RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial Group’s (NYSE:LNC) annual What Care Costs study finds that national averages for long-term care expenses range from $47,840 for a full-time home health aide to $102,911 for a private room in a nursing home, which can differ significantly by state. The study findings, including state-by-state details, are available to consumers and advisors through an interactive website, www.whatcarecosts.com/Lincoln.
“Today, more than one in two Americans turning 65 will need some form of long-term care in their lifetime and the total number needing care is expected to more than double by 20501,2,” said Andrew Bucklee, senior vice president and head of insurance solutions distribution for Lincoln Financial Distributors. “Those services are often attached to some significant costs that can impact retirement plans, savings and assets, and, importantly, the level of care one receives. That’s why it’s so important that people speak with their family and their financial advisor about their long-term care preferences and put a plan in place. Lincoln’s What Care Costs website can be a great starting point for these conversations and provide some clarity around the potential costs associated with long-term care.”
The cost of long-term care services can vary greatly depending on of the type of care needed and where a person lives. The state averages for the cost of care in a facility, which include semi-private and private rooms in skilled nursing and assisted living facilities, range from $37,000 to nearly $200,000 per year. An individual needing 40 hours of home health care per week today can expect to pay from $36,000 to $64,000 this year.
The total lifetime cost of care can also vary greatly due to the length of need and the availability of care provided by family members and friends. Based on current projections, those age 65 who will be in need of long-term care services in the future will require an average of 3.9 years of support. Of those who develop a disability, 27 percent are expected to require five years or more of care services1.
For care beginning in the home, the average national fee for a home health aide today is approximately $23 per hour, up 2 percent from the prior year. For instances requiring the medical skills of a registered nurse, the national average for a home visit is $139.
| Most and Least Expensive States for a Home Health Aide (hourly) | |||||||||||||||||||||
| Most Expensive | Least Expensive | ||||||||||||||||||||
| Minnesota: $31 | Alabama: $17 | ||||||||||||||||||||
| North Dakota: $29 | Louisiana: $19 | ||||||||||||||||||||
| Alaska: $28 | West Virginia $19 | ||||||||||||||||||||
For those who received care in a skilled nursing facility, the national average for a semi-private room is $89,305 annually, up from $87,000 last year, while a private room costs approximately $102,900, up from $99,600. A studio apartment in an assisted living facility averages approximately $4,000 per month, a four percent increase from last year.
| Most and Least Expensive States for a Semi-Private Skilled Nursing Home (annually) | |||||||||||||||||||||
| Most Expensive | Least Expensive | ||||||||||||||||||||
| Alaska: $167,535 | Texas: $56,210 | ||||||||||||||||||||
| Connecticut: $155,490 | Missouri $59,860 | ||||||||||||||||||||
| Massachusetts: $143,080 | Louisiana: $60,955 | ||||||||||||||||||||
| Most and Least Expensive States for a Studio Apartment in an Assisted Living Facility (annually) | |||||||||||||||||||||
| Most Expensive | Least Expensive | ||||||||||||||||||||
| Massachusetts: $68,088 | Louisiana: $36,612 | ||||||||||||||||||||
| Alaska: $67,608 | Mississippi $37,836 | ||||||||||||||||||||
| New Jersey: $67,248 | Alabama: $39,096 | ||||||||||||||||||||
By 2050 when the population of individuals 65+ years of age will have doubled and long-term care services are in even greater demand, Lincoln’s What Care Cost website projects these expenses to be significantly higher due to inflation. Home Health Aide national averages are expected to reach $48 by then and registered nurse visits are projected to reach $413. A semi-private room in a skilled nursing facility will reach $206,590 and a studio apartment in an assisted living facility will be $106,800.
To help financial advisors and their clients plan the financing of their potential long-term care expenses, Lincoln Financial provides whatcarecosts.com as a searchable database of long-term-care cost information including in-home, skilled nursing facilities, and assisted living for states and metropolitan areas nationwide. The data can be sorted by type of care and geography. In addition, the impact of inflation on these costs may be modeled.
For more information visit www.whatcarecosts.com/Lincoln. In the upper right corner, enter the code ‘Lincoln’
About the What Care Costs Study
What Care Costs survey was designed and implemented by LTCG, the nation’s leader in long-term care administration services. Each year LTCG surveys thousands of Skilled Nursing Home, Home Health Care and Assisted Living Facility providers to collect cost of care data. The cost of care averages are calculated from over 30,000 different providers at the national, state and MSA (metropolitan statistical area) level.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $229 billion in assets under management as of December 31, 2016. Learn more at: www.LincolnFinancial.com. Find us on Facebook, Twitter, LinkedIn and YouTube. To sign up for email alerts, please visit our Newsroom at http://newsroom.lfg.com.
1. Department of Health and Human Services, Long-Term Services and Supports for Older Americans: Risk and Financing, February 2016
2. Bipartisan Policy Center, America’s Long-Term Care Crisis: Challenges in Financing and Delivery, April 2014
