Assisted Living and Nursing Home Costs Rising Faster Nationally than in South Carolina, Finds Genworth's Annual Cost of Care Survey

Competition among Long Term Care Providers Creates Greater Negotiating Power for Consumers

RICHMOND, VA – May 11, 2011 – According to Genworth’s 2011 Cost of Care Survey, assisted living and nursing home costs nationally are increasing at a greater rate than in South Carolina.

Nationally, the median annual cost of long term care in an assisted living facility is $39,135, an increase of 6.0 percent annually over the past six years.  In South Carolina, the annual cost of assisted living care is $36,840 and costs have risen 5.3 percent per year over the same time period.  

The median hourly rate to receive care in the home, Americans’preferred long term care setting, has increased 1.4 percent a year overthe past six years both nationally and in South Carolina, but the costs are lower statewide. The cost for home health aide services in South Carolina is $17 an hour compared to $19 per hour nationally.  

The cost for a private nursing home room in South Carolina has risen 4.0 percent annually over the past six years, and 4.4 percent nationally.  The median annual rate in South Carolina for a private nursing home room is $67,525 per year, or 13 percent lower than the national rate of $77,745 per year.  

Click here for an interactive map of long term care costs in nine regions across South Carolina, as well as nationally.

Knowing Local Care Costs for Productive LTC Discussions

Understanding local caregiving expenses is an essential first step for families faced with rising care costs, said Buck Stinson, president, U.S. Life Insurance Products at Genworth.  Genworth’s Cost of Care Survey arms consumers with the knowledge to have informed conversations,whether they are speaking with a family member, a care provider orfinancial professional, about how they might realistically pay forcare.

Now in its 8th year, Genworth’s Cost of Care Survey not only provides South Carolina residents with national and local long term care cost data, but alsoinformation on cost inflation over time.  Armed with this information,consumers and their advisors can:

• Develop a comprehensive financial plan to cover anticipated future long term care costs
• Conduct an informed discussion with family members to address future long term care needs and preferences
• Negotiate more effectively with providers of long term care services

Negotiating With Care Providers: It Never Hurts to Ask

Some consumers may be surprised to learn that they have the power tonegotiate with care providers to help contain costs.  Care providers,particularly assisted living facilities and home care agencies, oftenface stiff competition in their local markets.  Consumers should feelcomfortable addressing the issue of costs, and the opportunity to lowerthem, when discussing care options with a provider of long term careservices.  Genworth’s Cost of Care Survey provides localized cost datathat empowers families to confidently discuss care costs and optionswith service providers.

Know What to Ask: Tips for Reducing Caregiving Costs

While nursing homes generally do not discount their rates becausethey are strongly influenced by the effect of Medicare/Medicaid on theiroverall business plans, assisted living facilities and home careproviders are more apt to do so.  Tips on where to start whennegotiating with a long term care provider include:

• Know Local Costs: Genworth’s Cost of Care Map provides the median cost of long term care across the U.S., including nine regions in South Carolina,to help consumers plan for the potential costs associated with thevarious types of long term care available in their preferred locationand setting.

• Fee Waivers: Assisted living facilities often charge a one-timefee when a client first moves in.  If the facility is in a competitivemarket, or has a surplus of vacant units, they may discount or waivethis fee (or offer other discounts such as free rent for a period oftime).

• Special Rates: Facilities will sometimes have a special rate if residents movein at the first of the month or during a time that is known to havehigher vacancy rates.

• Vacancy Rates: Facilities may allow a resident to choose a more expensive room, at a lower price, if vacancies are currently high.

• Lower Hourly Rates: Home care agencies may lower their hourlyrate if the services needed are easy to staff and long term, such as aweekday schedule that is predicted to last several months.

• Shop Around: If a home care agency’s fees are at the high end ofthe local range, they may lower rates if they know the client isinterviewing several agencies and cost is an important factor.  Let careproviders know if a lower rate has been quoted elsewhere for the sameservices.

• Premium Waivers: Agencies usually charge a premium for weekendservices.  For a client that also engages services for a significantamount of weekday hours, the agency may waive this premium.

• Ask for an Upgrade: Nursing homes generally do not discount theirrates, however, certain extra amenities, or a private room upgrade, maybe available under certain circumstances.

It is important to note that most of these price concessions arebased on the availability of staff, or residential units, which is afactor that fluctuates often for some businesses.  Contacting severalproviders before making a final decision offers the best chance ofsecuring safe, appropriate services at a reasonable rate.

While consumers should seek out quality and value when shopping forlong term care, it is crucial that they have a financial plan in placeto pay for long term care, said Stinson.  The cost of long term careremains one of the biggest risks to one’s retirement security,especially with ever-increasing healthcare costs.  

For consumers interested in learning more about the cost of care intheir local market, Genworth offers an interactive map of long term carecosts in 437 regions across all 50 states, including nine regions in South Carolina, at www.Genworth.com/CostofCare.   The site offers a range of educational tools that help consumerscompare costs across geographies, project future costs and sharecomparisons and calculations with family, friends or a financialprofessional.  

Additional Resources:

• Genworth’s Let’s Talk campaign was developed to
  help families initiate conversations about long term care preferences, options, and strategies.
• Genworth Celebrates Caregivers Facebook Page: Caregivers can have their questions about caregiving challenges answered by a professional care advocate.
• An interactive Cost of Care press release containing downloadable content is available at:

http://multivu.prnewswire.com/mnr/genworthfinancial/49612.

About Genworth’s 2011 Cost of Care Survey

Genworth’s Cost of Care Survey, is the most comprehensive study ofits kind, covering nearly 15,500 long term care providers nationwide.The survey includes 437 regions which cover all Metropolitan StatisticalAreas defined for the 2010 U.S. census.  Genworth annually surveys thecost of long term care across the U.S. to help Americans plan for thepotential costs associated with the various types of care available intheir preferred location and setting. CareScout®, part of the GenworthFinancial family of companies, has conducted the survey since 2004.  Located in Waltham, Massachusetts, CareScout has specialized in helping families find long term care providers nationwide since 1997.  Genworth’s 2011 Cost of Care Survey was conducted during January, February and March 2011.

About Genworth Financial

Genworth Financial, Inc. is a leading Fortune 500 global financial security company.  Genworth has more than $100 billion in assets and employs approximately 6,500 people with a presence inmore than 25 countries.  Its products and services help meet theinvestment, protection, retirement and lifestyle needs of more than 15million customers. Genworth operates through three segments: Retirementand Protection, International and U.S. Mortgage Insurance. Its productsand services are offered through financial intermediaries, advisors,independent distributors and sales specialists.  Genworth Financial,which traces its roots back to 1871, became a public company in 2004 andis headquartered in Richmond, Virginia.   For more information, visit Genworth.com. From time to time Genworthreleases important information via postings on its corporate website.  Accordingly, investors and other interested parties are encouraged toenroll to receive automatic email alerts and Really Simple Syndication(RSS) feeds regarding new postings.  Enrollment information is foundunder the Investors section of Genworth.com.