The cost of long-term-care insurance, which continues to escalate, varies dramatically from state to state, according to Lincoln Financial Group’s annual “What Care Costs” study released Thursday.
The state averages for the cost of care in a facility, which include semi-private and private rooms in skilled nursing and assisted living facilities, range from $37,000 to nearly $200,000 per year.
In the cheapest state, Texas, a semi-private room in a skilled nursing facility costs an average of $56,000 a year, while in Alaska, the most expensive state, it costs $167,000. Connecticut (where it’s $155,000) and Massachusetts ($143,000) are the second and third most expensive, while Missouri ($60,000) and Louisiana ($61,000) are the next least expensive.
Forty hours of home health care can vary from $36,000 to $64,000.
“Today, more than one in two Americans turning 65 will need some form of long-term care in their lifetime,” said Andrew Bucklee, senior vice president and head of insurance solutions distribution for Lincoln Financial Distributors.
“Those services are often attached to some significant costs that can impact retirement plans, savings and assets, and, importantly, the level of care one receives. That’s why it’s so important that people speak with their family and their financial advisor about their long-term care preferences and put a plan in place,” he added.
The costs are continuing to escalate, with the average fee nationally for a home health aide now at approximately $23 per hour, up 2 percent from last year. For a semi-private room in a skilled nursing facility, the national average is now $89,305, up from $87,000 last year, while a private room costs approximately $102,900, up from $99,600. A studio apartment in an assisted living facility averages approximately $48,000 a year, a 4 percent increase from last year.
By 2050, a semi-private room in a skilled nursing facility will reach $206,590 and a studio apartment in an assisted living facility will be $106,800, according to the study.