A survey released yesterday by Genworth Financial, Inc. reveals the climbing costs of nursing homes in America. The annual cost for a private room in a long-term facility increased by 17% on average from rates in 2004. According to an Associated Press release, “Nursing home costs this year ranged from $515 per day in Alaska to $125 per day in Louisiana, the study found. The cost for assisted living facilities, meanwhile, averaged $36,090 nationally, up 25 percent from $28,763 in 2004. Costs ranged from $4,921 per month in New Jersey to $1,981 per month in Arkansas, the study said.”
The data was based on a study of 100,000 nursing homes nationwide. Buck Stinson, president of Genworth Financial’s long-term care insurance business, said the results indicate that “the expense of just a few years of long-term care in a facility or at home can very quickly wipe out a lifetime of savings.”
The hike in costs is due to the increasing in demand for nursing homes, as baby boomers age causing an unusual spike in the elderly demographic. Additionally, the low wages and poor benefits associated with nursing home work turn applicants away. Stinson added that 200,000 workers need to be recruited annually to the geriatric field in order to satisfy the rising demand.
Genworth released the data on a state-by-state basis and can be found here.