Recession slows cost growth at some long-term care facilities
There were smaller cost increases at some long-term care facilities from 2008-2010 as a result of the economic recession, according to a new analysis from Prudential Financial Inc., a financial services company.
Between 2004 and 2010, the average compound annual growth rate for long-term care was roughly 6%, according to the Prudential report released Monday. Cost increases have slowed since then and particularly since 2008.The price of assisted living rose by only 2% since 2008, compared to 13% in the two previous years. The national average cost for a certified nursing assistant remained flat at $21 per hour. Since 2008, the average price of a private nursing home room rose 14% to $247 per day, or $90,155 per year, the report said.
For the first time, the bi-annual Prudential Financial report also surveyed consumer sentiment on the costs of, and funding for, long-term care services. Roughly one-quarter of consumers did not know the cost of a day in a nursing home. More than one-third believe private insurance and Medicare will pay the full cost of their future extended care needs, said Malcolm Cheung, vice president of Prudential Long-term Care Insurance, in a statement.