The annual median cost of care for a private room in a nursing home reached $ 100,375, marking the largest increase in any long-term care facility in the past five years.
It is according to the 15th Genworth Cost of Care Survey, who contacted more than 49,000 long-term care providers across the United States to complete 15,000 surveys for a range of parameters.
The increase in costs at the nursing facility level was over 3%, based on the five-year compound average growth rate (CAGR). For a private nursing home room, the five-year CAGR was 3.64%, while for a semi-private room, the figure was 3.44%.
âThe year-over-year cost of any type of long-term care is increasing rapidly, with no signs of slowing down,â said Gordon Saunders, senior director of brand marketing at Genworth Financial, in a statement announcing the ‘investigation. âMore and more, people and their loved ones find that the cost of long-term care services is outrageous and often they don’t know it in advance. “
The mixed annual median cost of long-term care support services increased an average of 3% from 2017 to 2018, and some categories of care exceeded the US inflation rate of 2.1% by two or three times, according to the press release. Assisted living facilities increased the most in terms of cost between 2017 and 2018, with an increase of 6.67%. The increase in the cost of a room in a semi-private nursing home came second for this period, at 4.11%.
According to Genworth, a provider of long-term care and life insurance products based in Richmond, Virginia, several factors are driving up the cost of care. Several relate to the workforce, with a shortage of skilled workers, higher minimum wages and changes in overtime pay rules, as well as the difficulty in attracting and retaining skilled workers.
âAs labor and facility costs rise, it becomes much more difficult to find affordable care options for caregivers and families nationwide,â said Jennifer Johnson, clinical director of CareScout, which is leading the cost of care survey, in the release.
The difficulties have led companies to take unusual steps to try to help their workers; Starbucks (Nasdaq: SBUX), for example, recently launched a benefit that subsidizes senior care services for employees with caregiving responsibilities.
Written by Maggie Flynn