Tom Murphy
RedwoodAge.com

Long-term care costs shot higher in the US for a fifth consecutive year - they've risen as much as 44 percent in some areas since 2004 - and a shortage of health care workers threatens to make the situation much worse, according to a nationwide study by a leading financial firm.

The annual survey by Genworth Financial, which sells retirement planning services, found the average price for a private nursing home room reached $76,460 this year, which is more than 50 percent above the average annual US income of $48,201. In Manhattan, a year in a nursing home costs an average of $145,392.

The study, which included all 50 states, looked at the prices for nursing homes, adult day care facilities, assisted living centers and other facilities that elders tend to need in later years.

The fastest-rising costs were found in Sacramento, Calif., where the price of nursing home care has soared 44 percent since 2004, the study said. The average increase nationwide was 17 percent.

The report was released at the same time as a second Genworth study that pointed to a shortage of professional caregivers as one of the factors leading to higher costs. That study, "A Workforce to Care for Our Aging," estimated the US will need another 200,000 care workers by 2030, when the number of Americans over 65 will be double what it is today.

As in other fields, many boomers in the health care industry are preparing to retire, a factor that will add to the shortage. However, Genworth reported the turnover rate for paraprofessional long-term care workers in the US is already about 20 percent higher than in other service sectors.

"With 78 million baby boomers set to retire in the next few decades, America faces an impending workforce crisis in the long-term care industry that could strain the economy and negatively impact millions of Americans and their families," said Buck Stinson, president of the company's long-term care insurance business. "These are serious problems that require collaborative, results-oriented discussions among policymakers and stakeholders."

Among the key finding of the report are:

• At a national average of $209 a day - a 17 percent increase over the rate in the first survey, in 2004 - nursing homes remain the most costly housing option for elders.
• The highest rate was in Alaska at $515 a day, and the lowest was in Louisiana at $125.
• The average for a private one-bedroom unit in an assisted living facility was about $36,090, an increase of 25 percent since 2004.
• Adult day care - studied for the first time this year - costs $15,236 a year on average for a five-day week.
• Regionally, rates vary dramatically. A state-by-state list and other information can be found on the company's site.