Planning for Costs of Long-Term Care

Northwestern Mutual, a company that sells long-term-care, released a study on the cost of long-term-care. The main purpose of the survey is to urge people to plan for these future costs because “[t]here is a 66% chance that someone over the age of 65 will require long-term care in [your life].”

The current costs break down as follows:

1. The average rate for home health care help ranges from $20 to $23 hourly. Sioux Falls, South Dakota had the highest hourly rate at $33/hour and New Orleans had the lowest hourly rate at $13/hour.

2. Private rooms at assisted living facilities cost $3,372/month on average and it is $2,592/month on average for a shared room. Betheseda, Maryland has the most expensive rate for a private unit at $6,618/month and Milwaukee has the cheapest rate at $1,263/month.

3. At nursing homes, the average rate for a private room is $246/day or $89,812/year. Anchorage, Alaska has the most expensive daily rate for a private room at $525/day and Corpus Christi, Texas has the lowest rate at $133/day.

Anne Tergesen, The High Cost of Long-Term Care, Smart Money, Jan. 17, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing  (PLM, Inc.)) for bringing this article to my attention.