ID Trends Summer 2022 - Page 20

20 ID Trends NAILBA
LTC at Home Trends

Trending costs of home LTC

Financial professionals may try to engage clients in a discussion of long-term care ( LTC ) by showing the cost of care . In many cases , this information is met with an indifferent shrug because most people think their families will provide free care for them at home . They could be in for an unwelcome surprise . Care at home is now trending as the most expensive option .
Reality of home care
Dr . Robert Pokorski is a consultant and public speaker with expertise in longevity , long-term care , and the decline of cognitive and financial ability at older ages . He specializes in educational meetings for financial professionals and consumers . Dr . Bob @ RobertPokorski . com , 828-767-0523
1 Genworth Cost of Care Survey 2022 . Genworth Financial , Inc . February 16 , 2022 .
When a loved one first needs LTC , families spring into action . Everyone helps out for a few days or weeks , but then reality sets in : care will likely be needed for years , not for days , weeks , or months . Free care at home ? That might be the ideal , but it ’ s often not feasible .
Spousal caregivers , who are usually in their late 70s and older , are often physically unable to provide all the care , plus a spouse may be unavailable – some people never marry , and older couples are often widowed , divorced , or separated late in life . Adult children do what they can , but many need to return to work and care for their own families . Paid caregivers are soon hired to supplement family care , starting with a few hours a day and increasing thereafter as more care is needed .
The chart shows three ways to express LTC cost based on national averages . 1
1 . Annual cost as usually reported . The range is $ 54,000 for assisted living to $ 108,405 for a private room in a nursing home . Note that the cost for homemaker services (“ hands-off ” care , such as cooking , cleaning , and running errands ), and home health aides (“ hands-on ” personal care , such as bathing , dressing , and eating , but not medical care ) is based on 44 hours per week for 52 weeks , which averages 6.3 hours per day for a seven-day week . 2 . Annual cost based on hours of care . Here ’ s where the high cost of paid home care becomes apparent . The cost of assisted living and nursing home care is based on care for 24 hours per day , seven days per week . But home care is variable , ranging in this example from 6.3 to 24 hours per day , seven days per week . Once home care reaches 12 hours per day , it is more expensive than care in a nursing home . Full-time home care ( 24 hours per day ) costs more than twice as much as care in a nursing home .
3 . Cost for one hour of care . Cost ranges from a low of $ 6 per hour for assisted living , to $ 11 ( shared room ) or $ 12 ( private room ) per hour for a nursing home , to highs of $ 26 and $ 27 per hour for homemaker services and home health aides , respectively . When considered from this perspective , paid home care is by far the most expensive alternative .