Announced by insurance policy management company Illumifin. 10th annual long-term care cost surveyfound that home health care costs increased more than other industries.
The Illumifin study, which “collected tens of thousands of data points from care providers across the country,” found that costs for home care aides rose by more than 5% on average in 2023.
“We leverage our 30 years of experience in senior care to provide practical solutions to insurers, consumers, providers and financial institutions,” Peter Goldstein, President and CEO of Illumifin, said in a statement. We are proud to be able to provide such data.” “We remain focused on a customer-centric approach that helps manage risk and plan for the future. Our cost of care research helps consumers and their families, as well as business partners, make care decisions. It has proven to be helpful in providing valuable knowledge when navigating the maze of service types when doing so.”
Specifically, the average hourly wage for a home care aide in 2023 was $30.62, an increase of 5.2% from the previous year. The average cost per visit for registered nurses was $147.72, a decrease of 1.6% from the previous year.
Although the ratio has normalized in other nursing care settings, it has not normalized in home care. Genworth’s (NYSE: GNW) recently released long-term care cost study also showed that home care costs are increasing faster than other sectors. But home health care costs rose 10%, according to Genworth data.
Providers are also reporting cost increases of 20% to 40%, depending on region.
The Illumifin study also showed that nursing home costs increased by 0.6% to 3.8%, while skilled nursing facility costs increased by only 0.4% to 1%.
Washington state and New Hampshire are the most expensive states for home health care, the study found. Meanwhile, Mississippi and New Hampshire had the lowest prices.
