Annual Long Term Care Study: Costs continue to rise in Mankato and throughout Minnesota

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. Genworth Financial’s recent release of their 15th annual Cost of Care Study indicates that national average costs for assisted living facilities have jumped an astonishing 6.67% since 20171. Mankato hasn’t escaped this trend, with local assisted living costs of $4,393 per month exceeding the state average by $393 per month.

Assisted living isn’t the only form of extended care that has been experiencing a price surge. With home care accounting for 80% of all long term care, the 2.33% increase in the cost of home health aides since 2017 has the potential to greatly affect consumers as well.2

It may come as a surprise that Minnesota’s cost of care is considerably above the national average in other areas as well. In fact, the Mankato area in particular is home to some of the highest statewide costs for services like adult day care. At the same time, average costs for semi-private nursing home care statewide come in at $9,125 per month, while Mankato residents can expect to pay about $10,047 for the same service.

“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 3% per year here. Government data shows that about 80% of long term care is received outside of facilities, so when doing your planning it makes sense to plan for the care setting you prefer – most likely your own home.  Though Minnesota ranks second in the U.S. for home health aide costs, this could be due to having some of the best health care professionals and resources in the country. Long term care insurance can help ensure that you receive this same high-level of professional care when you need it most.  That could help take some of the strain off loved ones who might otherwise be providing your care, meaning both you and your caregivers may be able to stay healthier for longer.”

Increases in Minnesota:

Home Health Care
2017 Median Annual Cost 5 year annual increase
 

$66,352

 

 

3%

 

Assisted Living Facility
2017 Median Annual Cost 5 year annual increase
 

$48,000

 

 

4%

 

Private Room Nursing Home
2017 Median Annual Cost 5 year annual increase
 

$122,260

 

9%

 

 

Local Trends

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

  • Minnesota is the second most expensive state to obtain a home health aide, second only to Hawaii at an average rate of $29 per hour
  • Minnesota’s average annual costs for a home health aide exceed the national average by $1,334 per month
  • Minneapolis has the highest statewide cost for a private room in an assisted living facility, running around $4,425 per month
  • St. Cloud has the highest statewide cost for home health care aides, running around $5,911 per month
  • Statewide, Mankato has the highest cost for adult day care costing $2,080 per month

About the Cost of Care Study

This year’s study was conducted with CareScout­TM covering over 49,000 nursing homes, assisted living facilities, adult day health facilities and home care providers. 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 2018.2

For any questions or to get in contact with a long term care insurance specialist, please call 612-454-4400 or visit www.newmanlongtermcare.com.

1Genworth, Summary of 2018 Survey Findings

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

 

 

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