The cost of care for older adults has been steadily increasing for years, but the effects of the COVID-19 pandemic has triggered a greater cost increase in 2020. The 2020 Genworth Cost of Care Survey reported that over a single year, assisted living facility costs increased by 6.15%, resulting in an annual national median cost of $51,600 per year. The cost of care has increased by 3.80% annually since 2004, with a total increase of 79.17% increase.
The biggest cost driver, reported by 54% of the respondents is“shortage of skilled workers.”
“Shortage of labor is definitely our biggest problem. The competition is pretty crazy. We’ve had to raise wages to compete with Target.”
22% reported other factors such as rising minimum wage, business costs, higher demand, regulatory requirements and the shift in LTC insurance policy costs/benefits.
Other findings indicate that stricter guidelines and regulations(59%) are a factor including mandatory flu and COVID vaccinations for all caregivers.
Read more on the Drivers of the Cost of Care here.