Most Americans underestimate the cost of long-term health care even as the costs continue to climb, according to the Genworth 2016 Cost of Care Study released Tuesday.
Four out of five adults underestimate the costs of home healthcare, according to the Genworth online caregiving survey that included 1,226 respondents.
Thirty percent of those who underestimate the cost believe it is under $417 per month, when in reality the national median rate for an in-home aide is about $3,800 per month. Another 28 percent think the cost ranges from $417 to $1,666 a month and 23 percent think it is $1,666 to $3,333 a month.
Nationally, the median cost of care rose across all care settings, except adult day care, which decreased slightly, according to Genworth. The monthly cost of a private nursing home room is $7,698, up 1.24 percent from 2015. The cost of a semi-private room is up 2.27 percent to $6,844 per month. Assisted living communities saw a slight increase, up 0.8 percent to $3,628 per month.
“Although the high cost of long-term care in America is considered the new normal, it does not change the reality of what is certainly one of the biggest societal issues of our time—that at least 70 percent of Americans over age 65 will need some form of long-term care services and support during their lives,” says Tom McInerney, president and chief executive officer at Genworth. “The data from our study dramatically demonstrates the huge disparity between what consumers think costs are and what they actually are."