Change in Long-Term Care Costs in Florida Mixed; Labor Market Shifts and Continued COVID-19 Pressure Affect Future Costs

RICHMOND, Va., February 16, 2022–(BUSINESS WIRE)–Whereas the nationwide annual median value of long-term care providers elevated throughout the board this 12 months, prices in Florida for nursing house care truly stayed flat or decreased since 2020, whereas costs for different long-term care providers had been usually consistent with nationwide traits. Nationally, labor market shifts drove elevated wages and COVID-19 intensified suppliers’ present challenges to fulfill the growing demand for long-term care providers, in keeping with Genworth’s 2021 Price of Care Survey.

Nationwide 2021 information exhibits a continuation of the upward trajectory in long-term care prices, although this 12 months introduced distinctive challenges as sufferers and suppliers adjusted to broader financial shifts and the consequences of COVID-19. This 12 months’s Price of Care Survey exhibits nationwide annual median prices elevated throughout all supplier sorts and elevated extra considerably for sure settings – assisted residing services (4.65%), house well being aides (12.5%), homemaker providers (10.64%), and expert nursing services (1.96% for a semi-private room and a couple of.41% for a non-public room).

Whereas labor prices are more likely to stay a major driver of future value will increase, suppliers indicated that elevated prices related to PPE and different COVID-19 protocols similar to testing, vaccination standing monitoring, and quarantining are more likely to subside as we make continued progress on lowering COVID-19 case numbers.

The chart under exhibits how the price of care in Florida compares with nationwide traits and the earlier 12 months. To see how prices have risen over a 5- or 10-year interval, see the development charts on www.genworth.com/costofcare.

“The Price of Care Survey has as soon as once more underscored the significance of planning forward for long-term care prices and highlighted the necessity to take into account the place and the way an individual needs to obtain care,” stated Brian Haendiges, President and CEO, Genworth U.S. Life Insurance coverage. “Additional, our Past {Dollars} analysis exhibits that having a long-term care plan may help alleviate among the emotional, monetary, and bodily stress of discovering look after a cherished one. Genworth is working to offer individuals with the merchandise, providers, and options to assist navigate the challenges of ageing—and our annual Price of Care Survey and the accompanying interactive web site are extremely helpful instruments to assist households assess care choices in addition to the prices related to these choices. It’s a nice first step to creating a plan upfront of when you’ll need it.”

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Why Prices Are on the Rise

Since Genworth began monitoring the price of care in 2004, the price for long-term care providers has been on the rise pushed by provide and demand. Every single day till 2030, 10,000 Child Boomers will flip 65⁸ and 7 out of ten of them would require long-term care providers and assist sooner or later⁹. The extent of care wanted by this quickly ageing inhabitants has itself elevated over time¹⁰. The excessive turnover fee and inadequate provide of execs to fulfill this rising demand pre-date the COVID-19 pandemic¹¹, however are actually amplified as these offering care on the frontline should take into account their very own danger of publicity towards growing alternatives for aggressive salaries, coaching, and development in different strains of labor.

“Much more than in prior years, the elevated demand for labor and the present nationwide labor scarcity have made it harder to rent and retain long-term care professionals,” stated Brian Haendiges, President and CEO, Genworth U.S. Life Insurance coverage. “These challenges are coupled with the broader development of rising wages and will increase in the price of doing enterprise related to regulatory, worker certification, and tools prices, which have all been exacerbated by the pandemic.”

“There may be fierce competitors for a restricted variety of care professionals, and plenty of are leaving the business in pursuit of upper paying jobs or due to considerations about potential publicity to COVID-19 whereas on the job. The prices of recruiting, retaining, and coaching new care professionals is more likely to stay excessive as we strategy 2023,” Haendiges stated.

Whereas labor prices are more likely to stay excessive, conversations with care providers suppliers point out that elevated prices related to PPE and different COVID-19 protocols similar to testing, vaccination standing monitoring, and quarantining might subside as we make continued progress on lowering COVID-19 case numbers. Nonetheless, it’s doubtless that extensive variability in care prices for markets throughout the U.S. will proceed on account of state and native laws, demographics, and inhabitants shifts.

Genworth’s Price of Care Planning Sources

Genworth is dedicated to serving to individuals find out about, perceive the challenges, and appropriately plan for the price of long-term care providers. The next are assets that may assist with the planning course of:

About Genworth’s 18^th Annual Price of Care Survey

Genworth’s annual Price of Care Survey, some of the complete research of its type, contacted greater than 67,000 long run care suppliers nationwide to finish nearly 15,000 surveys for nursing houses, assisted residing services, grownup day well being services and residential care suppliers from June to November 2021. The survey contains 437 areas based mostly on the Metropolitan Statistical Areas, outlined by the Workplace of Administration and Price range as a core space containing a considerable inhabitants nucleus, along with adjoining communities having a excessive diploma of financial and social integration with that core. Nonetheless, on account of statistical variance precise prices for long-term care providers might differ from the projected value based mostly on ZIP Code or location. CareScout®, a part of the Genworth Monetary household of corporations, has performed the survey since 2004. Situated in Waltham, Massachusetts, CareScout has specialised in serving to households discover long run care suppliers nationwide since 1997.

About Genworth Monetary

Genworth Monetary, Inc. (NYSE: GNW) is a Fortune 500 supplier of merchandise, providers and options that assist households handle the monetary challenges of ageing. Headquartered in Richmond, Virginia, we apply our almost 150 years of expertise every day to serving to individuals navigate caregiving choices and fund their long run care wants. Genworth can also be the dad or mum firm of publicly traded Enact Holdings, Inc. (Nasdaq: ACT), a number one U.S. mortgage insurance coverage supplier. For extra info on Genworth, please go to https://www.genworth.com/. Once in a while Enact individually releases monetary and different details about its operations. This info might be discovered at https://ir.enactmi.com/.

Footnotes:

¹ Known as Residential Care services in California.
² Primarily based on 44 hours per week by 52 weeks.
³ Primarily based on 5 days per week by 52 weeks.
⁴ Primarily based on 12 months of care, non-public, one bed room.
⁵ Primarily based on twelve months of care.
⁶ Primarily based on 2020 and 2021 Annual Share Change.
⁷ Rating based mostly on the very best to lowest value per state for every care class.
⁸ “2020 Census Will Assist Policymakers Put together for the Incoming Wave of Ageing Boomers” (https://www.census.gov/library/tales/2019/12/by-2030-all-baby-boomers-will-be-age-65-or-older.html), website accessed 1/25/22.
⁹ 2021 U.S. Division of Well being and Human Providers (https://acl.gov/ltc/basic-needs/how-much-care-will-you-need), website accessed 1/25/22.
¹⁰ Genworth Past {Dollars} 2021 (https://professional.genworth.com/riiproweb/productinfo/pdf/682801BRO.pdf), website accessed 1/25/22.
¹¹ 2020 “The Ballooning Prices of Lengthy Time period Care,” American Motion Discussion board, (https://www.americanactionforum.org/analysis/the-ballooning-costs-of-long-term-care/), website accessed 1/25/22.

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Contacts

Media Contact:
Danielle Bolt
Danielle.bolt@genworth.com