What Are The Risks?

Pretty Significant Risks

In the broadest sense, the long-term care risks are personal and financial.  What may be the impact on your life and on the lives of your caregivers?

At what costs?

My crystal ball broke a long time ago, but it’s possible to get an idea of what the financial consequences of needing long-term care might be.

Genworth's 2016 Cost of Care Survey reports that:

The national median daily rate for a private room in a nursing home rose 1.24% to $253 in 2016 over 2015 [that’s $7,590 a month].  The 5 year annual growth rate has been 3.51%.  For a semi-private room, the median rate for 2016 was $225 [$6,750 a month], a 1.24% increase over 2015, with a 5 year annual growth of 3.51%.

The national median monthly rate in an assisted living community rose .78% over 2015 to $3,628, with a 5 year annual growth of 2.16%.

The national median daily rate for adult day health care services dropped by -1.25% to $68 compared to 2015, with a 5 year annual growth of 2.53%.

The national median hourly rate for home health aide services ("hands-on" personal care, but not medical care, through a non-Medicare certified, licensed agency) is $20, unchanged over 2015 rounded to the nearest dollar, with a 5 year annual growth of 1.28%.

The national median hourly rate for homemaker services ("hands-off" care such as cooking, cleaning, or running errands) is $20,also undchanged over 2015 rounded to the nearest dollar, with a 5 year annual growth of 2.13%.

https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html

Do the math.  Multiply those costs out to a yearly number and then consider the percentages noted earlier.  The direct financial impact of needing long-term care becomes apparent whether that care is delivered at home, in adult day care, in an assisted living facility, or in a nursing home.

Dollars are often not the only cost.  In many situations the need for long-term care also creates a substantial indirect impact.  Family caregivers re-arrange their personal and work lives to care for a loved one.  Work loss and travel costs are tangible consequences, but consider also the effect of stress on the health of the long-term caregiver.

Check out on the Genworth site what those 2016 costs could be in your state.  For example, the 2016 State median annual cost for an Assisted Living Facility in Florida is $36,540 compared to $43,200 in Ohio or $43,200 in Pennsylvania or $49,632 in New York.

The 2016 State median annual costs for Homemaker Services ("hands-off" care), based on 44 hours per week by 52 weeks, in Florida is $42,324 compared to $44,616 in Ohio or $49,188 in Pennsylvania or $50,340 in New York.