Cost of Long Term Care Study 
 

In October and November 2008, the Long Term Care Group, Inc. conducted customized Cost of Care research on behalf of Northwestern Long Term Care Insurance Company of nearly 7,000 home healthcare providers, assisted living facilities and nursing homes in specific regions of the United States.

This research is important in the understanding of accessibility and affordability of different types of care services by geographic location. The findings help consumers make informed decisions about their long-term care options and costs, which may allow them to stay in their homes or within their local communities in the event of functional limitation or cognitive impairment.

Download the Cost of Long-Term Care Nationwide

Download the Cost of Care Study Report

Home Care 
Assisted Living 
Nursing Homes 
 
 
 

Home Health Care

Home health care is a $57.6 billion a year industry in the United States, with approximately 7.6 million individuals receiving care because of acute illness, long-term health conditions, permanent disability or terminal illness, according to the National Association for Home Care and Hospice. Home healthcare organizations include home healthcare agencies, home care aide organizations and hospices.

For the Cost of Long Term Care Study, 2,100 home care organizations were surveyed between October and November 2008. Key findings include:

  • The national average hourly rate for Home Health Aides (HHAs) for all regions in this study is $26 per hour.
     
  • The region with the highest hourly rate for Home Health Aides (HHAs) was tied between Los Angeles-Long Beach California (Los Angeles, Woodland Hills, and Pomona) and San Francisco, California, at $87.50 per hour. The next most expensive region was Orange County, California (Irvine and Brea) at $85 per hour.
     
  • The Region with the lowest average hourly rate for Home Health Aides (HHAs) is Shreveport-Bossier City, LA and costs $13 per hour.

Assisted Living Facilities

Approximately one million Americans make their home in one of approximately 30,000 assisted living facilities in the U.S. today, and this number is projected to grow. The U.S. Census Bureau reports that twenty-six states are projected to double their 65-and-older population between 2000 and 2030. By 2050 there will be an estimated eighty-six million people in the U.S. who are 65 years or older, fueling the demand for assisted living facilities.

Assisted living provides coordinated, personalized 24-hour assistance and support (both scheduled and unscheduled) in a congregate residential setting. The choices, privacy, independence and rights of the persons served are proactively protected and promoted as an essential part of assisted living's core values and mission.

For the Cost of Long Term Care Study, 2,521 assisted living facilities were surveyed between October and November 2008. Key findings include:

  • The U.S. state annual average cost for residing in a private room in an Assisted Living Facility is $41,160. Overall costs may be higher in urban settings or if a resident has a high level of chronicity   which requires additional services.
     
  • Twenty three states have average annual rates for Assisted Living facilities above the national average.
     
  • The NLTC region national average monthly rate for a single occupancy, private unit in an Assisted Living facility is $3,443 in the regions surveyed. By state the national average monthly private unit rate is $3,430.
     
  • The NLTC region with the most expensive average monthly rate for a private, single occupancy unit in an Assisted Living facility is Bridgeport/Stratford, CT and costs $4,896 per month.
     
  • The NLTC region with the lowest average monthly rate for a private, single occupancy unit in an Assisted Living Facility is El Paso, Texas and costs $2,043 per month.

Nursing Homes

The nursing home industry is comprised of establishments primarily engaged in providing inpatient nursing and rehabilitative services. The care is generally provided for an extended period of time to individuals requiring skilled nursing care.

For the Cost of Long Term Care Study, 2,150 nursing homes were surveyed between October and November 2008. Key findings include: 

  • The national average annual cost of a private room in a nursing home based on the NLTC regions in the study is $76,650 per year.
     
  • The national average daily rate for a private room in a nursing home is $210 in the markets surveyed.
     
  • The NLTC region with the most expensive daily rate for a private room in a nursing home is New York, New York (New York City, Rye, Brooklyn, Forest Hills, and Jericho) and costs $590 per day.
     
  • The NLTC region with the least expensive daily average rate for a private room in a nursing home is Lafayette, LA and costs $118 per day.
Studies and Reports