The insurance policy management company illumifin has released its 10th annual cost of care study, which saw the cost of home care increase more than other industries.
illumifin’s study, which “gathers tens of thousands of data points from care providers nationwide,” found that the cost of a home care aide rose by more than 5% – on average – in 2023.
“We are proud to leverage our 30 years of experience in senior care to provide actionable data for insurers, consumers, providers and financial institutions,” illumifin President and CEO Peter Goldstein said in a statement. “Our focus remains on customer centric initiatives which assist in managing risk and planning for the future. Our Cost of Care survey has proven valuable to not only to our business partners but providing valuable knowledge to consumers and their families as they navigate the maze of service types when making care decisions.”
Specifically, the average hourly rate for a home care aide was $30.62 in 2023, a 5.2% year-over-year increase. The average per-visit rate for registered nurse was $147.72, a 1.6% year-over-year decrease.
While rates have normalized in other care settings, they have not in home care. Genworth’s (NYSE: GNW) recently released cost of care study also showed home care cost increases outpacing other sectors. Genworth’s data showed a 10% increase in home care costs, however.
Providers have also anecdotally reported cost increases of anywhere from 20% to 40%, though reports depend on geography.
The illumifin study also showed that assisted living facility rates increased by between 0.6% and 3.8%, while skilled nursing facility costs increased by just 0.4% to 1%.
Washington and New Hampshire were the most expensive home care states, the study noted. Mississippi and New Hampshire, on the other hand, were the least expensive.
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