One of the best and most awaited tools in the long-term care insurance industry is the Genworth Financial annual cost of care survey.
It offers costs of care venues in a user friendly interactive format and enables financial advisors, insurance producers and consumers to understand the median cost of care venues in 435 regions in the country.
Beyond that it allows users to project the cost of care venues between ages 80 and 85 when we see most policyholders file claims.
These cost projections can help determine potential long-term care expenses and funding strategies.
Genworth’s cost of care website is an extremely helpful tool for financial planners to determine who can self-fund and who really needs to transfer some or all of the risk of long-term care expense to an insurance company.
Annual costs increased from 2019 to 2020
The national median cost of care increased across all care venues. Growing in popularity, the most noticeable was for assisted living communities which increased 6.15%.
Home health care services increased 4.35% to $24 per hour.
A private room in a nursing home increased by 3.57% to $290 per day.
For the most part cost increases are tied to labor costs caused by a shortage of caregivers, increases in minimum wages in some states and overtime requirements on the part of some venue providers.
Future cost projections based on 3% annual increases
Future cost increases are calculated on a 3% annual increase in care venues.
Keep in mind this is well before baby boomers are approaching age 80 and impacting the supply of caregivers and driving up long-term care costs.
Check out Genworth’s 2020 Cost of Care Survey. It’s insightful and user friendly.