According to Genworth’s (NYSE: GNW) 2012 Cost of Care Survey, the cost to receive care in the home through home health aide services in Hawaii has risen over the past five years.
“Overwhelmingly, Americans prefer to receive long term care in the home and the relatively muted rise in home care costs nationally over the past few years can be viewed as a positive for consumers in Hawaii,” said Steve Zabel, senior vice president of Long Term Care at Genworth. “Consumer demand for home care services has led to a proliferation of home care services providers and more choice for consumers. This competition has kept home care costs relatively stable, especially when compared to the cost of care in a nursing home or assisted living facility.”
Nationally, the median hourly cost for homemaker services and home health aide services is $18 and $19, respectively. In Hawaii, by comparison, the median cost for homemaker services is $22 per hour and the median cost for home health aide services is $25 per hour. The median hourly cost for homemaker services in Hawaii has increased 2.4 percent annually over the past five years, while the hourly cost of home health aide services has increased 3.5 percent over the same period of time.
By comparison, the median annual cost for care in an assisted living facility is $39,600 nationally. The comparable cost in Hawaii is $45,000. The national yearly cost for assisted living has increased 5.7 percent a year over the past five years, while long term care costs in Hawaii have increased 13.4 percent a year during the same time period. Nationally, the median annual cost for a private nursing home room rose 4.3 percent annually over the past five years to $81,030, while costs in Hawaii increased 4.2 percent a year during the comparable time period to $125,925.
Then and Now: Increased Options Benefit Consumers
Consumers have more long term care options today than ever before as seen by the increasing number of home care agencies. According to the Centers for Medicaid and Medicare, there were approximately 9,200 Medicare-certified home care agencies in the U.S. at the start of 2008. Today, there are slightly over 11,000, representing an increase of 20 percent. Conversely, during this same period of time, the number of Medicare-certified nursing homes has increased less than one half of 1.0 percent from just over 15,000 to 15,100. The number of nursing homes is increasing at a slower rate and no longer represents the only option.
While consumers’ options have increased dramatically, creating a tangible plan for long term care is a critical step many overlook. According to Genworth claims data, the youngest claimant ever was 27 years old. Although that is not the norm, it underscores the necessity for a care planning roadmap. Consumers can create a long term care plan and learn more about the cost of care in their local market and nationally by visiting www.Genworth.com/CostofCare. The site is rich with a range of educational and planning tools to help consumers compare costs across geographies, project future costs and share comparisons and calculations with family, friends or a financial professional.
“Understanding long term care costs in your local market and how these costs tend to change over time is vital to developing a plan to cover expected future costs,” Zabel said. “Genworth’s Cost of Care Survey is the most comprehensive of its kind and provides invaluable information on long term care costs that enable family members to conduct informed discussions with loved ones about future long term needs and preferences in order to be more informed consumers of long term care services.”
Now in its 9th year, Genworth’s Cost of Care Survey provides Americans with both national and local long term care cost data, as well as information on cost inflation over time. The Wheeler Group LLC represents Genworth Financial in Hawaii. We also represent TransAmerica and Mutual of Omaha in the long term care arena here in Hawaii. Depending on your situation, we will provide you with the most cost-effective LTCi available because we will shop around for the best rates to save you money. For more information and to obtain a complimentary LTC analysis and quote, contact Garrett Wheeler @ (808)948-8483, or via email: email@example.com