Skilled nursing facilities saw the lowest cost increase compared to other long-term care facilities in 2021.
The national annual median cost of a semi-private room in a skilled nursing facility rose 1.96% to $94,000, while a private room in a nursing home rose 2.41% to reach $108,405. according to the 2021 Genworth Cost of Care Survey.
from alaska annual cost for private and semi-private skilled nursing rooms was higher than any other state at $378,140 for both room types – the second highest SNF cost in the state was Connecticut at $165,163 for semi-private rooms and $182,044 for private rooms.
Hawaii, Massachusetts and New York round out the top five states with the highest cost for semi-private and private rooms.
Compared to the costs of skilled nursing, the average annual cost of a home health aide increased the most at 12.5% – hands-on personal assistance with activities like bathing, dressing and eating costs 61,776 $ on average, according to the survey.
The biggest increase coincides with a growing demand from an aging society to receive care at home for as long as possible, according to Genworth. All avenues of long-term care have grown between 2% and 6% over the past five years, Genworth said.
“The Cost of Care survey has once again underscored the importance of planning ahead for the costs of long-term care and underscored the need to determine where and how a person wishes to receive care,” said said Brian Haendiges, president and CEO of Genworth US Life Insurance, said in a statement.
Services to Housewives and Assisted Living were somewhere in the middle in terms of cost increases, increasing by 10.64% and 4.65% respectively.
Based in Richmond, Virginia, Genworth Financial Inc. (NYSE: GNW) is a Fortune 500 insurance holding company specializing in long-term care and mortgage insurance. Genworth contacted more than 67,000 long-term care providers across the post-acute care continuum to respond to nearly 15,000 surveys.
Genworth began tracking the cost of long-term care in 2004.
Genworth expects costs to rise in the future given increased system demand — every day through 2030, 10,000 baby boomers will turn 65, the report notes, and seven out of 10 of those people will need long-term care services.
Of the society cost of care calculator shows that the costs of semi-private and private rooms for retirement homes will increase by just under 30% in 10 years, if the annual inflation rate changes by 3%.
Survey results indicate that labor costs will continue to be a significant factor in future cost increases, while costs associated with personal protective equipment (PPE), testing, monitoring of vaccination status and quarantine should decrease.
Genworth’s prediction of COVID-19 protocol costs comes with a caveat – “great variability” in regional markets is likely, depending on state and local regulations, demographics, and changing circumstances. population, Genworth said in its survey results.
“There is fierce competition for a limited number of healthcare professionals, and many are leaving the industry in search of better paying jobs or due to concerns about potential exposure to COVID-19 at work,” said Haendiges in the press release. “The costs of recruiting, retaining and training new healthcare professionals are likely to remain high as we approach 2023.”