That is 70 percent of the senior pool which will need LTC. Unfortunately, the cost of long-term care is rising faster than the rate of inflation, according to the Genworth Cost of Care Survey. Genworth has been studying the cost of long-term care in America for the past 16 years to aid consumers in their insurance purchases. The survey published in surveyed over state counties to document the LTC costs in each county.
The survey reviewed costs for all types of LTC services from at home healthcare, to assisted living communities, to nursing homes. The glaring trend is that LTC costs are spiking, increasing each year. Along with the aging Baby Boomer population, i. The Genworth survey data shows all LTC services percentage increases averages 2.
To put this into perspective, the U. Department of Labor, Bureau of Labor Statistics. The service that increased most sharply was for a private room in a nursing home. The most dramatic cost increase was for assisted living facilities which increased Reasons for the climbing LTC costs are not just due to the higher demand, there are instigating factors pushing the costs higher in order to retain healthcare workers and address regulatory measures on the industry.
More from Personal Finance Scary financial tasks make most people run the other way How parents pay for their kid's college Getting Medicare Part D right: How to pick a prescription drug plan. Skip Navigation. Key Points. While the U. A growing number of older adults need specialized care, and there is a shortage of skilled workers — both of which raise care expenses. This retirement living expense has nowhere to go but up. Here's a breakdown of the costliest places to seek care.
Alaska is home to the most expensive location for care in a nursing home. VIDEO Very high-income, high-net-worth people can plan to self-fund long-term care costs, though I'd advise them to do the math on long-term care cost inflation before getting too comfy with the idea that they'll have enough to do so. Meanwhile, people without significant financial assets will need to rely on Medicaid-provided long-term care.
That's most people: Medicaid and other government programs cover the majority of the long-term care costs in the U. For them, the choices are stark and rather unappealing. They could purchase traditional long-term care insurance and risk premium hikes. Or they could forego insurance altogether, planning to self-fund care or use nonportfolio assets, such as a home sale, to cover any long-term care costs.
0コメント