Home Care Costs in Ohio Lower than National Average

Ohioans looking at the cost of long term care may be shocked to find how expensive it is. Most people, regardless of the state they live in, are. Fortunately, costs of home health care in Ohio are lower than the national median cost. Despite the lower cost, few would call it affordable, which highlights just how crucial it is to plan ahead for long term care.

Home Care Wins in Public Eye

Long term care isn’t something most people spend their time thinking about it, and for good reason. Who wants to picture themselves elderly, frail, and in need of help just to get around? Not most people, I would imagine. But thinking about ourselves in this way can help us get a better grasp on our retirement savings and plan for future costs that we might otherwise not be prepared for. Long term care is a daunting subject, but Ohioans can help themselves by establishing a plan to cover the costs ahead of time.

If long term care is a subject people avoid thinking about, nursing homes top the list of dreadful thoughts. Truth be told, few people want to end up in a nursing home and many even say they would rather die than live in a nursing home. If long term care is inevitable, most people want to receive that care in the comfort of their own home, surrounded by their community and in a familiar environment in which they feel at ease. Preferring home care over nursing home care doesn’t make it happen, though. Wishful thinking doesn’t accomplish much, but taking action to set up the appropriate plans does.

Cost of Home Care in Ohio

The cost of home care in the state of Ohio runs at a median cost of $43,472 annually, according to the 2014 Genworth Cost of Care Survey. While this cost may seem astronomical to some, when you consider the fact that it is actually less than half of the annual cost of a room in a nursing home, you begin to see things in perspective and understand one of the many reasons people prefer home care. The median cost of home care in Ohio is less than the national median cost, which is currently $45,188 for a year of care from a home health aide.

The minimum cost of home health care is $13/hour, which ends up being just over $27,000 a year for care. The maximum cost of home health care is $31/hour, which can result in a year’s worth of care costing more than $64,000, based on a 40 hour work week. Ohioans are fortunate that their costs are on par, if not less, when compared to the national average. Despite the lower end cost, though, it’s still important to develop a plan to pay for that care. That’s where Long Term Care Insurance comes in.

Planning Ahead

If you are in your 40s or 50s (or older) and haven’t yet considered Long Term Care Insurance, now is the time to do so. It’s important to buy a policy when you are still in good health to help you obtain the lowest premium rates possible, so delaying the purchase will only increase what you pay.

We have compiled a list of tips to help Ohioans better understand the ins and outs of Long Term Care Insurance.

The Staggering Cost of Health Care in Retirement

Aging can be a wonderful thing. As we age, we gain knowledge, experience, and memories that help us make decisions throughout our life. We learn new things every year at work and in life, we experience the beautiful feeling of interacting with our family and seeing our grandchildren, and we make memories with the people that we love doing things we are passionate about.

Aging also brings with it some changes, some of them good and some of them not so good. The cost of health care in retirement is one of those changes that is not so good and that few people are prepared for when the bill arrives. Planning for these changes can help people gain peace of mind and feel secure in their financial choices as they age.

Health Care Isn’t Cheap

Getting older usually means some of your costs go down; you’re no longer paying for your children’s expenses, to commute to work everyday, or the cost of college. It’s a comforting thing to watch your bills decrease over time, but there is one bill that might increase more than you think.

An annual Fidelity study estimates that the average 65-year-old couple retiring in 2013 will need $220,000 to cover health care costs throughout retirement. In 2012, the estimate was $240,000. Most people greatly underestimate how much money they will need for health care expenses in retirement, which can lead to serious financial problems down the road. Fidelity also found that 48% of Americans think they will need just $50,000 for health care in retirement.

Plan for Your Future Health

It makes sense that our health care costs would rise as we age. Generally, people become less healthy as they age and more susceptible to conditions that can disable them or seriously restrict their activities, like a stroke or Alzheimer’s. Still, though, we tend to not think about that kind of thing until it’s right in front of our faces, or in the form of a bill in the mail. It’s not something most people want to think about, but avoiding the subject usually does more harm than good.

Planning for your future health involves more than just thinking about it; it involves taking action. Without a plan in place to help you pay for your health expenses down the line, you may find yourself spending your hard earned assets on the cost of health care. Not exactly the ideal spending plan. Long term care is an especially pricey area of health care that can quickly take a huge toll on your nest egg.

Long Term Care

Long term care involves care that is required for an extended period of time and is received at home, an assisted living facility, or in a nursing home. Though long term care isn’t only for the elderly, the majority of long term care patients are older than 65, which is why long term care planning is often something that is decided upon during retirement planning.

The cost of long term care in Ohio is lower than the national average, but can still cause sticker shock if you aren’t prepared. A home health aide in Columbus, Ohio costs an average of $44,615 annually, while a year in an assisted living facility costs $48,600. A private room in a Columbus nursing home costs almost double that at an average of $87,053.

Without a plan in place to address these costs, they can quickly eat up your retirement savings if you or your partner need care for any reason. Even just a few months of care can use up thousands of dollars and once the care is completed, you are back at square one, as financially vunerable as ever. Long Term Care Insurance can shield your assets and help you avoid this kind of financial snafu should you ever find yourself in need of care.

Cost of Long Term Care in Ohio

In early 2014, LTC Tree’s Analytics department found that Long Term Care costs in Ohio vary less than in 36 other states. Cost of care in Ohio ranges from a high in Columbus of $87,000 for a private nursing home room all the way to $12,870 for Adult Day Health Care in Cleveland.

How to Plan

If you’re considering Long Term Care planning, there are several important factors to consider personally in addition to just the cost of care in your area. Many consumers look at Long Term Care Insurance as a hedge. You may buy a policy and never use it, so it often makes sense to partially insure your risk. For example, rather than buying a policy that pays the full $7,250 monthly cost of care, a resident of Columbus may buy a policy that pays $4,500 monthly, with the idea that it will take a large bite out of the Long Term Care cost and supplement other income coming in monthly.

Request Quotes

Without knowing the cost of insurance premiums, it’s hard to know how much insurance is too much. Build some exact quote comparisons by calling us at 614-902-3900 to speak with an Ohio State licensed independent insurance agent.

Cost of Care in Ohio by City

Where Will I Need Care?

According to industry statistics, a large portion of Long Term Care claims start in the home. Anyone who’s helped put a parent in a nursing home can probably attest to the fact that dad or mom could have used some help at home prior to entering a facility. The issue is, too many families are broadsided by the whole universe of Long Term Care. Children have their own lives to attend to, and suddenly are removed from their daily routines to help their parents, who may not have planned for LTC at all.

75% of Long Term Care Starts In-Home.

With so many Long Term Care claims starting at home, it’s not surprising that 65% of claims end in the home as well, meaning that if you have an LTC insurance policy, the odds that you remain at home the entire time you’re on claim are actually pretty high. Only when your situation escalates to needing more intensive Assisted Living or Nursing Care would it make sense to leave the home.

Many Long Term Care Policies Cover Non-Agency Caregivers

Ask your insurance representative whether the company they are recommending covers “non-agency” caregivers. Not all policies sold in Ohio will allow for this, and it may be important to you. Home Health agencies play an important role in helping their clients find trusted caregivers, but you want the flexibility to choose virtually any licensed provider regardless of their affiliation with an agency. This simple fact alone can help keep your Long Term Care costs down.

How Will You Pay?

With the cost of care averaging around $50,000/year in Ohio, it’s important to consider which assets you’ll liquidate to cover the cost of Long Term Care. With economic cycles being unpredictable, many Ohioans find it sensible to protect themselves from the high risk of needing Long Term Care with a modest insurance policy.