LTC costs rising, but at slower clip than pre-crisis

The costs of long-term-care continue to rise, although at a slower pace than before the economic slowdown as nursing homes and home health care providers reduce charges. Between 2008 and 2010, the cost of daily care in a nursing home with a private room rose 14% to an average daily rate of $247. Costs for a semi-private room in a nursing home jumped 11% to an average of $215 per day. And home health care expenses increased 13% to $190 a day, according to a report from Prudential Financial Inc. Between 2004 and 2006 the cost of daily care in a nursing home with a private room climbed 21% to an average daily rate of $203. Costs also ballooned for a semi-private room in a nursing home, rising 23% to an average of $180 per day. And home health care expenses rose 11% to $160, according to a report by Prudential Financial Inc. From 2006 to 2008, the cost of a private room in a nursing home rose 7% to an average of $217 per day, while those for a semi-private room increased 8% to $194, and home health care increased 5% to $168. Long-term care costs grew at a compound annual growth rate average of 6% between 2004 and 2010, while the consumer price index — the key inflation indicator — rose at a rate of 2.5% during the comparable period. Alaska came in first place as being the most expensive state for home health care, costing an average of $32 an hour. Wyoming and Connecticut followed in second and third places, respectively, with average hourly costs of $31 and $27. Texas was the cheapest state for home health care at an average of $12 an hour. Alaska also came in first as the most expensive state for nursing homes. A private room in a nursing home in Alaska cost an average of $232,100 per year. Connecticut and New York followed in second and third, running an average of $143,800 and $138,300 per year, respectively. Still, while the cost of long-term-care continues to increase, an online Prudential poll of 1,000 consumers 35 to 65 revealed that few participants felt they really understood of long-term-care coverage. Only 35% of the polled consumers felt they either “know a lot or know a moderate amount” about long-term-care insurance.