Archive for October, 2017

2017 Annual Genworth Cost of LTC Care Survey

October 17, 2017

The Genworth annual cost of long term care services survey went missing in 2016 (it was never released), but now we have the 2017 numbers.  Lots of care cost surveys out there, but this is the best.  Check out the methodology & how many years this survey has been done.  Click Here To See the Actual Survey …shows current cost of care around the U.S.

For Metro-Denver, CO the median (that’s half are more expensive & half are less expensive) cost of a private room in a nursing home has grown to $9,125 per month.  Do you have $9,000 per month to throw at a nursing home?  I don’t either.

The good news is that very few people who have done planning for long term care will need to spend time in a nursing home.  Most don’t need the nursing home level of care.  You see, nursing homes are filled with people who have not planned & thus find themselves depending on Medicaid after their money runs out.

So then why do I spend so much time talking about nursing home costs?  Well to use the Denver-Metro example again, $9,125 per month for a private room would instead provide 14 hours per day, seven days per week, of good, solid home care.  Fourteen hours per day of home care would permit most people needing care to remain where they want to stay…in their own homes!

For those of my readers who do not want to play with the interactive survey (you are missing all the LTC geek fun), let’s look at some of the other 2017 study findings:

Metro-Denver, CO mean (or median) amounts.  Note that I often quote “average” cost, but really intend the “mean”: Home Health Aid (standard home care from an agency), $21.50 per hour.  Adult Day Care, $67 per day.  Assisted Living Facility, $4,500 per month (probably understated as most residents add a la carte items such as medication management). Nursing Home semi-private room, $8,038 per month.  Nursing Home private room, $9,125 per month.

National mean (or median) amounts:  Home Health Aid from an agency, also $21.50 per hour.  Adult day Care, $70 per day.  Assisted Living facility, $3,750 per month.  Nursing Home semi-private room, $ 7,148 per month.  Nursing Home private room, $8,121 per month.

As you can see, Denver has about the same costs as the national “mean/median” (they mean the same thing, pun unintended) for Home Care & Adult Day Care, is about 20% more expensive than national for Assisted Living, & about 12% more expensive for both nursing home private & semi-private rooms.  Want to see the costs for your “neck of the woods”?  Easy.  Just click on the link near the top of this article.

Many of the premiums for long term care insurance (insurance to cover the above costs) are at least partially deductible for purposes of federal & (sometimes) state income tax.  Look for the 2018 deductible amounts to be published in near-future editions of this eNewsletter.

As always, your comments are welcomed.

 

Disclaimer: Ray Smith, The Long Term Care Specialist is neither a CPA nor an attorney.  He therefore does not give tax or legal advice.  Please consult with your accountant or attorney for those matters.

© Raymond Smith, The Long Term Care Specialist, 2017