Costs of Home Care Stays Flat in 2012 says Genworth Study
The cost of receiving home care remained unchanged from 2011 to 2012 and have increased less than other long term care services over the last five years according to Genworth’s latest survey.
Nationwide, the median hourly cost for homemaker services and home health aid services is $18 and $19, respectively. Over the last five years, costs for home aide services have risen 1.1% per year, while assisted living costs have risen 5.7% annual over the same period. The comparable cost for a private nursing home room rose 4.2 percent from 2011 to 2012 to $81,030, or 4.3 percent annualized over the past five years said Genworth.
“Overwhelmingly, Americans prefer to receive long term care in the home and the relatively muted increase in home care costs over the past few years can be viewed as a positive for consumers,” said Steve Zabel, senior vice president of Long Term Care at Genworth. “Consumer demand for home care services has led to a proliferation of home care services providers and more choice for consumers. This competition has kept home care costs relatively stable, especially when compared to the cost of care in a nursing home or assisted living facility.”
Costs of home care has remained flat in part because of increased competition among agencies and the availability of unskilled labor said the report. Data from MedPac’s annual report shows that home health agencies increased to almost 11,654 in 2012, up 20% and set a new record for the number of companies in the business.
In addition, the companies that provide home care services do not incur the costs associated with maintaining stand-alone health care facilities. Genworth’s latest survey covers nearly 15,300 long term care providers, across all 50 states and the District of Columbia, in 437 regions nationwide.
View the study here.
Written by John Yedinak