Long-term care costs rise 3.3 percent in 2009

Despite the economy and subsequent fall in market prices, the cost of long-term care has gone up, according to the 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services and Home Care Costs.

According to the survey, private-room nursing home rates rose 3.3 percent to $219 per day or $79,935 per year, while assisted living also rose 3.3 percent on average to $3,131 per month. Home healthcare aides now cost an average of $21 per hour, a 5 percent increase, and adult day services run $67 per day, a 4.7 percent increase.

Findings of the study include:

• For nursing homes, the highest cost for a private room was reported in Alaska ($584/day) while the lowest was in Louisiana ($132/day).
• Assisted living costs were highest in Wilmington, Del. ($5,219/month) and lowest in North Dakota ($2,041/month).
• The highest home healthcare aide rate was $30 per hour in the Rochester, Minn. area, while the lowest was reported in the Shreveport, La. area at $13 per hour.
• Adult day services were highest in Vermont at $150 per day and lowest in Montgomery, Ala. at $27 per day.

The survey groups assisted living communities into three categories – basic (five or fewer services), standard (six to nine services) and inclusive (10 or more services) – and notes differences from 2008 in the number of communities in each category. More are classified in the standard range and fewer in the basic category.

The study also found that those with Alzheimer's disease, or those who later develop Alzheimer's, can expect to pay more for assisted living services, with an average monthly cost of $4,435.

"These across-the-board increases may be surprising to many given the economy over the past year," said Sandra Timmermann, director of the MetLife Mature Market Institute. "But while the Consumer Price Index decreased overall during the past year, costs for medical care are 3.3 percent higher, which parallels our findings on long-term care.”

The change in pricing methods at some assisted living communities may be another factor, she said. She warned  consumers to carefully compare prices at all long-term care service facilities by considering both the base price and add-ons for additional services.

Additional findings of the survey include:

• About three-quarters of the home healthcare agencies surveyed provide Alzheimer's training to their employees.
• Almost all (98 percent) of the agencies surveyed do not charge an additional fee for patients with Alzheimer's. 
• About one-quarter (27 percent) of the home healthcare agencies surveyed have a 24-hour or live-in rate. 
• The average capacity at adult day service centers is 44 and the average client-to-staff ratio is 6:1, with a maximum of 20:1.