Wednesday, July 17, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, December 2, 2020
Long Term Care: Hawaii Costs Soaring Faster
By News Release @ 2:35 PM :: 3227 Views :: Health Care, Cost of Living, COVID-19

Increase in Long Term Care Costs in Hawaii Surpass National Trends; COVID-19 Pressures Future Costs

News Release from Genworth Financial, Inc., Dec 02, 2020

RICHMOND, Va., Dec. 2, 2020  -- The cost of long term care services in Hawaii increased year-over-year in line, surpassing national trends as COVID-19 intensified providers' existing challenges to meet the increasing demand for long term care, according to Genworth's 17th annual Cost of Care Survey

National 2020 data shows a continuation of the upward trajectory in long term care costs, though this year proved to be like no other as patients and providers struggled to cope with the effects of COVID-19.  This year's Cost of Care Survey shows national annual median costs increased across the board -- assisted living facilities (6.1%), home care (4.3-4.4%) and skilled nursing facilities (3.2-3.5%).  

Providers indicated they will have to raise rates again in the next six months to cover the added cost of providing care under the extraordinary challenges posed by COVID-19. 

Here's how the cost of care in Hawaii compares with national trends and the previous year:

Annual Median Cost of Long Term Care Support Services for Hawaii

Care Category 2020 Annual Cost Change Since 2019 (6) State Rank (High/Low) (7) 2020 Annual Cost Change Since 2019 (6)
Homemaker Services $640,642 4.67% #12 $537,682 4.44%
Home Health Aide $686,402 9.57% #4 $549,122 4.35%
Adult Day Health Care $189,803 0.00% #35 $192,403 -1.33%
Assisted Living Facilities1 $600,004 14.29% #12 $516,004 6.15%
Nursing Home   Semi-Private Room $1,441,755 3.13% #8 $930,755 3.24%
Nursing Home Private Room $1,656,195 3.24% #4 $1,058,505 3.57%


Why Rates Are on the Rise

Rising rates are not a new phenomenon for caregivers or the long term care industry; however, COVID-19 has heightened the severity of already existing factors as well as introduced many new challenges.

In a supplemental study to delve into the cause of the cost increases, providers cited the following factors:

  • A shortage of workers in the face of increasing demand for care, compounded by competition from higher-paying, less-demanding jobs; anxiety about exposure to COVID-19 and parents needing to stay home with school-age children
  • Increased spending for training on new safety procedures, testing, purchase of PPE and cleaning supplies
  • Higher mandated minimum wages as well as higher recruiting and retention costs, including hazard pay of up to 50% more for workers caring for COVID-19 patients, and added benefits such as free childcare
  • An increase in the cost of doing business, including regulatory, licensing and employee certification costs.

Although many providers contacted by Genworth said they were trying to absorb these new costs, more than half (62%) predicted that they would eventually be forced to raise rates in the next six months with 43% saying those increases would top five percent or more.

The Importance of Long Term Care Planning

"The COVID-19 pandemic has reinforced the need for individuals and families to plan ahead for how and where they want to receive care when they can no longer care for themselves and how they will pay for those costs, most of which are not covered by Medicare or health insurance," said Gordon Saunders, senior brand marketing manager at Genworth who manages the Cost of Care Survey.

"Our purpose as a company is to help people prepare for the challenges of growing older so that they can continue to live their lives on their own terms.  We provide our annual Cost of Care Survey and award-winning interactive website to enable individuals and their families to understand the costs of care, which is the first step toward planning for these expenses down the road," he said.  

In addition to the Cost of Care calculator, Genworth's website contains long term care planning tools, practical information on topics such as understanding Medicare and Medicaid, conversation starters, impairment simulations, options for financing long term care, and videos of real families sharing their long term care stories.  

To access 17-year Cost of Care trend charts, click here.

To access tables ranking states from the highest to lowest cost in each care category, click here.

  *   *   *   *   *

About Genworth Cost of Care Survey

Genworth's annual Cost of Care Survey, one of the most comprehensive studies of its kind, contacted nearly 60,000 long term care providers nationwide to complete almost 15,000 surveys for nursing homes, assisted living facilities, adult day health facilities and home care providers during July and August, 2020. The survey includes 435 regions based on the Metropolitan Statistical Areas, defined by the Office of Management and Budget. CareScout®, part of the Genworth Financial family of companies, has conducted the survey since 2004. Located in Waltham, Massachusetts, CareScout has specialized in helping families find long term care providers nationwide since 1997.

Table Footnotes:

1 Referred to as Residential Care facilities in California
2 Based on 44 hours per week by 52 weeks
3 Based on 5 days per week by 52 weeks
4 Based on 12 months of care, private, one bedroom
5 Based on 365 days of care
6 Based on 2019 and 2020 Annual Percentage Change
7 Ranking based on the highest to lowest cost per state for each care category


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii