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Long Term Care Costs On The Rise According To New York Life Study

Average Cost for Nursing Home Care Up Nearly 3% from 2006; Home Health Care Costs Rise 12%

New York, N.Y., November 28, 2007–According to the results of a study commissioned by the New York Life Insurance Company’s Long-Term Care Division, the average cost for nursing home care and for home care in the U.S. climbed significantly in 2007.

Costs for both private and semi-private nursing home care were nearly 3% higher than in 2006. The average cost of a private room with a single occupant climbed to $209 dollars a day, or $76,322 per year. Semi-private rooms, based on double occupancy, rose to an average of $185 dollars a day, or $67,554 a year. Nationwide, the average private room rate increased by $5.36 per day, or $1,956 per year. The average semi-private room rate rose by $5.27 per day, or $1,924 per year.

“It is a common misconception that long-term care refers only to care in a nursing home. In fact, most long-term care is received in the home,” said Dennis O’Brien, senior vice president, Long-Term Care, New York Life. “With rates rising year after year, a long-term care insurance policy can serve as a valuable and often overlooked resource for providing in-home care as well as through care facilities. With a focus on stable pricing and reliability, New York Life long-term care insurance can help provide policyholders with substantial financial security and peace of mind when planning for the future.”

Nationally, the average hourly rate for a home health aide hired from a Medicare Certified agency is $37.36/hr., reflecting a 12.2% increase over the 2006 survey. The rates ranged from a minimum of $8.50/hr. to a maximum of $210.00/hr. across the country. The combined average hourly rate for Medicare Certified and non-certified home health aides is $28.17/hr., reflecting a 6.1% increase from 2006.

According to the study, the highest cost areas for private nursing home care in the U.S. were as follows:

Top Five U.S. Regions for Private Nursing Home Care

1.

Alaska -

$407 per day

2.

Connecticut (Southern)  -

$348 per day

3.

Connecticut (Connecticut Valley) -

$322 per day

4.

New York (Hudson Valley) -

$318 per day

5.

Massachusetts (Boston area) –

$299 per day

 

CareScout conducted the 2007 survey in partnership with New York Life. The study included more than 3,000 nursing homes across 120 Metropolitan Statistical Areas (MSAs) throughout the U.S., which corresponded with the locations of New York Life’s General Offices. The study was conducted by telephone during July, August and September 2007. The study also identified the regions with the largest price decrease for private and semi-private care from the year before, as well as the geographic areas with the lowest cost of nursing home care in 2007.

New York Life declared a dividend for its LTCSelect Premier long-term care insurance product policyholders earlier this year. In addition to paying a dividend for the third consecutive year, the company’s long-term care sales also increased 15% in 2006, compared with an 8% decline in the long-term care insurance industry. New York Life’s sales growth marks its second year of double digit increases. Please note that dividends are not guaranteed.

Since 1988, New York Life has offered long-term care insurance driven by the dual goals of financial stability and product innovation. Consumers may learn more about New York Life and long-term care insurance at www.newyorklifeltc.com. For more information, please contact marketing@newyorklifeltc.com or call 800-224-4582.

About CareScout:
Located in Wellesley, Massachusetts, CareScout helps Americans in every state find quality care providers at preferred rates. Large employers, insurance companies, risk underwriters and families rely on CareScout’s proprietary quality of care ratings systems, discount network and database of more than 90,000 nursing homes, assisted living facilities and home care agencies.

About New York Life
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings from all four of the major credit rating agencies. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

Please visit New York Life’s Web site at http://www.newyorklife.com for more information.

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Long Term Care Costs On The Rise According To New York Life Study

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