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Average Cost of Nursing Home Care Rises 6% Year Over Year, According to New York Life Long Term Care Insurance Study

Posted on: Wednesday, 8 November 2006, 12:01 CST

According to the results of a study commissioned by the New York Life Long-Term Care Division, the average cost for nursing home care in the U.S. climbed significantly in 2006.

Costs for both private and semi-private care were 6% higher than in 2005. The average cost of a private room with a single occupant climbed to $204 dollars a day, or $74,445 per year. Non-private rooms, based on double occupancy, rose to an average of $180 dollars a day, or $65,700 a year. Nationwide, the average private room rate increased by $11 per day, or $4,015 per year. The average semi-private room rate rose by $10 per day, or $3,650 per year.

Top Five U.S. Regions with Greatest Cost for Private Nursing Home Care in 2006

Alaska -- $388 per day

Connecticut (Southern) -- $366 per day

Connecticut (Connecticut Valley) -- $323 per day

New York (Hudson Valley) -- $311 per day

New York (New York City area) -- $311 per day

As the average life expectancy increases, due in part to medical advancements and improved health care, the demand for nursing home beds will likely intensify. According to the Bureau of Labor Statistics, a healthy couple in their mid-60s have a 50% chance that one spouse will live beyond his or her 91st birthday.

"Many people assume Medicare will pay for these nursing home residences, but the truth is that the portion Medicare covers is quite narrow and costs are rapidly rising in most U.S. regions," said Dennis O'Brien, first vice president, Long Term Care, New York Life. "Consumers must begin to prepare now for the possibility that they may require these facilities at some point in their lives. With New York Life's financial strength and focus on long-term value and stability, we are able to offer long-term care insurance products that can help consumers plan for a more secure future."

CareScout conducted the 2006 survey in partnership with New York Life. The study included more than 2300 nursing homes across 90 Metropolitan Statistical Areas (MSAs) throughout the U.S., which corresponded with the locations of New York Life's General Offices. The study was conducted by telephone during August and September 2006. The study also identified the regions with the largest price decrease for private and semi-private care from the year before, as well as the geographic areas with the lowest cost of nursing home care in 2006.

New York Life Insurance Company is the only insurer currently in the market to declare a dividend on its long-term care insurance products. Please note that dividends are not guaranteed. In 2006, the dividend was paid to LTCSelect Premier policyholders with policies that have been in-force for 3 years in the form of a decrease in their next premium payment.

Since 1988, New York Life has offered long-term care insurance driven by the dual goals of financial stability and product innovation. Consumers may learn more about New York Life and long-term care insurance at www.newyorklifeltc.com. For more information, please contact marketing@newyorklifeltc.com or call 800-224-4582.

About CareScout

Located in Wellesley, Massachusetts, CareScout helps Americans in every state find quality care providers at preferred rates. Large employers, insurance companies, risk underwriters and families rely on CareScout's proprietary quality of care ratings systems, discount network and database of more than 90,000 nursing homes, assisted living facilities and home care agencies.

About New York Life

New York Life Insurance Company is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life's family of companies offers life insurance, annuities and long-term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

Please visit New York Life's Web site at www.newyorklife.com for more information.

Source: Business Wire

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