Long term care continues to threaten people’s finances especially of those who have arrived at the point of acquiring it by paying out-of-pocket. Long term care costs by state vary as these are contingent on the population and demand for care in a specific area, but there’s no denying the fact that the overall cost of care in the country has made a great impact on its economy.

Various reasons trigger the continuous increase of long term care costs. First is the population of the elderly and the disabled people. As they continue to grow it is natural for long term care (LTC) providers to increase their rates as they have to bring in new equipment and hire additional caregivers or skilled nurses to be able to accommodate new patients.

Second is the type of care that an individual needs. Older individuals who have acquired or, perhaps, who are predisposed to a chronic illness will have to spend more on care as compared to those who only need assistance in the six activities of daily living (ADL) such as bathing, eating, dressing, toileting, continence, and transferring.

Another factor that determines the cost of care is the type of LTC setting. In-home care is usually cheaper than institutional and community-based LTC facilities but there are patients at home who spend a chunk of money, too, for home modification so that they can integrate communication systems and digital monitoring equipment that will allow caregivers to monitor them remotely. These are people who want to maintain independence and not have a caregiver or nurse constantly by their side.

Based on statistics, the most expensive type of LTC setting to date is the continuing-care retirement community as it provides different levels of care from assisted living, adult day care to nursing home care. This is designed for individuals who are no longer capable of living independently and its services range from personal care to medical care.

Whether you have a genetic predisposition towards an acute illness or not, you need to prepare for your future healthcare needs as the cost of care is rapidly increasing. Without the right plan it will be impossible for you to afford LTC.

Long Term Care Costs by State

Alaska still ranks first among the 50 states with the highest cost of care since it is not blessed with a big number of care providers.

Uninsured Alaskans who are currently receiving care in a nursing home fork out a whopping $227,760 annually for the use of a private room. The reason behind the unreasonable cost of care in Alaska is the scarcity of care providers which continues to challenge the federal government.

Aside from the limited number of caregivers and nurses in the state, residents don’t have easy access to nursing homes, assisted living facilities, and home health agencies as 70% of Alaska is not accessible by road. People have to travel by air just to get to the nearest LTC facility and their airfare is another pain to their finances.

If you’re presently living in Alaska but do not have plans of retiring here, take time to conduct an in-depth study on long term care costs by state. You and your family just might be better off elsewhere.