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To: NOW who wrote (48745)	3/27/2006 6:55:41 PM
From: Crimson Ghost	Respond to of 116555

More evidence of "low inflation" Assisted living, home care costs climb: study By Kim Dixon 1 hour, 59 minutes ago CHICAGO (Reuters) - Older Americans in need of care face sharp spikes in the cost of increasingly popular assisted living quarters and home health aides, according to a study. ADVERTISEMENT The average price tag for a private one-bedroom unit in an assisted living facility rose 7 percent in 2006 to about $33,000 per year, compared with a 5 percent rise in 2005, according to a survey by insurer Genworth Financial Inc.. The average hourly rate for most home health aides climbed 19 percent to $22.15 per hour, compared with a 2 percent rise in 2005, the study found. The average cost for a private room in a nursing home, by contrast, rose 2 percent to about $71,000 in 2006, after rising 6 percent in 2005. The increased costs reflect the growing popularity of home health care and assisted living centers, which typically provide meals, help with everyday tasks and provide some medical care. Assisted living centers cost less than nursing homes and attract patients not needing the more greater medical treatment offered by nursing homes. "Traditionally, the only option was a nursing home. Now these home health agencies and assisted living facilities are much more prevalent," said Buck Stinson, president of Genworth's long-term care business. "People with a broken hip or mild cognitive impairment can go to these intermediate facilities." The survey of 9,000 nursing homes, assisted living facilities and home care providers was conducted in January and February of 2006. The assisted living industry is rebounding after struggling with a spate of bankruptcies in the 1990s, due to overcapacity and sagging demand. Living choices facing the elderly will move to the forefront soon, with nearly 77 million baby boomers heading into retirement this year. The majority of patients who use assisted living centers pay out of their own pockets and through long-term care insurance. Medicare, the federal health insurance plan for the elderly, does not provide much support. Publicly traded assisted living companies include Sunrise Senior Living Inc., Capital Senior Living Corp. and Brookdale Senior Living Inc..