Alaska, New Jersey and Connecticut lead the most expensive US nursing home markets
On average, it costs nursing home residents about $39 more per day to stay in a private room compared to a semi-private room, or $315 compared to $276.
While some might consider the difference to be relatively small, it really all depends on average per capita income. Medicaid beneficiaries generally must not earn more than $13,590 a year to qualify for assistance, according to a national survey led by the Kaiser Family Foundation and the Georgetown University Center for Children and Families.
There are no income limit for Medicare beneficiaries age 65 and older, but some may pay more for premiums based on annual earnings.
About 62% of SNF residents have Medicaid coverage, while 13% are covered by fee-for-service (FFS) Medicare and 25% fall into a mix of Medicare Advantage and private payment, according to a recent report published by ATI. Advisory.
Lincoln Financial Group Insurance and Financial Planning Company is broken down what different care facilities cost recipients, separating skilled nursing facilities, assisted living facilities and home care on its What Care Costs website.
What Care Costs provides average rates based on over 30,000 different skilled nursing facilities, home care and assisted living sites, nationwide, state and metro.
Alaska, Connecticut, and New Jersey were the most expensive states for daily skilled nursing costs—private room costs alone are $531, $481, and $479, respectively.
Semi-private rooms in the three most expensive states cost $452 (Alaska), $426 (New Jersey), and $453 (Connecticut). That’s a difference of $79, $55, and $26 for each state.
Cost projection averages for Alaska alone are projected to increase to $713 for a private room and $608 for a semi-private room by 2031. Similarly, Connecticut will see private rooms increase to $646 and semi-private rooms at $609 within the same timeframe.
Semi-private and private rooms across the state have fluctuated over the past four years, with 2019 seeing the highest spike in private rooms over $600 per day, while semi-private rooms for the same year fell below $400.
Otherwise, daily rates for both room types in Alaska have remained between $400 and $600.
“If you compare it to a college dorm for example, a single room doesn’t cost twice as much as sharing a double room with a roommate, but it’s more expensive,” Heather Deichler, senior vice president of MoneyGuard Business Management at Lincoln Financial, said in a statement.
Connecticut and New Jersey can get even more expensive if a facility is located in a certain metropolitan area, the data shows.
Private rooms in the New York/Northern New Jersey/Long Island metro area pay $523 per day for a private room, and SNF private rooms in Philadelphia/Wilmington/Atlantic City are $440 per day.
Private rooms from Connecticut to Hartford can cost $506 per day, while private rooms from New London-Norwich are below the state average at $381.
The Lincoln website provides a searchable database of long-term care cost information for states and metropolitan areas across the United States. Data can be sorted by geography and type of care, and now care costs can be projected into the future.
While Lincoln’s SNF data was based on costs for private and semi-private rooms, home health care pricing was measured by averages of hours per visit for home health aides and the cost of one registered nurse and one registered nurse per visit.
Lincoln collected monthly assisted living rates for a studio as well as one-bedroom and two-bed apartments.