The advancement in medicine and technology has made it possible for people to live longer than their normal life expectancy. Nowadays, people with severe illnesses and disabilities can prolong their lives through modern treatments and medications. This breakthrough significantly improves the lives of many people today, especially those with debilitating ailment and disorder; however, it poses serious downside on long term care. The demand for long term care is growing rapidly each year, but most Americans haven’t planned for it and are unaware that LTC services have almost doubled. Long term care can instantly deplete one’s retirement savings, particularly those living in nursing homes and other facilities.
Genworth Financial, a Fortune 500 Financial company, has been conducting survey on the cost of care in the United States. In 2007, the average annual rate for private nursing homes was $74,806 or equivalent to $205 per day as surveyed among 11,000 nursing homes nationwide. Meanwhile, in 2010, the national median daily rate for a private room in a nursing home amounted to $206, with 5.01 percent increase since 2009. Semi-private room in nursing homes had national median daily rate of $185 with 5.7 percent increase since 2009. Also in the same year, assisted living facilities for single occupancy recorded a median monthly rate of $3,185.The hourly rate for licensed home health aide services accumulated to $19.
There was a huge discrepancy among long term care costs by state. Residents living in the Northeast (England, Maine, New Jersey Pennsylvania, Massachusetts, Vermont, and etc) pay more expensive charges on nursing homes and other facilities than those in the Southeast. Massachusetts had the highest rate for one-bedroom in facilities while North Dakota had the lowest rate in the country. Home care is also expensive and has slight difference in the cost of nursing homes and assisted living facilities.