One of the most comprehensive studies of its kind analyzed15,000 surveys for nursing homes, assisted living communities, adult day health facilities and home care providers.
The rate for long-term care services increased above inflation across all care types last year, according to the 2024 Cost of Care Survey conducted by Genworth and CareScout. Growth in assisted living community and homemaker rates was most pronounced, at 10% each.
Assisted living community rates increased to an annual national median of $70,800 per year. The report noted that assisted living occupancy rates also increased year over year, from 77% to 84%, “which may be pressuring supply and driving higher rates.”
Nursing home rates also increased last year. The national annual median rate for a semi-private room in a nursing home rose to $111,325, an increase of 7%, and the rate for a private room in a nursing home expanded by 9% to $127,750.
The annual national median rate for adult day care was $26,000, representing a 5% increase over 2023.
Homemaker services, which include nonhealthcare-related activities such as cooking, cleaning and running errands, had an annual median rate of $75,504 in 2024. The annual median rate for a home health aide, which includes tasks such as bathing, dressing and feeding, increased to $77,792.
“Driving the outsized increase in homemaker services is the compression between home health aide and homemaker service rates,” the report said. “Two-thirds of home care agencies surveyed now charge the same rate for both types of service, where the less clinical homemaker tasks historically have demanded lower rates.”
For home care services, labor costs were the top factor contributing to rate increases, the report stated.
“We make plans to buy a house, send our kids to college and even to retire, but few Americans plan for future long-term care needs,” CareScout Insurance CEO A. Lynn White said. “The Cost of Care Survey is a great tool to inform this essential planning as families consider how they’ll pay for care should they need it.”
The cost of long-term care services increased across all care types, according to the 2024 Cost of Care Survey conducted by Genworth and CareScout. While homemaker and assisted living community 1 costs increased the most at 10%, the increase for most care types continued to outpace inflation.
“Genworth and CareScout are committed to helping our customers create person-centered plans for how they want to receive care as they age,” said Jamala Arland, President & CEO, Genworth U.S. Life Insurance. “That means integrating a person’s values, preferences, and goals into the care they receive. The Cost of Care Survey is a great resource for individuals starting to create a plan, who want to learn more about different care types and see how costs may grow over time.”
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