LTCG Releases New Cost of Care Study

Study data shows cost of long term care exceeds $50,000 per year in all settings; $100,000 for nursing home.

April 2, 2020 – LTCG, the recognized leader in business process outsourcing for long term care insurance, has just released its latest cost of care survey data through its What Care Costs interactive website and detailed study. These tools are the most comprehensive resources for cost data in the long term care (LTC) insurance industry, based on over 50,000 data points collected from more than 15,000 providers, and analyzed by LTCG’s in-house actuarial team.

The newly-published 2019 data shows that costs have continued to rise for all categories of LTC settings. The five-year compound annual growth rate in cost is between 2-3 percent for skilled nursing facilities, assisted living and home health aides. Meanwhile, the cost of registered nurse (RN) and licensed practical nurse (LPN) services within a home care setting have been more stable over the past three years.

The study also demonstrates that the average cost of skilled nursing facilities (SNF) grew at the fastest rate over the prior year. Compared to last year, private and semi-private rooms at SNFs rose 4.8 percent and 4.6 percent, respectively, to $303 and $266 per day. That is nearly double their five-year trend of 2.6 percent and 2.7 percent, respectively. The cost of home health aide services rose less sharply, growing by approximately 1 percent to nearly $25 per hour since last year, versus a five-year compound annual growth rate of 2.5 percent. The cost of a studio room in an assisted living community grew to $4,241 per month, representing a 2.6 percent year-over-year increase, consistent with the five-year growth trend of 2.5 percent.

The study also found the two most expensive states for nursing home care are Connecticut and Massachusetts, which was consistent with the 2018 cost of care study. New Jersey and Delaware topped the list for assisted living costs. The least expensive states for both care options included mostly midwestern and southern states like Louisiana, Missouri, South Dakota and others.

LTCG’s study, interactive website and data file are available on a private-labeled basis for use by long term care insurance carriers or financial institutions looking to educate various stakeholders including the customers, agents, and internal staff of these organizations. The What Care Costs website offers easily searchable, compelling data visualization tools, including the average costs at a national and regional level for a variety of LTC services. These services include non-skilled home care, skilled home health care, skilled nursing facilities and assisted living facilities.

The website also allows users to sort cost information across these different types of care within all 50 states and more than 200 metropolitan areas nationwide. What Care Costs data can be forecast based on growth rates in order to predict future costs for these services. The website also contains ranking functionalities where users can compare geographies, care settings and service types as well as an interactive, color-coded US map that demonstrates a range of costs across all states.

“These resources are a valuable way for insurers and financial institutions to communicate the need to plan for long term care costs, helping to simplify complex decisions about coverage options based on the geographic area and care preferences of each individual,” said Matt Capell, Senior Vice President of Provider Solutions at LTCG. “As Americans become increasingly concerned with the cost of senior care, What Care Costs has become an essential resource for every financial services company offering products in this space.”

For more information regarding LTCG’s Cost of Care Study, please contact Jessica Ferg at

About LTCG

LTCG is the leading provider of administrative solutions and clinical services to the long term care and life insurance industry, with over two decades of experience in this space. LTCG currently manages over one million policies and serves more than 100 carriers nationwide. The company addresses all types of customer needs and policy requirements—from application processing and underwriting of new business to claims and administration of open and closed blocks. LTCG’s advanced data analytics, actuarial and risk management capabilities and unmatched industry expertise can help organizations manage their business and develop emerging products such as hybrid life/long term care policies. LTCG also provides clients with unique risk management insights built upon the industry’s largest database of long term care underwriting and claims outcomes and helps carriers bend the cost curve through innovative provider solutions and wellness programs. For more information, visit