A new study released by John Hancock Financial found that assisted living costs have increased at a lesser rate than private nursing homes over the last nine years, and the annual cost of nursing homes continues to be double that of assisted living.
The study titled Long-Term Care Cost of Care Survey, surveyed more than 11,000 providers of nursing homes, assisted living, and home health nationwide. The general findings indicated that although long term care costs continue to increase, they increased at a lower rate than inflation. Over the past nine years, inflation has averaged 4.1 percent, while assisted living costs have only increased 3.4 percent per year.
The 2011 average cost for a resident of assisted living was found to be $3,270 a month or $39,240 annually. On the other hand, a private nursing home room costs the resident $235 a day or $85,775 annually. A semi-private nursing home room also costs substantially more than an assisted living community. The costs associated with this option averages at $207 a day in 2011 or $75,555 annually.
