The cost of receiving in-home care is less and rising at a more moderate rate of growth than nursing homes, according to the 2014 Genworth Cost of Care Survey. Genworth says this is good news for consumers as nearly 75% of people needing long-term care prefer receiving it in their homes.
In Pennsylvania, the 2014 median annual cost for homemaker services or home health aides is $45,760. These costs have risen annually 1.2% on average over the past five years. However, the cost to receive care in a nursing home is rising at a much faster rate. The comparable cost for a private nursing home room is $107,493 per year, which has increased 4.19% annually over the past five years.
The Genworth study is designed to help families appropriately plan for the potential cost of long-term care in their preferred location and setting. Their research shows that more than 70% of people over 65 will need long-term care services and support at some point in their lifetime.
Based on Genworth claims data, the average length of a long-term care claim is about three years. Assuming three years of in-home care provided by a home health aide, the cost of care would be nearly $136,000. In a private nursing home room, this cost would exceed $260,000. At a 3% inflation rate, in 25 years, when many baby boomers will require long-term care services, costs for an average length of stay in a private nursing home facility will be about $840,000, a huge expense that most Americans cannot afford.
From the Pennsylvania Homecare Association