If you haven't noticed the rising cost of health care, you must have been living in a cave. The cost of long-term care is no different, and as the nearly 80 million baby boomers age, how to pay for medical care occupies an ever-larger part of their retirement calculations.
Looking at Genworth Financial's annual study on the cost of LTC provides insights on how much the cost varies from state to state. Since at least 70% of the over-65 population are expected to need LTC at some time in their lives, considering where to retire could play a large part in how affordable that care might be when the time comes.
For the 11th year, Genworth's Cost of Care Survey, conducted by CareScout, uses data that span more than 14,800 LTC providers from 440 regions across the country, covering all 50 states and Washington, D.C. Also included are potential cost growth rates, as well as a look at how expenses in each category have risen over the past 5 years.
According to Tom McInerney, Genworth president and CEO, most Americans lack sufficient retirement savings to pay for such care, either because of a lack of conventional pension plans or too little socked away in 401(k)s.
"For the vast majority of Americans," said McInerney, "LTC costs are not covered by Medicare and Medicaid provides coverage only after lifelong savings have been nearly exhausted. Given these factors, private LTC insurance remains one of the most effective ways for Americans to prepare for this potentially significant expense later in life."
The categories included in the Top 15 Most Expensive States for LTC, are adult day care, licensed home care, assisted living and nursing home private rooms.
15. Pennsylvania
Average Annual Cost: $51,949
Adult day care: $15,181
Licensed home care: $45,760
Assisted living: $39,360
Nursing home (private room): $107,493
14. Oregon
Average Annual Cost: $52,873
Adult day care: $18,720
Licensed home care: $48,048
Assisted living: $48,000
Nursing home (private room): $96,725
13. California
Average Annual Cost: $54,798
Adult day care: $19,830
Licensed home care: $50,336
Assisted living: $45,000
Nursing home (private room): $104,025
12. Washington
Average Annual Cost: $55,560
Adult day care: $17,443
Licensed home care: $51,777
Assisted living: $51,000
Nursing home (private room): $102,018
11. Rhode Island
Average Annual Cost: $59,077
Adult day care: $17,160
Licensed home care: $50,908
Assisted living: $58,740
Nursing home (private room): $109,500
10. Maine
Average Annual Cost: $60,281
Adult day care: $26,000
Licensed home care: $48,048
Assisted living: $59,400
Nursing home (private room): $107,675
9. Delaware
Average Annual Cost: $60,336
Adult day care: $13,000
Licensed home care: $49,192
Assisted living: $66,000
Nursing home (private room): $113,150
