RICHMOND, Va., April 14, 2014 /PRNewswire/ -- In its 11 th year, the Genworth (NYSE: GNW) 2014 Cost of Care Survey shows the cost to receive long term care services at home in Virginia through a home health aide increased over the past five years. On a national level, the survey shows a dramatic increase in facility based care, such as an assisted living facility or nursing home, while the cost to receive care at home through homemaker services or a home health aide is rising at a moderate growth rate. This is good news for consumers as almost three quarters of people needing long term care prefer receiving it in their homes, according to Genworth's extensive claims data (Long term care claims Experience Data for Genworth Life Insurance Company and affiliates – December 1974-June 30, 2013).
"Over the past 40 years, Genworth has worked hard to educate today's families on the need to plan for the significant financial risk that long term care could impose on them," said Tom McInerney, Genworth president and chief executive officer. "With the number of Americans over 65 projected to double over the next 40 years, continued increases in the cost of care and limited public financing options available to cover these costs, long term care is one of the most important social issues of our time."
The Cost of Long Term CareNationally, the 2014 median hourly cost for the services of a homemaker or home health aide hired from a home care agency is $19 and $19.75 respectively. Homemaker costs nationally have risen annually 1.2 percent on average over the past five years and home health aide services have risen, on average, 1.32 percent annually over the past five years. In Virginia, the median hourly cost of homemaker services is $18 and the median hourly cost of home health aide services is $19. The median hourly cost for homemaker services in Virginia has increased 1.8 percent annually over the past five years, and the hourly cost of home health aide services has increased 1.1 percent over the same period of time. By comparison, the median annual cost for care in an assisted living facility is $42,000 nationally and $47,880 in Virginia. The national yearly cost of assisted living has increased 4.29 percent annually over the past five years and increased 5.2 percent over the same time period in Virginia. The comparable cost for a private nursing home room rose 4.19 percent annualized over the past five years to $87,600 nationally, and increased 3.5 percent over the past five years to $84,315 in Virginia. Bob Bua, Genworth vice president and business leader of its wholly owned subsidiary, CareScout, explains, "Since we first launched this study, we have seen long term care costs march higher year after year. If you live to 65, there is a 70 percent chance you will need some form of long term care services so creating a sound financial plan for managing future long term care costs is very important." Drivers of Rising Long Term Care Costs Long term care costs are being driven up by a combination of economic and market factors. As a result, these associated costs are being passed along to consumers.