How much are LTC costs likely to increase over the coming years?

Historically, LTC costs have increased in excess of the consumer price index. For example, according to a MetLife study which has been performed annually, the nationwide average annual cost of skilled nursing care increased from $61,000 in 20021 to $79,900 in 20092 – an increase of 31% in just 8 years. During the same period, the consumer price index rose only 19%.3

Furthermore, with a “silver tsunami” of baby boomers about to reach the age when they are likely to need LTC, we anticipate that a high demand for caregivers will make the cost of long term care rise even more rapidly over the coming years.

 

1 Corporate Press Release dated April 26, 2002, Metropolitan Life Insurance Company. Internet, February 4, 2003. Available: http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,1674,P2572%257ES349,00.html.
2 The MetLife Market Survey of Nursing Home and Assisted Living Costs,” October, 2009, (Westport, CT: MetLife MatureMarket Institute), 19. Internet, January 4, 2010. Available:  http://www.metlife.com/assets/cao/mmi/publications/studies/mmi-market-survey-nursing-home-assisted-living.pdf?SCOPE=Metlife#Page=3
3 Based on comparison of the “all items” category in the Annual Average Indexes reports for 2009 and 2002, as published by United States Department of Labor at http://www.bls.gov/cpi/cpi_dr.htm.
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