May 10, 2016, Emily Mongan, McKnights - The average costs of semi-private and private nursing home rooms continued to climb from last year, insurance provider Genworth Financial said in a report released Tuesday, with a private room costing almost $8,000 a month. Genworth's 2016 Annual Cost of Care survey found costs rose across all care settings in the past year with the exception of adult day services, which dipped 1.25%.
In the nursing home setting, the monthly cost for a private room rose to $7,698, up more than one percent from 2015. Semi-private room costs jumped 2.27%, to $6,844 per month.
Those increases put skilled nursing homes at the top in respect to long-term care's five-year annual growth rates, the report showed. Between 2011 and 2016, costs for semi-private and private rooms rose more than 3%.
Those costs are likely being driven by the number of nursing home residents admitted to facilities with chronic medical conditions such as diabetes. As costs rise, the majority of people who will require long-term care at some point in their life grossly underestimate the costs associated with the care, the Genworth survey notes.
Among the groups most susceptible to underestimating costs are the ones who are most likely to be affected by long-term care events. This includes single adults, who may not have a partner to rely on for caregiving needs, and adults under age 45, who are more likely to have a parent needing long-term care.
"Although the high cost of long-term care in America is considered the 'new normal,' it does not change the reality of what is certainly one of the biggest societal issues of our time — that at least 70% of Americans over age 65 will need some form of long-term care services and support during their lives," said Tom McInerney, president and chief executive officer at Genworth.