RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial Group’s (NYSE:LNC) newly launched long-term care website, www.whatcarecosts.com/Lincoln/2016 indicates current national averages for full-time long-term care services can range from $2,860 per month to $14,3861, depending on the setting and level of care required. Fewer than 1 in 4 people have confidence they will have the financial resources necessary to pay for long-term care services if needed, yet only 1 in 5 consumers have discussed long-term care planning with a financial professional.2
“Addressing long-term care needs requires people to first articulate their preference for the kind of care they and their family desire, and then understand the potential costs that come along with that,” says Andrew Bucklee, senior vice president and head of insurance solutions distribution for Lincoln Financial Distributors. “Often people expect to pay for long-term care expenses out of pocket, and Whatcarecosts.com gives consumers a place to go to compare costs, understand what’s most realistic and consider potential cost implications on a surviving spouse or retirement plans. The site can be a catalyst for real conversations with loved ones and taking action with a financial advisor.”
The majority of Americans turning 65 will need some form of long term care services in their lifetime3. Typically, that care begins in the home. Data shows the national average for a home health aide in 2015 increased 1.7% over 2014. The national average fee for a home health aide in 2015 was $22 per hour, which may add up to $46,000 per year based on 40 hours of care per week. The costs can be significantly greater for home health care if a registered nurse is necessary: the national average fee for a registered nurse is $83 per hour, which may cost more than $172,000 annually.
|Most and Least Expensive States for a Home Health Aide (hourly average)|
|Most Expensive||Least Expensive|
|Minnesota: $29||Louisiana: $17|
|Alaska: $28||Mississippi: $17|
|North Dakota: $27||Alabama: $19|
For those who progress to or begin their care in a skilled nursing facility, the national average for semi-private room is nearly $87,000 annually while a private room costs approximately $99,600 - a 2% increase over 2014 for each respective setting.
|Most and Least Expensive States for a Semi-Private Room in a Skilled Nursing Home (annual average)|
|Most Expensive||Least Expensive|
|Connecticut: $151,110||Texas: $56,940|
|Massachusetts: $138,335||Oklahoma: $58,400|
New York: $135,780
To help advisors and their clients plan the financing of their potential long-term care expenses, Lincoln Financial provides whatcarecosts.com as a searchable database of long-term-care cost information including in-home, skilled nursing facilities, assisted living and adult day care for states and metropolitan areas nationwide. The data can be sorted by type of care and geography. In addition, the impact of inflation on these costs may be modeled.
Lincoln’s ongoing body of research on long term care has found that consumers often have misconceptions about sources to cover long-term care. For example, many believe that Medicare or Medicaid will cover their costs when in fact Medicare only covers medically necessary care focusing on post-acute, short term services, while Medicaid will provide coverage, but requires an individual to have limited financial resources. Similarly, others may plan to rely on family to provide care, but more intense demands may be needed that go beyond the capabilities of the caregiver and may stretch the resources and relationships of loved ones.
For more information visit www.whatcarecosts.com/Lincoln/2016 (Code: 2016).
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower Americans to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $219 billion in assets under management as of December 31, 2015. Learn more at: www.LincolnFinancial.com. Find us on Facebook, Twitter, LinkedIn and YouTube. To sign up for email alerts, please visit our Newsroom at http://newsroom.lfg.com.
- Range based on 30 hours of Home Health Aide service per week and 40 hours of registered nurse services per week.
- Lincoln Financial Group Managing Long-Term Care Risks survey, September 2014
- U.S. Department of Health & Human Services brief; https://aspe.hhs.gov/basic-report/long-term-services-and-supports-older-americans-risks-and-financing-research-brief; 7/01/2015