California Cost Of Long-Term Care - Genworth Survey Results

For the past 17 years, Genworth Financial, a leading insurance holding company, has published the Genworth Cost of Care Survey, an annual analysis of long-term care expenses across all 50 United States. In California, Genworth finds that assisted living costs have climbed 6% over the past five years, with the average cost of a private one bedroom at an assisted living facility running $5,000/month for most of the state. The average cost of home care has risen to $29 per hour or an average of $5500 per month on a forty-four hour work week. Nursing home care for a private room averaged $11,500 in 2020, also a 6% increase.

Nationally, California ranks #3 in cost for in-home care service and #11 for assisted living. The most expensive states are Washington for in-home care and Delaware for assisted living. The least expensive are Louisiana and Missouri, respectively.

Why The Increase in Care Costs?

Why is the cost of assisted living, home care and nursing home care increasing? Genworth reports that 2020 saw a considerable increase in the cost of care, much of it due to the pandemic. Their research suggests that labor shortages, Personal Protective Equipment (PPE) costs, regulatory reporting and changes, employee recruitment and retention, and supply and demand are major factors in increases. The costs of dealing with the COVID-19 pandemic coincided with an escalation in other operating expenses to care providers resulting in escalated rate increases for the year.

Los Angeles Assisted Living Costs

Sarah Ordover, owner of Assisted Living Locators Los Angeles, says “Genworth’s median costs for assisted living are below average for Los Angeles. In Los Angeles, the average rent for an assisted living one bedroom unit starts at about $6,000 per month, before care. The rent for a studio averages $4000. This base rent price includes meals, housekeeping, utilities, activities, transportation and 24 hour oversight.

 Care costs are additional to the base rent price. Care can include medication management, assistance with dressing, bathing and grooming, help with toileting, eating and ambulation. This can run anywhere from an additional $300 per month to $2500 should a resident require the full spectrum of care.  Of course, prices vary depending on which part of Los Angeles you want to live.”

Assisted Living Locators Los Angeles owner Sarah Ordover is one of LA’s top senior living advisors. Certified in dementia care, Sarah is a trained aging specialist who holds an RCFE assisted living administrator license. Sarah thoughtfully guides families through the senior living decision-making process, helping them find the best solution for their loved ones. Call Sarah at 310-853-8282 for a consultation. Assisted Living Locators is free to clients.

References

https://www.genworth.com/aging-and-you/finances/cost-of-care