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Posted: February 28, 2006
Long-Term Dementia Care Options Expand, at Times with a Steep Price
Long-term care options for Alzheimer’s and dementia patients has come under a microscope, with a recent study indicating that more and more U.S. assisted living facilities offer specialized care – but at a price that can range up to $3,000 extra per month.
The survey, conducted by the MetLife Mature Market Institute, found that 61% of assisted living facilities provide specialized dementia care, and half of those facilities charge extra for the service. Of those with additional costs, rates ranged considerably, from $50 to $3,000 per month with the majority reporting additional costs of up to $1,000 per month.
The study found 36% of nursing homes surveyed had separate dementia units, but in contrast to assisted living facilities 80% charged no additional fees. Of those with special units, fees ranged from $10 to $25 per day – less than $1,000 extra per month at most.
The findings also indicated that most agencies – 71% – offering home health aide services provided their staff with specific Alzheimer’s or dementia care training.
"Care for those with Alzheimer's disease is an increasing concern for families as the population ages," said Sandra Timmermann, director of the MetLife institute. "This new research contributes to our previous findings indicating that many assisted living facilities, nursing homes and home care agencies are addressing Alzheimer's care through specialized services, staff training and the creation of living units designed specifically for those who have Alzheimer's disease. And the number of facilities providing dementia care is bound to grow in the years ahead.
The implication of additional fees charged by long-term care facilities can be substantial in the case of dementia and Alzheimer’s treatment, said Timmermann. "According to our annual market surveys of nursing homes and assisted living facilities, the overall cost of long-term care is increasing each year at rates greater than inflation," she noted. "Because individuals with Alzheimer's may live from 8 to 10 years and even up to 20 years with the disease, families may need to pay for care over a long period of time.
“While we found that many facilities do not charge extra for Alzheimer's care, or charge only small additional fees, the generally high cost of long-term care, the duration of the disease and the hidden costs associated with the need for 24-hour supervision can lead to very high expenditures over time."
The average price in 2005 for a private room in a nursing home in the United States was $74,095 annually and $34,860 for an assisted living facility, according to the Mature Market Institute. For care received through a home care agency in 2005, the national average for home health aide service was $19 per hour, $17 for homemaker or companion services, also according to the Institute. Assisted living costs increased 15% from 2004 to 2005 while nursing home costs rose 5.7%; home health care aide costs were up 5.5% over the same period.
With more than 4.5 million Americans currently diagnosed with Alzheimer’s and the number expected to skyrocket in the years ahead without a cure for the mind-robbing disease, the financial impact on the nation’s families, business and government is forecast to be very steep.
For example, the Alzheimer's Association and the National Institute on Aging estimate that the national direct and indirect annual costs of caring for individuals with Alzheimer's disease are at least $100 billion. It has also been estimated that Alzheimer's disease costs American business $61 billion a year, according to a report commissioned by the Alzheimer's Association. Of that figure, $24.6 billion covers Alzheimer health care and $36.5 billion covers costs related to caregivers of individuals with Alzheimer's, including lost productivity, absenteeism, and worker replacement.
MetLife’s study data regarding additional costs for dementia patients at assisted living facilities and nursing homes was part of additional questioning posed for the 2005 MetLife Market Survey of Nursing Home & Home Care Costs and the 2005 MetLife Market Survey of Assisted Living Costs. The studies were conducted for the MetLife Mature Market Institute in 87 geographic areas within all 50 states and the District of Columbia. Areas were chosen on the basis of population to obtain a reasonably balanced sampling.
MetLife’s study data regarding additional costs for dementia patients at assisted living facilities and nursing homes was part of additional questioning posed for the 2005 MetLife Market Survey of Nursing Home & Home Care Costs and the 2005 MetLife Market Survey of Assisted Living Costs. The studies were conducted for the MetLife Mature Market Institute in 87 geographic areas within all 50 states and the District of Columbia. Areas were chosen on the basis of population to obtain a reasonably balanced sampling.
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© 2006 Pederson Publishing, Inc. All Rights Reserved.
Commercial use, redistribution or other forms of reuse of this information is strictly prohibited without the prior written permission of Pederson Publishing.
Commercial use, redistribution or other forms of reuse of this information is strictly prohibited without the prior written permission of Pederson Publishing.
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