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Not a Good Time to be Old

Modesett Williams - Wednesday, April 29, 2015

Last week, Genworth put out a report detailing long-term health care costs in the U.S., and the results are worrisome. In a previous blog post, we discussed how the cost of nursing home care is rising at about 4% per year, and that many insurance companies are exiting the market because it is proving unprofitable (check out the post here: http://www.modwill.com/blog/soaring-long-term-health-costs). In 2015, the private sector's exit of the long-term health care market will leave families responsible for $91, 250 of annual nursing home expenses.

However, it is important to point out that less-intensive forms of long-term care are significantly less expensive than nursing homes. The national average for assisted living facilities is $43, 200, but it is growing at an annual rate of 2%. In addition, the adult day health care programs average at around $17, 904 annually and are growing at about 3%. 

Luckily, the long-term health care annual costs are lower in Austin than the national average. For a private nursing home room, families can expect to pay $84, 133. If a family chooses to pursue an assisted living facility, they can expect roughly $49, 284 in annual expenses, and if they pursue an adult day health care program, they will be responsible for $15, 600 annually. The long-term health care rates are less pricey in Dallas, Houston, San Antonio, Corpus Christi, Waco, and Amarillo, making Austin the most expensive place for nursing homes in Texas.

I'll conclude with one final shocking financial figure: 30 years from today, a private nursing home room is predicted to cost $204, 213 annually. Start saving, folks.

To see nursing home costs by region, visit: https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html

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