The John Hancock Life Insurance Company announces the results of its biennial long term care cost study. The study found that long term care costs have continued to increase for all provider options throughout the country. The study, conducted by LifePlans Inc, surveyed 16,000 long term care providers, including assisted living facilities, nursing homes, and home health care agencies. They surveyed them in key cities throughout the country. The findings revealed that the average annual cost of care in the United States is $94,000 for a private room in a nursing home. A semi private room in a nursing home is around $82,000. Assisted living facilities cost $41,000 while adult day care cost $18,000. The average annual cost for care provided at home was $29,000.
In order to understand how long term care costs are trending over time, John Hancock calculated a five year averaged based on a subset of common providers from the 2008 and 2011 Cost of Care Surveys and the 2011 and 2013 Cost of Care Surveys. "The cost of long-term care continues to be one of the most significant uninsured financial risks that an individual can face," said Michael Doughty, Executive Vice President & General Manager, John Hancock Insurance. "John Hancock hopes that our cost of care studies will raise consumer awareness and will help them understand how important planning ahead for a potential long-term care event can be to their future."
As more people become aware of the costs associated with long term care, they have to start considering a way to be able to cover those costs, especially as they age. Although long term care is not something that is only privy to the elderly, they are the demographic that the care is most commonly used to help. The reality is that most people are not going to be able to afford the costs listed above on their own. They have to be able to find some kind of coverage that will be able to provide the alternative to covering their needs. The main choice that many people take is to invest in long term care insurance, which will provide coverage as long as policyholders are keeping up with paying for their premiums.
Of course, there are many who have argued that the prices for long term care insurance are too costly and that it’s making it too difficult for many men and women to be able to afford the coverage that they need. Experts suggest that if individuals are having problems with making their payments, they need to get in contact with their insurance company and express their concerns. Many times, the policy can be changed to make it a little more affordable for those who are seeking coverage. Alternatively, individuals might even want to consider checking out some of the different rates that may be available with other companies. Being able to save even a thousand or a few hundred dollars can be the deciding factor in whether or not coverage is affordable in a senior budget.