Plan Beyond Your Choice of Long Term Care Setting
As long term care costs by state increase at a fast rate, it is not advisable to just concentrate on a single form of long term care (LTC) as you might end up with higher out-of-pocket costs should you need two or three types of LTC.
Majority of Americans, perhaps 90%, prefer to receive care at home rather than be placed in a nursing home should the time come that they would require LTC. They actually have three reasons behind this preference.
First and foremost, nobody wants to leave his home as it holds so much cherished memories and leaving his family would make life meaningless. Secondly, at home one can retain his independence even as he acquires assistance with his activities of daily living (ADL) such as eating, bathing, dressing, and the use of the bathroom among others. Third but definitely not least is the smaller cost of in-home care.
At present, a home health aide’s average hourly rate is $19 so if a home care recipient wants eight hours of service that would be tantamount to a daily expense of $152. This is small compared to the national median daily rate of a nursing home’s private room which is $219.
Now if you probe into the cost of care in every state you’ll be surprised that the national average is just a small change. In Massachusetts, for instance, a private nursing home room charges $345 per day on average. Meanwhile, residents of Minnesota who are receiving in-home care, or who have loved ones in this type of LTC setting, are paying out $30 per hour for a home health aide.
Long Term Care Costs by State Rise
In 2050 the total population of the elderly is expected to increase twofold so expect the rates of LTC facilities to shoot up, as well. Prior to this prediction of massive population increase, financial advisors and LTC specialists have initially predicted that LTC costs will increase fourfold.
Based on official statistics, states that are situated up north and those in New England currently have the highest LTC costs. If LTC costs were to multiply by four 18 years from now, nobody will have the financial capacity to pay out-of-pocket anymore, not even for a year.
In Genworth Financial’s 2011 Cost of Care Survey, the annual cost of a nursing home in New York is $119,355 while in Alaska it’s $227,760.
Meanwhile, the rates of home health aides in New Hampshire, Vermont and Rhode Island are moving fast. In New Hampshire it’s $29 per hour, $25 in Vermont, while in Rhode Island people pay $27 per hour. If the cost of in-home care in some states currently appears tolerable, in these three states they are obviously not.
Even Kansas and Missouri, which used to have the lowest LTC costs, have joined in the competition. Recent reports reveal that the rates of in-home care in both states are increasing faster than the national average.
By seriously taking long term care costs by state to heart you will realize that relocating after retirement is pointless. In fact, moving to another state will just be additional expense on your part. Instead of moving, invest your money in a good LTC plan which will allow you to put away your assets for more important things such as your family’s future. Get long term care quotes today.
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