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A new report finds that the median cost of a room in an assisted living community is less than half the median cost of a private room in a skilled nursing facility. The cost disparity is more pronounced than last year, with skilled nursing costs increasing at a much higher rate than assisted living costs.

Genworth Financial released its annual report analyzing long-term care costs across the nation. According to the report, the median annual rate for a resident of an assisted living community is $39,600.  The median annual rate for a private room at a skilled nursing facility is $81,030, while the median annual rate for a semi-private room is $73,000. These numbers reflect a greater disparity of costs than were seen in last year’s survey. The cost of assisted living rose just 1.19 percent over the last year. While the cost of a private room at a skilled nursing facility increased 4.23 percent, and the cost of a semi-private room at a skilled nursing facility increased 3.63 percent over the same period.

The survey also documented state-by-state data. Alaska has the highest private room skilled nursing costs and Oklahoma has the lowest. The median rate for a private room at a skilled nursing facility in Alaska costs $232,505 annually, while the rate in Oklahoma is $53,597. New Jersey, with a median annual rate of $68,556 has the highest rate for assisted living, while Missouri has the lowest rate, $29,025 annually.

Read the full report: The Genworth 2012 Cost of Care Survey to learn about your state’s long term care costs and nationwide statistics.

Presenting the results of the American Housing Survey, a new report describes the housing challenges presented by the increasing senior population and strategies for facing these challenges, including expanding affordable housing choices for older adults.

The report, created by the non-profit Center for Housing Policy, states that many of the senior housing challenges we are facing now, will be exacerbated in the coming years. The report predicts that as the population ages more people will be living with a disability and will not have access to affordable housing options. Currently 64 percent of households, in which the oldest member is 85 or older, contain a person with a disability. Poorer households are more likely to be affected by a disability and less likely to have the funds to move into assisted living or retrofit their homes to accommodate the disability. If this percentage remains stable, a larger number of seniors will be without adequate support.

The report points out that even seniors without a disability are likely living in an inappropriate setting. “Even if in good physical condition, many housing units may be neither safe nor suitable for older adults,” reads the report. “Hazardous bathrooms, steep staircases, narrow halls and doorways, and dated electrical systems may pose hazards to those with difficulty getting around, even among units otherwise deemed ‘adequate’ in the American Housing Survey.” In fact, each year one in three adults aged 65 or older falls and more than half of these falls occur at home.

Currently, 7 percent of Medicare beneficiaries over the age of 85 live in community housing with supportive services, like assisted living. 15 percent of seniors in the same age group live in a nursing home or other long-term care facility, and 78 percent live in a traditional community. The authors of the report advocate that more supportive housing options and programs to help make options affordable to all seniors will be needed to meet the rising demand over the coming years. The report also urges that the Home and Community-Based Services Medicaid waiver program be expanded and other programs be implemented to help low income seniors have access to safe and affordable housing.

Read the full report: Housing an Aging Population, Are We Prepared?

Researchers examine the key issues surrounding entitlement program policy discussions and point out current societal shortcomings, such as the general lack of financial planning for long term services and supports, which must be considered when revising any of the plans.

The Kaiser Family Foundation and Georgetown University have released a policy brief that advocates for a holistic perspective on entitlement programs. “As policymakers consider options for decreasing spending on entitlement programs, it is important to consider the overall and interrelated effects of policy proposals on seniors’ ability to pay for needed health care and essential living expenses,” said the authors of the brief. The brief goes on to expand upon the various issues that must be considered when revising policy for any entitlement program. 

The issues include seniors’ heavy reliance on Social Security, the high proportion of seniors’ budgets that are spent on medical costs, the need for long term services and supports, and the inability of many seniors to pay for long term care.

The brief points out that only 10 percent of seniors have long term care insurance, while two-thirds of those over age 65 will need some form of long-term services and supports, such as assisted living, during their lifetime. Low- and middle- income seniors frequently deplete their savings and rely on Medicaid. In fact, one-third of Medicaid spending covers long-term services and supports.  If no changes are made, these costs are likely to grow. “Many seniors will continue to face a risk of financially catastrophic long‐term care costs,” reads the report. “If current trends continue, most seniors in the future will not be insured for long‐term care costs and face the risk of high out‐of‐pocket costs and unmet needs.”

Read the full issue brief: Key Issues in Understanding the Economic and Health Security of Current and Future Generations of Seniors.