Lincoln Financial Group Annual “What Care Costs” Study Indicates Continued Rise in Long-Term Care Costs in State-by-State Comparison

What Care Costs website provides interactive maps for consumers and
financial advisors to help with long-term care planning by analyzing
average costs for types of care across the nation

RADNOR, Pa.–(BUSINESS WIRE)–Lincoln Financial Group’s (NYSE:LNC) annual What Care Costs study
finds that national averages for long-term care expenses range from
$47,840 for a full-time home health aide to $102,911 for a private room
in a nursing home, which can differ significantly by state. The study
findings, including state-by-state details, are available to consumers
and advisors through an interactive website, www.whatcarecosts.com/Lincoln.

“Today, more than one in two Americans turning 65 will need some form of
long-term care in their lifetime and the total number needing care is
expected to more than double by 2050^1,2,” said Andrew
Bucklee, senior vice president and head of insurance solutions
distribution for Lincoln Financial Distributors. “Those services are
often attached to some significant costs that can impact retirement
plans, savings and assets, and, importantly, the level of care one
receives. That’s why it’s so important that people speak with their
family and their financial advisor about their long-term care
preferences and put a plan in place. Lincoln’s What Care Costs
website can be a great starting point for these conversations and
provide some clarity around the potential costs associated with
long-term care.”

The cost of long-term care services can vary greatly depending on of the
type of care needed and where a person lives. The state averages for the
cost of care in a facility, which include semi-private and private rooms
in skilled nursing and assisted living facilities, range from $37,000 to
nearly $200,000 per year. An individual needing 40 hours of home health
care per week today can expect to pay from $36,000 to $64,000 this year.

The total lifetime cost of care can also vary greatly due to the length
of need and the availability of care provided by family members and
friends. Based on current projections, those age 65 who will be in need
of long-term care services in the future will require an average of 3.9
years of support. Of those who develop a disability, 27 percent are
expected to require five years or more of care services¹.

For care beginning in the home, the average national fee for a home
health aide today is approximately $23 per hour, up 2 percent from the
prior year. For instances requiring the medical skills of a registered
nurse, the national average for a home visit is $139.

Most and Least Expensive States for a Home Health Aide (hourly)

Most Expensive

Least Expensive

Minnesota: $31

Alabama: $17

North Dakota: $29

Louisiana: $19

Alaska: $28

West Virginia $19

For those who received care in a skilled nursing facility, the national
average for a semi-private room is $89,305 annually, up from $87,000
last year, while a private room costs approximately $102,900, up from
$99,600. A studio apartment in an assisted living facility averages
approximately $4,000 per month, a four percent increase from last year.

Most and Least Expensive States for a Semi-Private Skilled Nursing Home (annually)

Most Expensive

Least Expensive

Alaska: $167,535

Texas: $56,210

Connecticut: $155,490

Missouri $59,860

Massachusetts: $143,080

Louisiana: $60,955

Most and Least Expensive States for a Studio Apartment in an Assisted Living Facility (annually)

Most Expensive

Least Expensive

Massachusetts: $68,088

Louisiana: $36,612

Alaska: $67,608

Mississippi $37,836

New Jersey: $67,248

Alabama: $39,096

By 2050 when the population of individuals 65+ years of age will have
doubled and long-term care services are in even greater demand,
Lincoln’s What Care Cost website projects these expenses to be
significantly higher due to inflation. Home Health Aide national
averages are expected to reach $48 by then and registered nurse visits
are projected to reach $413. A semi-private room in a skilled nursing
facility will reach $206,590 and a studio apartment in an assisted
living facility will be $106,800.

To help financial advisors and their clients plan the financing of their
potential long-term care expenses, Lincoln Financial provides
whatcarecosts.com as a searchable database of long-term-care cost
information including in-home, skilled nursing facilities, and assisted
living for states and metropolitan areas nationwide. The data can be
sorted by type of care and geography. In addition, the impact of
inflation on these costs may be modeled.

For more information visit www.whatcarecosts.com/Lincoln.
In the upper right corner, enter the code ‘Lincoln’

About the What Care Costs Study

What Care Costs survey was designed and implemented by LTCG, the
nation’s leader in long-term care administration services. Each year
LTCG surveys thousands of Skilled Nursing Home, Home Health Care and
Assisted Living Facility providers to collect cost of care data. The
cost of care averages are calculated from over 30,000 different
providers at the national, state and MSA (metropolitan statistical area)
level.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help empower
people to take charge of their financial lives with confidence and
optimism. Today, more than 17 million customers trust our retirement,
insurance and wealth protection expertise to help address their
lifestyle, savings and income goals, as well as to guard against
long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln
Financial Group is the marketing name for Lincoln National Corporation
(NYSE:LNC) and its affiliates. The company had $229 billion in assets
under management as of December 31, 2016. Learn more at: www.LincolnFinancial.com.
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1. Department of Health and Human Services, Long-Term
Services and Supports for Older Americans: Risk and Financing,
February 2016

2. Bipartisan Policy Center, America’s
Long-Term Care Crisis: Challenges in Financing and Delivery,
April 2014

Contacts

Media Contacts:
Lincoln Financial Distributors:
Stephanie
Jacobson, 484-583-2499, stephanie.jacobson@lfd.com
or
Lincoln
Financial Group:
Jay Russo, 860-466-1324, jay.russo@lfg.com