Inflation may be under control, but nursing home costs continue to skyrocket. A major insurance company says the average daily cost of a private room in a nursing home in the United States is $70,080 per year, or $192 per day.
The highest rates were reported in the state of Alaska where the cost is $204,765 per year or $561 per day on average. The lowest rates were found in Shreveport, Louisiana at $36,135 per year or $99 per day.
The average length of stay in a nursing home for current residents is 2.4 years, which makes the average cost of a nursing home stay approximately $168,192. The data is contained in the 2004 MetLife Market Survey of Nursing Home and Home Care Costs.
The study also found that the cost of a home health care aide averaged $18 per hour nationally. Home health care is most expensive in Hartford, Connecticut at $28 per hour and least expensive in Shreveport, Louisiana and Jackson, Mississippi where rates are $13 per hour on average.
According to the 2003 MetLife Market Survey of Nursing Home and Home Care Costs the average daily rate for a private room in a nursing home was $181 per day or $66,065 annually. The hourly rate in 2003 for a home health aide was $18.
"The cost of long-term care continues to rise," said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. "Whether one chooses care at home or care in a nursing home, the costs can be exorbitant. As people prepare for their retirement and assess their asset and income requirements, it is also essential that they plan for the possibility that they will need assistance with day-to-day living. Unanticipated long-term care costs can derail an individual's financial plan; long-term care insurance may be a solution," said Timmermann.
People are living longer, but long life may not be accompanied by good health. In 1940, a 65-year-old woman could expect to live an additional 14.7 years; by 2000 a 65-year-old woman could expect to live another 19.5 years, and by 2040 women are expected to live an additional 22 years.
Chances increase that as people age they will develop a chronic condition or physical or cognitive disability for which they will require assistance. For example, almost 38% of people aged 65 and over are diagnosed with a severe disability, and 47% of those aged 85 and older have Alzheimer's Disease or another form of dementia.
Approximately 1.6 million people reside in 18,000 nursing homes in the United States with just under 10% of the residents people aged less than 65 years old and 46.5% aged 85 years and over, according to the National Center for Health Statistics. Most residents (72%) are women and three-quarters require assistance with three or more activities of daily living.
More than 1.3 million patients received home health care services from 7,200 agencies in 2000, with more than half receiving help with at least one activity of daily living. Seven in ten patients were ages 65 and older, and 65% were women, according to the National Center for Health Statistics.
