North Carolina Seeing Increasing Demand and Growing Cost for LTC

North Carolina has become a destination state attracting people from other parts of the country for the weather, affordable home prices, and much more. North Carolina was the ninth largest state in the 2020 census, up from 10th a decade ago. 

No doubt North Carolina is a popular place to live. Low cost of living, major population centers with top medical services, with breathtaking mountain views, and beautiful coastlines that are easy on the eyes. Plus, the state has culture, history, professional and college sports, and great weather.

The state is also a growing retirement location for many people, and the demographics point to that fact. Over 30% of North Carolina's population is aged 55 and over. The next group, ages 35 to 54, represents 25.25% of the population. Only 22.77% of the state's population falls into adults 18.34. 

The data suggests a population getting older and not many younger people to fill the caregiving role for all those who will need long-term health care in the decades ahead.

Care Providers Preparing for Increasing Demand

Amada Senior Care is one of the leading in-home health agencies in the country. Like most long-term care providers, they are preparing for the greater demand for services. 

Traci Bissett, who runs Amada Senior Care for Eastern North Carolina says the state is definitely getting older. She points out to the migration of many people, especially seniors, from other states. Bissett says that the number of North Carolinians over age 65 is expected to increase by 61% by the year 2038.

"As the demand for long-term health care grows, the cost of care will also grow. When working with the families of our senior clients, we see their shocked reaction to the cost of care. We hope to educate family members to use this experience to prepare for their long-term care expenses," Bissett explained.

According to the LTC NEWS Cost of Care Calculator, the state median cost of home health care services now averages $3,995 a month based on a 44 hour week. By the year 2041, the average median cost is expected to be $7,432 a month.

Brad and Gwen Smith, from Amada's Charlotte office, anticipate long-term health care costs and demand will increase significantly over the next several years.

"Here in Charlotte, many home care agencies have a waiting list for client start dates because there are more care needs than there are care providers. Although our prices have remained steady, we have seen our competitors raise their rates for care over the past year, they said.

The aging population will also put additional demand for adult day care centers, assisted living facilities, memory care facilities, and nursing homes. The costs will reflect the rising demand for services.

For example, according to the LTC NEWS Cost of Care Calculator, the average base cost of an assisted living facility in Greensboro, NC, runs $4,883 a month. Additional charges will be assessed based on the number of services a person may require. However, by the year 2041, this average base cost is expected to run $9,636 a month. These costs would significantly impact the finances of families unprepared for long-term care.

Location Makes a Big Difference in Care Costs

However, location makes a big difference. The average cost in Rocky Mount, NC, is much lower. You see the same for other long-term care services. If you are thinking of relocating, one of the considerations should be the cost of long-term care and your resources to pay for these costs.

North Carolina is one of 45 states that offer Partnership Long-Term Care Insurance policies that offer dollar-for-dollar asset protection. North Carolina reciprocates with other states, so North Carolina will honor the additional asset protection if you already have a Partnership LTC policy from another state. 

The best time to obtain Long-Term Care Insurance coverage is when you are in your 40s or 50s. No matter the age, your relatively good health today gives you the ability to get a policy as policies are medically underwritten.

LTC Insurance Helps but Premiums Vary Over 100% Between Companies

Keep in mind that premiums can vary over 100% between insurance companies. Be sure to seek the help of a licensed and experienced LTC Insurance specialist to help you navigate the many companies and options that are available. Find a trusted and qualified specialist by clicking here.

Aging is happening everywhere, not just in North Carolina. Many people, as they approach retirement, start looking to relocate. North Carolina is one of the more popular destinations. No matter where you live, planning for the future changes in your health, body, and mind is a critical part of a retirement plan.