Archive for October 25th, 2011

Long Term Health Care Costs Rise More Than 5%

Tuesday, October 25th, 2011

The long term care health costs in this country are out of control, causing the government to throw out their long term care insurance plan and many companies to stop selling long term health care insurance.  According to Business Week’s “U.S. Long-Term Health Costs Rise at Faster Pace, MetLife Reports,” Maryellen Tighe reports an increase of 5.6% in assisted living costs last year.  It costs more than $41,000 a year for someone to be cared for in an assisted living facility.  Nursing home costs increased 4.4% last year, for an average yearly expense of more than $87,000.  Adult day care services increased in cost by 4.5% to an average of $70 per day.  The cost of having a health aide come into your home stayed the same at $21 per hour.

This year’s increases have been more than in the past, likely because of a struggling economy and skyrocketing health care and energy costs.  MetLife, Guardian Life Insurance Co., and Allianz SE have all stopped offering new long term care insurance plans because of skyrocketing costs.  There are still 7 million adults with long term care insurance to help cover assisted living or home health care expenses though.  Medicaid and Medicare do cover some long term health care expenses, but there are strict qualifications for those programs.  Aultcare has to worry about medical inflation rates, but long term health insurance rates have increased even higher than the average medical inflation rates.