Elder Care Costs Comparison
Last updated: April 4, 2013
The population of American seniors is expected to double in size
within the next 25 years according to the National Institute on
Aging (NIA) and the U.S. Census Bureau. As our aging population
continues to grow, so does the demand for both in-home care and
residential care facilities. In fact, U.S. News & World Report
recently projected that for the next 20 years, about 10,000 baby
boomers will turn 65 each day. This means that elder care and
retirement planning are crucial to help support an aging
population.
Can We Afford the Cost of Elder Care?
At some point we may need to make decisions for ourselves or our
loved ones when living at home alone is no longer possible and more
care is needed. But can we afford the elder care costs? How much do
the options really cost?
Three options for seniors and their families to consider are:
in-home care agencies, nursing homes,
and assisted
living communities. It makes sense to most people that nursing
homes, with their more intensive levels of care, cost more than
assisted living communities. But many don't realize that the elder
care costs associated with home care can quickly outpace the costs
of assisted living as well. Because home care agencies typically
charge by the hour, it will depend on how much care is needed, but
the expenses can add up quickly for anyone who needs extensive
help.
Comparing Long Term Care Types
The long term care costs cited below are national averages, and
figures do vary by location. In urban areas elder care costs
typically exceed those in non-urban areas across America. The
average cost for a one-bedroom unit in an urban area assisted living
facility is 15.2% more than in non-urban areas and 14% more for
an urban area private nursing home room, according to the 2012
Genworth "Cost of Care" Survey.
|
Care Type
|
In-Home Care
|
Nursing Homes
(semi-private)
|
Nursing Homes (private)
|
Assisted Living
(private)
|
|
Hourly Rate
|
$14-$24/hour
|
N/A
|
N/A
|
N/A
|
|
Daily Rate
|
$112-192/day**
|
$181/day
|
$205/day2
|
$90/day**
|
|
Monthly Rate
|
$3,360-5,760/month***
|
$5,430/month***
|
$6,150/month***
|
$2,714/month2
|
Planning Ahead and Doing Your Research
Seniors and their families often opt for independent caregivers
because of the cost saving. But it's important to factor in the
value an in-home care agency and understand what they have to offer
as screened and bonded trained professionals. Many states require
accreditation and licensing for in-home care agencies, whereas
there are no such standards for independent workers. Doing your
homework is important. Have questions? Our expert Senior Living
Advisors can help you simplify your search.
Related articles:
Source:
2012 Genworth "Cost of Care" Research. The survey included
feedback from more than 25,000 providers in order to complete more
than 9,000 surveys of nursing homes, assisted living facilities,
and home care providers in all 50 states and the District of
Columbia.
* Rates exclude any one-time community or
entrance fees.
** Rates are calculated based on an 8-hour
day.
*** Rates are calculated based on 30
days/month
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