Study: Oklahoma 48th in nursing home costs

Journal Record, The (Oklahoma City), Aug 19, 2008 by Marie Price

At $56,210, Oklahoma has the 48th-lowest average annual private- room nursing home cost among the 50 states and the District of Columbia, according to a new study by Prudential Financial Inc.

Yearly costs range from an average of $48,180 in Louisiana up to $183,595 in Alaska. In 2006, Oklahoma ranked 49th among the states.

Oklahoma ranks 45th in average annual assisted-living facility costs, at $29,556. That is down from its 2006 ranking of 31st.

Alaska also has the highest annual average assisted-living cost, at $89,946. Nevada reported the lowest cost, at $19,980 per year.

Andy Mako, Prudential senior vice president for long-term care insurance, said many Americans believe that Medicare or private health insurance will pay for their long-term care needs.

"The reality is, long-term care risk is substantial, and under current Medicare and Medicaid policy, much of it is the uninsured private responsibility of individuals who pay for care, and of families who care for their relatives," Mako said.

In addition to its other insurance lines, Prudential has more than 20 years' experience in long-term care insurance.

At $37 per hour, Mississippi has the highest average cost for home health aides and certified nursing assistants. Louisiana has the most affordable rate, at $12. In Oklahoma, the average hourly rate is $18, according to the study. The national average is $21 per hour.

The average cost of long-term care rose between 5 percent and 13 percent over the past two years, varying by type of service, the study found.

The greatest cost-rise occurred in assisted-living care, increasing about 13 percent since 2006 and 41 percent since 2003.

The average daily cost in an assisted-living community is more than $100, or about $3,241 per month. The monthly base-rate average in Oklahoma City was reported as $2,203, and $2,681 in Tulsa.

Over the past two years, nursing home rates increased more than 7 percent, and about 30 percent over the past five years.

This year, the national average daily cost of a private nursing home room is $217, or $79,205 per year.

Home health care costs rose 5 percent over the past two years, about 17 percent since 2003.

U.S. census statistics show that by 2030 the American population 65 years of age and older will more than double, to 71 million, making up about 20 percent of Americans.

Facility-care projections cited in the study show that more than one-third of Americans 65 years of age will receive some nursing home care during their lifetime.

Almost 70 percent of U.S. workers see long-term care insurance as important to retirement planning, but only 10 percent currently own a long-term care policy, the study determined.

Prudential officials said the costs of long-term care can deplete even a sizable nest egg, without proper planning.

"While no one wants to think about 'that time' when they may need care in an assisted-living facility, a nursing home or at-home care, it's essential that consumers consider the costs now and implement a financial plan to help ensure they receive the quality of care they desire," Mako said.