Looking to Buy Long Term Care in St. Cloud?

What You Need to Know About the Rising Cost of Care

The good news is people are living longer. The bad news is we’re getting sick as we age and long term care can be expensive. Currently, 80% of long term care is provided within the home.1 Most people prefer to receive this form of care for as long as possible, but those costs are increasing. Genworth’s recent release of their 14th annual Cost of Care Study indicates that national average costs to obtain a home health aide are up an astonishing 6.17% since 2016.  St. Cloud hasn’t escaped this trend; costs here exceed the Minnesota average for a homemaker health aide by about $400 a month.

Homecare isn’t the only form of LTC that has been experiencing a price surge. Assisted living facilities and private nursing home care have seen increases of 3.36% and 5.5% since last year as well. 2

It may come as a surprise that Minnesota’s average cost of care surpasses the national average in several categories. In fact, St. Cloud is home to some of the highest costs for homemaker health aides in the state.

“There is a silver lining in all of this,” says Deb Newman, founder and CEO of the Richfield-based insurance agency, Newman Long Term Care. “While facility care costs are growing more rapidly, home care in Minnesota has seen much more modest growth, with costs increasing about 1% per year here. This means that people who plan ahead with long term care insurance may be able to create a plan designed primarily for home care costs with a modest inflation rider that increased their benefit by 1 or 2% compounded annually. While that approach might not cover all of their expenses should they end up needing facility care, it will still put a significant dent in that cost, while having helped them prepare for the more realistic needs of home care. This can make meaningful coverage more affordable, and more importantly, provide resources and tools to family caregivers who may help to keep them comfortable at home.”

Increases in Minnesota:

Home Health Care
2017 Median Annual Cost 5 Year Annual Increase





Assisted Living Facility
2017 Median Annual Cost 5 Year Annual Increase





Private Room Nursing Home
2017 Median Annual Cost 5 Year Annual Increase



Local Trends

Genworth’s study also revealed the following key trends in the major metro areas of Minnesota:

  • Minnesota is the third most expensive state for home health care, second only to North Dakota and Alaska and tied with Wyoming at a median price of $61,776 annually
  • Minnesota’s average annual costs for a home health aide exceed the national average by $1,049
  • Minneapolis has the highest cost for a private room in an assisted living facility, running around $ 4,506 per month
  • St. Cloud has the highest cost for home health care aides, running around $5,554 per month
  • Mankato has the highest cost for nursing home care; a private room costing $9,891 per month

About the Cost of Care Study

This year’s study was conducted with CareScoutTM, covering over 15,000 long term care facilities around the nation and including 440 regions. Respondents were picked randomly from the database within each long term care insurance category. Surveys were conducted with respondents from all 50 states including the District of Columbia and Puerto Rico during May and June of 2017.   The full cost of care study can be found online at: https://www.genworth.com/sales-center/education/cost-of-care.html

1 Congressional Budget Office, Rising Demand for Long-Term Services and Supports for Elderly People

2 Genworth, Summary of 2017 Survey Findings


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