Home care inflation rate only 2.5%
Although the cost of care has continued to rise each year, Genworth’s survey reveals that the cost for home health services has increased an average of only 2.5% each year for the past 5 years. Scott Olson, co-owner of LTCShop.com explained in a recent online forum, “The long-term care inflation right is very different from the medical inflation rate. Medical inflation is driven by costly research and development, expensive prescription drugs, and highly trained personnel. The long-term care inflation rate is driven primarily by the labor market. The cost of labor has been relatively low over the past decade.”
Genworth’s survey revealed the 5-year average inflation rate for all of the main care settings:
Home Care provided by Home Health Aides
Assisted Living Facilities
Adult Day Care
Private Room in a Nursing Home
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