On April 9, a financial group issued a report which indicates that the average costs for nursing home care is going up. According to Genworth Financial’s annual “Cost of Care” report, Americans will now spend $91, 250 per year on average for a private room in a nursing home. That figure also represents an upward trend in the general costs for long-term care in the U.S. Genworth says that in the last five years long-term care costs has increased annually by 4 percent. To put that rate of cost growth into perspective consider last year’s median annual bill which was $87, 600.
According to a spokesperson with the National Council on Aging, the expenses related to providing for the care of close relatives sometimes comes as a shock to many people. Family members are often simply unprepared to deal with the expensive nature of long-term care until one of their parents or some other family member requires it.
The Genworth study was comprehensive in its approach and made use of its unique position within the industry to compile its findings. Genworth is also a company that provides customers with policies intended to help them cover long-term care. The report researched costs related to adult day care as well as the costs of home health aides.
The findings on the costs of nursing home care are truly stunning. The Genworth report says that it would now cost a person the same amount for a one year stay in a nursing home as it would to pay three years of tuition for a student attending a private college. In fact, it is now estimated that the rate of growth in the long-term nursing home care industry has moved at a pace which is twice that of U.S. inflation over the past five years.
If you are a New York resident who is concerned about rising nursing home costs you should know there are steps that you can take now to prepare for these changes. A consultation with your New York estate planning attorney can help you create a strategy to manage your long-term needs. Your attorney can help you put your affairs in order for your future needs whether you need to reallocate assets from a family trust, or simply draft a will.
Source: U.S. News & World Report, “Nursing Care Costs Top $91,000, Study Says,” Matthew Craft, Associated Press, April. 09, 2015