According to the report, the most expensive states for home health aides are North Dakota, Alaska and Minnesota at $31 per day; Washington at $30; and Hawaii at $29. The least costly are Louisiana at $18, Mississippi and Alabama at $19, and West Virginia and Arkansas at $20.
When it comes to paying for care, the report said most people believe they will do so through Medicare, health insurance or Medicaid. But, as pointed out by the report, Medicare and health insurance only cover very limited and specific types of long-term care, and Medicaid is only available to those meeting income and eligibility requirements.
The report also noted that many expect to pay for long-term care using personal savings and assets, yet only a third of consumers feel confident of having the financial resources to pay for long-term care.
The report explained that many different types of private long-term care funding solutions are available that might help mitigate the costs of care events. Hybrid solutions, which are life insurance or annuity products with long-term-care riders, have been growing in popularity in the marketplace as they are designed to meet multiple client needs, it said.
Bill Nash, senior vice president and head of distribution for MoneyGuard solutions at Lincoln Financial Distributors, said that people 65 and older will represent 20% of the nation’s population by 2030, increasing the demand for long-term-care services.
“Long-term care may be a daunting topic, but taking the time to understand the costs, plan and determine how care would be paid for may make all the difference in maintaining independence and dignity, easing the burden on loved ones, and protecting retirement savings and assets,” Nash said.
The annual “What Care Costs” survey focused on thousands of skilled nursing home, home health care and assisted-living facility providers to collect cost of care data. The cost-of-care averages are calculated from over 30,000 different providers at the national, state and metropolitan statistical area level.