Taxation & Estate Planning

Long-Term Care Costs Rising - NJ Averages $280 a day

By Deirdre R. Wheatley-Liss, Esq.

It is no surprise that a lead NJBiz article is "Long-Term Care Costs on the Rise". It is less of surprise that NJ is on the high side of average for the cost of long term care nationwide.

Average long-term care costs have jumped between 5 percent and 13 percent
nationwide since 2006, according to a study released today.

In New Jersey, the average daily rate for a private room in a nursing home in the Somerset area is $280 per day, or $102,200 annually, according to the "2008 Long-Term Care Cost of Care" report by Prudential Financial, Inc. (NYSE: PRU). In the U.S., the average cost is $217 per day, or $72,205 per year.

"Many Americans mistakenly believe that Medicare or private health insurance will pay for their long-term care needs," said Andy Mako, senior vice president of long-term care insurance at Newark-based Prudential Financial. "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."

Other average long-term care costs highlighted by the study include:
Semi-private room in a nursing home
N.J.: $254 per day
U.S.: $194 per day

Assisted-living facility
N.J.: $3,538 per month
U.S.: $3,241 per month

Home care from a home-health aide or certified nursing assistant
N.J.: $26 per hour
U.S.: $21 per hour

Full post as published by New Jersey Estate & Elder Planning Blog on August 18, 2008 (boomark / email).