Long-Term Care Overview

The Costs of Long-Term Care?

According to a recent American Council of Life Insurers (ACLI) study the costs of long-term care services will more than quadruple by 2030! Additionally they have listed the current and 2030 projected costs.

  • Adult day care currently costs an average of $50 per day ($12,981 per year) and will increase to $220 per day (or $56,100 per year).

  • Home health aid currently costs $61 per visit ($15,743 per year at five visits per week), and will increase to $260 per visit ($68,000 per year).

  • Assisted Living facilities currently average $25,300 per year and will cost $109,300 per year.

  • Nursing Home care, which now averages $44,100 per year, will cost $190,600 per year.

According to a 6/91 General Accounting Office report, long-term care costs are projected to triple in 20 years based on a 5.8% annual growth rate (the 5.8% growth rate is supported by the Health Care financing Administration's projections 1993-2007).

Average Costs for Daily Nursing Home Care*

Alabama $103 Nebraska $142
Alaska $413 Nevada $130
Arizona $137 New Hampshire $199
Arkansas $118 New Jersey $192
California $156 New Mexico $144
Colorado $117 New York $178
Connecticut $202 North Carolina $126
Delaware $129 North Dakota $100
Florida $120 Ohio $151
Georgia $102 Oklahoma $92
Hawaii $127 Oregon $142
Idaho $136 Pennsylvania $149
Illinois $133 Rhode Island $155
Indiana $141 South Carolina $118
Iowa $101 South Dakota $100
Kansas $110 Tennessee $126
Kentucky $127 Texas $130
Louisiana $90 Utah $115
Maine $175 Vermont $100
Maryland $151 Virginia $115
Massachusetts $201 Washington $177
Michigan $127 Washington, DC $184
Minnesota $133 West Virginia $125
Mississippi $100 Wisconsin $166
Missouri $105 Wyoming $100
Montana $100    

*Kiplinger's Retirement Report, January 1999

  • Within 15 years, it is estimated that the average cost of nursing home care could be as high as $100,000 per year. "Americans Underestimate Cost of Nursing Home Care", Best's Review, February 1997

  • Nursing home care already averages $50,000 per year up from $31,390 in 1990. "LTC Insurance Could Play Role In Solving Medicaid Woes", National Underwriter, Jan 11, 1999

Ancillary Costs

There are a lot of ancillary charges that add up when you need long-term care. Some of the ancillary charges that can add up are medications, diapers, oxygen and laundry.

Human Costs of LTC

While the hardship to an individual receiving long-term care is obvious, the ordeal facing family members, friends and other informal caregivers can also be severe. Indeed, providing care is more often a highly personal responsibility rather than an institutional role. Children can become clinically depressed while taking care of their parents. In the future there will be more frail parents per adult child. Currently, family members provide the majority of care to in-home patients. It is obvious that the human costs of providing long-term care are great and affect many families.

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What Is LTC? | Types of LTC | Who Pays for LTC? | Costs of LTC | Who Needs LTC
The Odds of Needing LTC | How Long Do People Need LTC?