The cost of long term care in Maryland is rising at a rate outpacing inflation, putting significant financial pressure on those in or near retirement, according to an annual study by Genworth Financial. At the same time, the current economic downturn has led to a decline in home values and investment returns for many residents of Maryland, creating further financial planning challenges for many in the state. Nationwide, the annual cost for a private nursing home room is $74,208, or $203 per day, representing an increase of 4 percent annually since 2005. This represents a rate of growth nearly twice that of the median annual inflation rate of 2.3 percent over the same period of time, measured using the Core CPI (which excludes food and fuel) reported by the U.S. Bureau of Labor Statistics. In Baltimore, this cost has risen 5 percent annually over the past five years, while costs have increased 4 percent in Bethesda and 2 percent in Cumberland during this same period. Elsewhere in Maryland, costs have risen 7 percent a year over the past five years.
 
“Many Maryland residents who had planned to tap their hard-earned nest egg to cover future long term care costs are finding this may no longer be a viable option given the economic downturn,” said Buck Stinson, president, insurance products at Genworth Financial.
 
A Snapshot of Maryland Long Term Care Costs
 
Nursing Homes: The median annual cost for a private nursing home room ranges from $69,350 in Cumberland to $86,870 in Baltimore.
 
Assisted Living: Assisted living costs in Baltimore have risen at an annual rate of 13 percent a year over the past five years to a median annual cost of $39,000 for a private room. In Bethesda, where the annual cost is $41,976, costs have remained flat over the past five years. The comparable cost in Cumberland is $31,800. Elsewhere in Maryland, the median annual cost is $39,000 and costs have risen 21 percent a year over the past five years. Nationally, the annual cost for a private room in an assisted living facility is $33,903 and costs have increased 5 percent annually over the past five years.
 
Home Care: The median hourly rate for a non-Medicare certified, state licensed home health aide ranges from $16 in Cumberland to $21 in Baltimore. Costs in Baltimore have risen 8 percent per year since 2005, while costs in Bethesda have risen 2 percent annually over the same period. The cost nationally for this type of care is $18 per hour, with costs increasing 2 percent annually over the past five years.
 
Adult Day Health Care: For adult day health care services, the median daily rate ranges from $65 in Bethesda to $81 in Cumberland. The comparable cost in Baltimore is $75 and $73 across the rest of Maryland. The daily rate nationally is $54.
 
ABOUT THE SURVEY
Full results of Genworth’s 2009 Cost of Care Survey, including detailed information about costs in Maryland, an interactive map of the cost of care in all 50 states and 331 geographic regions are available online at http://www.genworth.com/costofcare .
 
Genworth’s 2009 Cost of Care Survey was conducted by CareScout during January, February and March 2009. CareScout, which was acquired by Genworth Financial in June 2008, has conducted the Genworth Cost of Care Survey since 2004.