Northwestern Mutual Study Details Long-Term Care Costs
– Northwestern Mutual released its 2010 Cost of Long-Term Care study, which examines costs for home health care providers, assisted living facilities and nursing homes across the country.
This research is important in understanding the accessibility and affordability of different types of services by geographic location, and helps individuals make informed decisions about their long-term care options and costs.
Findings mirrored results from the 2008 study, which revealed that costs vary widely based on type of care and geographic location. For example:
• Assisted living costs in the Chicago area averages $3,266. This compares to North Dakota – the least expensive state in terms of assisted living – with average costs of $2,620/month.
• Nursing home costs in the Chicago area average $270 on average compared to Alaska which is the highest at $576/day and Louisiana as the least expensive at $159/day.
• Residents of the Chicago area on average spend $20 per hour for home health care, whereas Vermont is the state with the highest national average with costs of $32/hour.
The significant implications of these costs for individuals' long-term financial security is further underscored by a separate research study – Financial Matters – in which Northwestern Mutual found that only 17 percent of Americans can provide an estimate of long-term care costs within 20 percent of their state's average.
“People in Chicago are living longer and health care costs continue to rise, making long-term care an increasingly important risk to address, said Scott Evans, Managing Director of The McTigue Financial Group, a Northwestern Mutual office based in Northbrook. “Understanding the reality of long-term care costs is a critical step in developing a sound financial plan that won't be disrupted by a lack of awareness about long-term care risk.”
Resources for Long Term Care Planning
Northwestern Mutual has a range of resources to help individuals think about and plan for long-term care needs:
• Visit the Cost of Care Calculator http://media.nmfn.com/tnetwork/LTC_Calc/index.html to help you better understand the potential cost if you were to require long-term care services.
• Visit the Lifespan Calculator http://www.lifespancalc.com/to estimate out how many years you may live past retirement.
About the research
In June 2010, the Long Term Care Group, Inc. conducted customized Cost of Care research on behalf of Northwestern Long Term Care Insurance Company of nearly 2,000 assisted living facilities, nursing homes and home health care providers in specific regions of the United States.