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.