 |
Long
Term Care Costs
by Marlene S. Stum, Ph.D. University of Minnesota
Myth:
Most people can afford long term care costs without
any additional planning.
- FACT:
Most people greatly underestimate the costs
of long term care. Costs vary significantly
by region as well as by the type and amount
of care needed. One month average cost of skilled
nursing facility care is approximately $5000
or $60,000 per year. The northeast and west
regions tend to have higher costs (Connecticut
is $233/day, Colorado is $133/day, Arkansas
is $70/day). How long could you afford to pay
for care for yourself and/or a spouse/partner?
Myth:
Home care is less expensive than nursing home
care.
- FACT:
Home care may or may not be less expensive than
being in a nursing home depending on the type
and amount of services used as well as the amount
of unpaid family support provided. The average
reimbursement rate for Medicaid home health
care was $71.26 per visit in 1998. The cost
of a registered nurse visit ranged from $26.92
in Indiana to $164.96 in Alaska (Harrington
et al., 1999). The bottom line is that long
term care can be very expensive and have a dramatic
impact on one's financial security.
Myth:
Long term care costs are not likely to increase
in the upcoming years.
- FACT:
Researchers predict that as the baby boom generation
ages the price of long term care will increase
in excess of general inflation. It is projected
that out of pocket expenditures for nursing
home care will increase from an estimated $33
billion in 2000 to $158 billion in 2030 (Mulvey
&
|
