The cost of long-term care services increased across all provider types in 2021, according to a recently published 18th annual Cost of Care Survey* from Genworth. Specifically, the 2021 Cost of Care data shows the highest year-over-year increase in homecare services since Genworth began tracking the cost of care in 2004. Homecare services include homemaker services and home health aides. Individuals that provide homemaker services assist with “hands off” everyday tasks, such as cooking and cleaning. Home health aides assist with “hands on” tasks, such as bathing and dressing.
The main reason for the increase in the cost of long-term care services is supply and demand constraints. The growing demand in long-term care services is caused by the continued increase in Baby Boomers who require care and will continue to require care. The survey indicates that each day until 2030, 10,000 Baby Boomers will turn 65, and 70% will require some form of long-term care services at some point. Turnover and insufficient professional staff have contributed to an inadequate supply of caregivers, which has been an issue for the long-term care industry since before the Covid-19 pandemic. These labor shortages, comparable to other industries, are now exacerbated by competitive salaries within all sectors of the labor market and the cost of Covid-19 measures, such as PPE, trainings on new protocols, and testing. The national reported median cost for homemaker services is $26 per hour, which is a 10.64% increase from 2020. The national reported median cost for home health aide services is $27 per hour, which is a 12.50% increase from 2020.
Important to note is that a vast majority of care recipients stated that they prefer to age and receive care in their homes. The “2021 Cost of Care Survey” highlights the importance for families and individuals to actively plan for future care.
*The survey, conducted by CareScout® from June-October 2021, involved outreach to just under 68,000 providers nationwide to complete almost 15,000 surveys of nursing homes, assisted living facilities, adult day living facilities and home care providers. The compound annual growth rate is based on Genworth’s