Slightly more than half (63 percent) of respondents toPrudential’s latest long-term care survey say they’re confidentabout their ability to pay for long term care.

|

“There’s no question that as Baby Boomers age and approachretirement, one critical component to their financial plan –sometimes overlooked with dire consequences – is how to protectretirement savings, income, choice, and independence from theimpact of a long-term illness or disability,” says Malcolm Cheung,vice president, Prudential Long-Term Care Insurance.

|

Prudential’s study points to a disturbing lack of knowledgeregarding the cost and funding sources for long-term care services.On average, respondents estimated the average daily rate for asemi-private room in a nursing home at $450 – more than double theactual average of $215. And, more than one-third believe that acombination of private health insurance, Medicare, and Medicaidwill cover any future extended care costs, while in reality,consumers can expect minimal coverage from all but Medicaid.

|

The cost of insuranceto cover long-term care needs is equally misunderstood. While thecost of an individual policy varies significantly by age at time ofpurchase, 60 percent of those surveyed well overestimated theannual cost, even for the oldest of individuals. The remaining 40percent were so unsure they couldn’t venture a guess.

|

According to Genworth's 2010 Cost of Care Survey, private carerooms with 24-hour assistance can be costly ($206 median daily),and at a successive rate of 5.1% per year, retirees can almostcount on the cost to double in 20 years. In which case, they mightwant to move to a state like Louisiana, which posted the lowestannual median rate for a private room in a nursing home in2010.

|

And the cost goes up from there.

|

Slideshow: Here are 5 states with the lowest costs for privateroom nursing care>

1. LouisianaLouisiana long term care

  • *Nursing Home Median Annual Rate (Private Room): $51,056
  • Nursing Home Median Annual Rate (Semi-private Room):$47,556
  • Adult Day Health Care Median Annual Rate: $14,820
  • Home Health Aide Services Median Annual Rate: $35,464

Next: Missouri

2. MissouriMissouri long term care

  • *Nursing Home Median Annual Rate (Private Room): $51,191
  • Nursing Home Median Annual Rate (Semi-private Room):$47,815
  • Adult Day Health Care Median Annual Rate: $18,252
  • Home Health Aide Services Median Annual Rate: $41,184

Next: Oklahoma

3. Oklahoma

Oklahoma long term care
  • *Nursing Home Median Annual Rate (Private Room): $52,104
  • Nursing Home Median Annual Rate (Semi-private Room):$47,450
  • Adult Day Health Care Median Annual Rate: $11,700
  • Home Health Aide Services Median Annual Rate: $41,710

Next: Iowa

4. Iowa

Iowa long term care
  • *Nursing Home Median Annual Rate (Private Room): $56,393
  • Nursing Home Median Annual Rate (Semi-private Room):$52,195
  • Adult Day Health Care Median Annual Rate: $13,169
  • Home Health Aide Services Median Annual Rate: $46,858

Next: Arkansas

5. Arkansas

Arkansas long term care
  • *Nursing Home Median Annual Rate (Private Room): $56,575 tiedwith Kansas
  • Nursing Home Median Annual Rate (Semi-private Room):$50,735
  • Adult Day Health Care Median Annual Rate: $16,640
  • Home Health Aide Services Median Annual Rate: $37,752

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.