Long Term Care Costs in Maryland Increased as Much as 17 Percent Over Past Five Years, According to Annual Genworth Financial Study

The cost of nursing home care in Baltimore, the most expensive city in Maryland for this type of care, has increased 17 percent since 2004, according to an annual Cost of Care Survey released today by Genworth Financial. Elsewhere in Maryland, the cost has increased 12 percent over the past five years. This compares to a 17 percent increase nationwide.

The study, which found that nationwide the cost of long term care in nursing homes, assisted living facilities and in the home increased for the fifth consecutive year, also found that one year in a private nursing home in Baltimore costs $83,804 and $71,273 throughout the rest of the state. By contrast, the national average for a year in a private nursing home is $76,460 more than one and a half times the average annual household income in the U.S. of $48,2011. Most long term care services in this country are rising at a rate faster than inflation, as the cost of providing this type of care continues to rise.

Each year Genworth surveys the cost of care in more than 10,000 nursing homes, assisted living facilities and among home care providers in all 50 states and 90 geographic regions including the District of Columbia. It is the most comprehensive cost analysis in the industry, and the only one that provides comparative data for the past five years. For the first time, this years survey also includes adult day health care costs.

This years Cost of Care Survey is complemented by additional research released today by Genworth entitled A Workforce to Care for Our Aging. This study reveals an imminent shortage of caregivers. The U.S. will need to recruit 200,000 new direct-care workers each year to meet future demand among the 78 million baby boomers as they age. In addition, the care- giver workforce is dwindling and faces issues of retention.

Rising long term care costs are creating significant financial planning challenges for millions of Americans and their families, said Buck Stinson, president of Genworth Financials Long Term Care Insurance business. Genworth Financial continues to conduct research on the cost of long term care so that citizens of Maryland and nationwide understand what to expect in terms of paying for this type of care now and in the future. This information helps consumers and their advisors effectively plan to meet their financial security goals.

Additional findings from the 2008 Cost of Care Survey include:

Assisted Living: A private one-bedroom unit in an assisted living facility in the U.S. has an average annual cost of $36,090. The comparable cost in Baltimore is $34,938 per year and $33,927 elsewhere in the state.

Home Care: Nationally, the average hourly rate for a non-Medicare certified, state licensed home health aide is $19.18, a cost that translates to $43,884 per year for 44 hours per week of care. In Baltimore, the average hourly rate is $19.38, or $44,341 per year for 44 hours per week of care. Elsewhere in Maryland, the average hourly rate is $19.02, or $43,518 per year for 44 hours per week of care.

Adult Day Health Care: First year research findings indicate the average annual cost for five days a week in an adult day health care facility is $15,236 nationally. The comparable cost in Baltimore is $18,078 and $17,685 throughout the rest of the state.

Conducted by CareScout between December 2007 and February 2008, the 2008 Cost of Care Survey provides national, state and local cost information. It is available, along with the research paper A Workforce to Care for Our Aging, at genworth.com/CostofCare.

About Genworth Financial

Genworth Financial, Inc. is a leading public Fortune 500 global financial security company. Genworth has more than $114 billion in assets and employs approximately 7,000 people in 25 countries. Its products and services help meet the investment, protection, retirement and lifestyle needs of over 15 million customers. Genworth operates through three segments: Retirement and Protection, International and U.S. Mortgage Insurance. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit www.genworth.com.

Note to Television Broadcasters: B-roll to support this story can be down linked at the following coordinates/times:

Tuesday, April 29th
2:00-2:15 PM ET
GA 26C/1 DL 3720V
Wednesday, April 30th
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AMC 3, Tr. 8, DL 3860V

1 U.S. Census Bureau, 2006

Contacts:

Media:
Yokima Cureton, 804-662-2598
yokima.cureton@genworth.com
Laurenn Wolpoff, 212-279-3115 x219
lwolpoff@cjpcom.com

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