Increase in Long Term Care Costs in Georgia Mirror National Trends

The cost of long term care services in Georgia increased year-over-year in line with national trends as COVID-19 intensified providers’ existing challenges in meeting 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 for 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 costs of care in Georgia compare with national trends and the previous year:

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 personal protective equipment (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.

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.