
Assisted living: $30,000
Nursing home (private room): $69,898
5. Arkansas
Average Annual Cost: $38,558
Adult day care: $18,720
Licensed home care: $38,896
Assisted living: $34,200
Nursing home (private room): $62,415
4. Missouri
Average Annual Cost: $38,208
Adult day care: $19,500
Licensed home care: $43,472
Assisted living: $30,000
Nursing home (private room): $59,860
3. Oklahoma
Average Annual Cost: $37,813
Adult day care: $15,600
Licensed home care: $41,184
Assisted living: $36,978
Nursing home (private room): $57,488
2. Alabama
Average Annual Cost: $37,344
Adult day care: $6,500
Licensed home care: $36,608
Assisted living: $34,728
Nursing home (private room): $71,540
1. Louisiana
Average Annual Cost: $35,743
Adult day care: $14,300
Licensed home care: $32,032
Assisted living: $37,875
Nursing home (private room): $58,765
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Related ThinkAdvisor stories:
Top 10 Cheapest States for Long-Term Care Costs: 2013
Top 10 Cheapest States for Long-Term Care Costs: 2012
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