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Long Term Care Costs in the Capital Region Increased as Much as 18 Percent Over Past Five Years, According to Annual Genworth Financial Study

Research Finds Looming Workforce Shortage Pressures Long Term Care Costs

RICHMOND, Va.--(BUSINESS WIRE)--April 29, 2008--The cost of nursing home care in Bethesda, Md. has increased 18 percent since 2004, according to an annual Cost of Care Survey released today by Genworth Financial. In Washington, D.C., the cost has increased 8 percent over the past five years. This compares to a 17 percent increase nationwide.

The study, which found that nationwide the cost of long term care in nursing homes, assisted living facilities and in the home increased for the fifth consecutive year, also found that one year in a private nursing home in Bethesda costs $87,003 and $78,887 in Washington, D.C. By contrast, the national average for a year in a private nursing home is $76,460 - more than one and a half times the average annual household income in the U.S. of $48,201(1). Most long term care services in this country are rising at a rate faster than inflation, as the cost of providing this type of care continues to rise.

Each year Genworth surveys the cost of care in more than 10,000 nursing homes, assisted living facilities and among home care providers in all 50 states and 90 geographic regions including the District of Columbia. It is the most comprehensive cost analysis in the industry, and the only one that provides comparative data for the past five years. For the first time, this year's survey also includes adult day health care costs.

This year's Cost of Care Survey is complemented by additional research released today by Genworth entitled "A Workforce to Care for Our Aging." This study reveals an imminent shortage of caregivers. The U.S. will need to recruit 200,000 new direct-care workers each year to meet future demand among the 78 million baby boomers as they age. In addition, the caregiver workforce is dwindling and faces issues of retention.

"Rising long term care costs are creating significant financial planning challenges for millions of Americans and their families," said Buck Stinson, president of Genworth Financial's Long Term Care Insurance business. "Genworth Financial continues to conduct research on the cost of long term care so that citizens of the Capital region and nationwide understand what to expect in terms of paying for this type of care now and in the future. This information helps consumers and their advisors effectively plan to meet their financial security goals."

    Additional findings from the 2008 Cost of Care Survey include:

Assisted Living: A private one-bedroom unit in an assisted living facility in the U.S. has an average annual cost of $36,090. The comparable cost in Bethesda is $44,320 per year and $48,328 in Washington, D.C.

Home Care: Nationally, the average hourly rate for a non-Medicare certified, state licensed home health aide is $19.18, a cost that translates to $43,884 per year for 44 hours per week of care. In Bethesda, the average hourly rate is $17.65, or $40,383 per year for 44 hours per week of care. In Washington, D.C., the average hourly rate is $18.84, or $43,106 per year for 44 hours per week of care.

Adult Day Health Care: First year research findings indicate the average annual cost for five days a week in an adult day health care facility is $15,236 nationally. The comparable cost in Bethesda is $18,135 and $16,019 in Washington, D.C.

Conducted by CareScout between December 2007 and February 2008, the 2008 Cost of Care Survey provides national, state and local cost information. It is available, along with the research paper "A Workforce to Care for Our Aging," at genworth.com/CostofCare.

About Genworth Financial

Genworth Financial, Inc. is a leading public Fortune 500 global financial security company. Genworth has more than $114 billion in assets and employs approximately 7,000 people in 25 countries. Its products and services help meet the investment, protection, retirement and lifestyle needs of over 15 million customers. Genworth operates through three segments: Retirement and Protection, International and U.S. Mortgage Insurance. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit www.genworth.com.

Note to Television Broadcasters: B-roll to support this story can be down linked at the following coordinates/times:

  • Tuesday, April 29th
  • 2:00-2:15 PM ET
  • GA 26C/1 DL 3720V

  • Wednesday, April 30th
  • 04:00-04:15 AM ET
  • AMC 3, Tr. 8, DL 3860V

(1) U.S. Census Bureau, 2006

CONTACT: Media:
Yokima Cureton, 804-662-2598
yokima.cureton@genworth.com
or
Ilene Lefland, 203-378-1152 x109
ilefland@cjpcom.com
SOURCE: Genworth Financial