The Cost of Long-Term Care Survey - 2007

This report was constructed by Genworth Financial and is based on information gathered by CareScout in January and February 2007. Telephone interviews were conducted in 90 separate regions across the U.S., with more than 10,000 home health, assisted living, and nursing home providers completing surveys. Home Care Home care providers were classified into two types according to their certification and licensure status. The two provider types are: Medicare certified home care providers: these providers are also licensed. Non-certified but licensed home care providers. Researchers surveyed certified home care providers to determine the hourly private pay rates charged by such providers for the services of a “home health aide.” Researchers surveyed non-certified but licensed home care providers to determine the hourly private pay rates charged by such providers for the services of a “home health aide” and for the services of a “homemaker.”

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Home Health Aide Services

• Certified Home Care Provider Rate. Nationally, the average hourly private pay rate charged by a certified home care
  agency for home health aide services (including rates associated with the delivery of skilled care) is $32.37. This rate represents a 10.6% decline compared with the Genworth 2006 survey results. Viewed historically over three years, the cost of this service has increased yearly as evidenced by a 2.25% compound annual inflation rate from 2005 to 2007.
• Non-certified but Licensed Provider Rate. Nationally, the average hourly private pay rate charged by a non-certified but licensed home care provider for home health aide services is $18.57. This rate represents a 16.2% decline compared with the Genworth 2006 survey results. Viewed historically over four years, the cost of this service has remained relatively flat as evidenced by a 0.3% compound annual inflation rate from 2004 to 2007.

Homemaker Services
Non-certified but Licensed Provider Rate. Nationally, the average hourly private pay rate charged by a non-certified but licensed home care provider for homemaker services is $17.46/hr. This rate represents a 1.5% decline compared with Genworth 2006 survey results. Viewed historically over four years, the cost of this service has remained relatively flat as evidenced by a 1.6% compound annual inflation rate from 2004 to 2007.

Assisted Living Facilities
Assisted living facilities (ALFs) were surveyed to determine the private-pay rates for one-bedroom units. All ALFs surveyed were licensed by the state as assisted living facilities or other comparable residential care facilities.

• Nationally, the average monthly cost for a one-bedroom unit is $2,714.38 (implying a daily rate of $89.24/day), reflecting an average annual cost of $32,572.56. The average monthly cost increased about 1% compared to the 2006 average monthly cost ($2,691.20). These rates exclude any one-time community or entrance fees.
• Viewed historically over four years, the cost of a one-bedroom unit in an assisted living facility has increased steadily year upon year, as evidenced by a 4.2% compound annual inflation rate from 2004 to 2007.
• Boston, Massachusetts ($57,042 excluding community fees) and the non-urban areas of New Jersey ($56,801 excluding community fees) have the highest annual costs for one-bedroom units in ALFs.
• North Dakota and Arkansas have the lowest annual cost for one-bedroom units in ALFs (approximately $20,000 excluding community fees)
• The 2007 Genworth survey shows that, on average, the cost of care for a onebedroom unit in urban areas across America was 14.7% greater than in nonurban areas. The areas with the greatest disparity in ALF rates between urban and non-urban regions are New York, New York (53%), Austin, Texas (43%), and Philadelphia, Pennsylvania (42%).
• 35% of the ALFs surveyed charged a onetime fee, commonly referred to as a community or entrance fee, ranging from $25 to $120,000 with a national average one-time fee of $1,621.08.

Nursing Homes
Medicare certified nursing homes were surveyed to determine private pay rates for private and semi-private rooms.

• Nationally, the average annual cost for a private room (single occupant) is $74,806 ($204.95/day), reflecting a 5.5% increase over the Genworth 2006 survey result ($194.28/day).
• Viewed historically over four years, the cost of a private nursing home room has increased steadily year upon year, as evidenced by a 4.7% compound annual inflation rate from 2004 to 2007.
• Alaska ($196,735), New York City ($135,853), and the non-urban areas of Connecticut ($120,479) have the most expensive annual private room nursing home rates in the country.
• Louisiana and Missouri’s non-urban areas (i.e., excluding St. Louis and Kansas City), had the least expensive annual nursing home rates, costing about $44,000.
• Nationally, the average annual cost for a semi-private (double occupancy) room is $65,985 ($180.78/day), reflecting a 5.5% increase over the 2006 average ($171.32/day).
• Viewed historically over four years, the cost of a semi-private nursing home room has increased steadily year upon year, as evidenced by a 4.6% compound annual inflation rate from 2004 to 2007.
• The 2007 Genworth survey shows that, on average, the cost of care for a private nursing home room in urban areas across America was 13% greater than in nonurban areas. The greatest disparity exists in New York, New York where the cost of care was more than 55% greater than the cost of care in New York’s non-urban
  areas. Nursing home costs in Austin, Texas and San Francisco, California are 48% and 44% greater, respectively, than the cost of care in Texas’ and California’s non-urban regions.

For the complete report, including rate tables by category and state, see Genworth's Cost of Care Survey.