New York Life Study Reveals Top 25 Most Expensive Markets for Long-Term Care Coverage

San Jose, Boise and Detroit Are New to Most Expensive List

Overall Long-Term Care Costs Have Risen by 20 Percent Since 2009

Company Launches Tool to Assist Consumers in Long-Term Care Planning

New York Life Marks 25th Year of Offering this Important Solution

(Graphic: Business Wire)

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NEW YORK--()--As costs for long-term care coverage continue to climb, a new study from New York Life has identified the 25 most expensive markets in the country for long-term care. In the last five years, Seattle, San Diego and Sacramento have moved up the most spots on the list, and San Jose, CA, Boise, ID, and Detroit have joined the list for the first time.

Statistics show that the need for and cost of long-term care are both increasing. In fact, according to the results of an independent study commissioned by New York Life’s Long-Term Care Operations, the average cost for nursing home care in the U.S. has climbed significantly in the past five years, up 20% to $95,706 per year from $79,935 in 2009. In addition, the need for care is growing, with current estimates that seven in ten Americans over the age of 65 will become cognitively impaired or unable to complete at least two activities of daily living over their lifetimes.*

“The staggering cost of nursing home care tells only part of the story. Today, about 50 percent of long-term care insurance claims begin with home care, which speaks to the preference many Americans have to receiving care at home. So the true cost of a long-term care event can be the cost of home care, time spent in an assisted living facility, and then a possible stay in a nursing home. The combined cost of that care can easily eliminate a family’s entire savings,” said Craig DeSanto, senior vice president, New York Life. “It is important for Americans to consider that for about $160 a month**, long-term care insurance could help defray the cost of long-term care and provide the financing so families can choose their desired method of care.” New York Life marks its 25th year as a long-term care insurance provider in 2014.

The top 25 most expensive markets, ranked by the daily cost of a private room in a nursing home in the U.S., are:

Rank in
2014

  Market  

Nursing Home
Private Room
Annual Rate

 

Rank in
2009

1   Bridgeport-Stamford-Norwalk, CT   $159,359   2
2   Anchorage, AK   $156,950   1
3   New York-Northern New Jersey-Long Island, NY-NJ   $155,180   4
4   Poughkeepsie-Newburgh-Middletown, NY   $155,180   5
5   Hartford, CT   $154.118   3
6   Boston-Worcester-Lawrence, MA   $146,372   6
7   Rochester, NY   $141,244   8
8   San Diego, CA   $135,554   15
9   Seattle-Tacoma-Bremerton, WA   $131,750   20
10   San Francisco-Oakland-San Jose, CA   $130,283   12
11   Philadelphia-Wilmington-Atlantic City, PA-NJ-DE   $129,239   9
12   San Jose-Sunnyvale-Santa Clara, CA   $127,130    
13   Albany-Schenectady-Troy, NY   $126,932   7
14   Portland, ME   $121,910   11
15   Honolulu, HI   $121,154   14
16   Washington-Baltimore, DC-MD   $120,709   18
17   Sacramento-Yolo, CA   $120,322   22
18   Boise, ID   $118,475    
19   Milwaukee-Racine, WI   $118,005   16
20   Manchester-Nashua, NH   $117,264   13
21   Miami-Fort Lauderdale, FL   $116,931   25
22   Buffalo-Niagara Falls, NY   $116,577   10
23   Los Angeles-Riverside-Orange County, CA   $115,165   19
24   Detroit-Ann Arbor-Flint, MI   $114,716    
25   Portland-Salem, OR   $111,909   24

Long-term care costs continue to increase with the following national averages:

National Averages   2014   2009   Percent Change

Nursing Home Private Room
Annually

  $95,706   $79,935   20%
Assisted Living Room Monthly   $4,139   $3,100***   34%
Hourly Home Healthcare   $21.86   $21   4%

Assistance for Long-Term Care Planning

New York Life recently launched a Cost of Long-Term Care Services by Area tool at www.newyorklife.com/ltccosts to help consumers begin to better understand the current, average long-term care costs in their region. The tool allows users to select from over 160 metropolitan areas that are searchable by state and view the current nursing home, assisted living facility and hourly home care rates for the area they selected.

About the Study

Univita Health, the nation’s largest long-term care administrator as well as an innovator in providing home-based care management, conducted the 2014 survey in partnership with New York Life. In order to identify long-term care trends, Univita has been conducting studies on the cost of long-term care for over 10 years, leveraging 20 years of long-term care experience and its extensive long-term care provider network.

Univita contacted more than 2,500 Skilled Nursing Facilities, Assisted Living Facilities and Home Health Care Providers to complete over 10,000 surveys between January 2013 and December 2013. The regions surveyed correspond geographically with the Metropolitan Statistical Areas as defined by the U.S. Census Bureau. The data was collected through Univita’s network certification process allowing it to report the data in a standard format across all provider types included in the survey. Univita leverages real-time data as it captures cost of care information through its certification process allowing for the construction of a larger source of referenced data for all cost of care activities.

About New York Life

New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States**** and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).***** Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments****** provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life’s website at www.newyorklife.com for more information.

*40 Must-Know Statistics About Long-Term Care from Morningstar.com, August 2013.

**Example rates based on $200 per day daily benefit, standard rates, three year benefit period, 90 day deductible, married, 55 year old applicant. Annual inflation option rate includes annual Consumer Price Index Urban-based option to increase benefits annually.

***Source: 2009 American Association for Long-Term Care Insurance (AALTCi).

****Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, May 20, 2013. See http://money.cnn.com/magazines/fortune/fortune500/2013/faq/?iid=F500_sp_method%20 for methodology.

*****Individual independent rating agency commentary as of 2/3/14.

******New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.

Contacts

New York Life
Terri Wolcott, 212-576-5624
Theresa_M_Wolcott@newyorklife.com
or
Sloane & Company
John Hartz, 857-598-4779
jhartz@sloanepr.com

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Contacts

New York Life
Terri Wolcott, 212-576-5624
Theresa_M_Wolcott@newyorklife.com
or
Sloane & Company
John Hartz, 857-598-4779
jhartz@sloanepr.com