Genworth 2014 Annual Cost of Care Survey: At Home Care Costs Increase in Indiana

RICHMOND, Va., April 24, 2014 /PRNewswire/ — In its 11th year, the Genworth
(NYSE: GNW) 2014 Cost of Care Survey shows the cost to receive long term care
services at home in Indiana through a home health aide increased over the past
five years. On a national level, the survey shows a dramatic increase in
facility based care, such as an assisted living facility or nursing home, while
the cost to receive care at home through homemaker services or a home health
aide is rising at a moderate growth rate. This is good news for consumers as
almost three quarters of people needing long term care prefer receiving it in
their homes, according to Genworth’s extensive claims data (Long term care
claims Experience Data for Genworth Life Insurance Company and affiliates –
December 1974-June 30, 2013).

“Over the past 40 years, Genworth has worked hard to educate today’s families on
the need to plan for the significant financial risk that long term care could
impose on them,” said Tom McInerney, Genworth president and chief executive
officer. “With the number of Americans over 65 projected to double over the next
40 years, continued increases in the cost of care and limited public financing
options available to cover these costs, long term care is one of the most
important social issues of our time.”

The Cost of Long Term Care

Nationally, the 2014 median hourly cost for the services of a homemaker or home
health aide hired from a home care agency is $19 and $19.75 respectively.
Homemaker costs nationally have risen annually 1.2 percent on average over the
past five years and home health aide services have risen, on average, 1.32
percent annually over the past five years. In Indiana, the median hourly cost of
homemaker services is $18 and the median hourly cost of home health aide
services is $20. The median hourly cost for homemaker services in Indiana has
increased 0.6 percent annually over the past five years, and the hourly cost of
home health aide services has increased 0.7 percent over the same period of
time.

By comparison, the median annual cost for care in an assisted living facility is
$42,000 nationally and $44,685 in Indiana. The national yearly cost of assisted
living has increased 4.29 percent annually over the past five years and
increased 5.2 percent over the same time period in Indiana. The comparable cost
for a private nursing home room rose 4.19 percent annualized over the past five
years to $87,600 nationally, and increased 3.8 percent over the past five years
to $85,775 in Indiana.

Bob Bua, Genworth vice president and business leader of its wholly owned
subsidiary, CareScout, explains, “Since we first launched this study, we have
seen long term care costs march higher year after year. If you live to 65, there
is a 70 percent chanceyou will need some form of long term care services so
creating a sound financial plan for managing future long term care costs is very
important.”

Drivers of Rising Long Term Care Costs

Long term care costs are being driven up by a combination of economic and market
factors. As a result, these associated costs are being passed along to
consumers.

Based on Genworth’s claims experience, the average length of a long term care
claim is about three years. Assuming three years of in-home care provided by a
home health aide, the national cost of care would be nearly $136,000. In an
assisted living facility, this cost would approach $143,000, nationally. In a
private nursing home room, this national cost would exceed $260,000. At a three
percent inflation rate, in 25 years, when many baby boomers will require long
term care services, national costs for an average length of stay in a private
nursing home facility will be about $840,000, a huge expense that most Americans
cannot afford.

“It is well known that most Americans do not have traditional pensions and many
have saved far too little in their 401(k) plans or other products. For the vast
majority of Americans, long term care costs are not covered by Medicare and
Medicaid provides coverage only after life long savings have been nearly
exhausted. Given these factors, private long term care insurance remains one of
the most effective ways for Americans to prepare for this potentially
significant expense later in life,” McInerney said.

Get Back to Basics: Create a Long Term Care Plan

Long term care planning is about more than just cost and it requires difficult
family decisions and sacrifices. Planning today can save consumers from facing a
crisis tomorrow. Having the right talk, the right way, at the right time, can
ease the emotional and legal pressures of planning for long term care needs.

Genworth recommends the following tips regarding long term care:

— Determine what’s important. Take time to carefully consider your needs,
get educated and talk with your family so you can decide on the most
appropriate option for your long term care needs.
— Get educated. As the long term care landscape continues evolving and
changing, stay up-to-date on the options available and determine what
works best for your holistic retirement plan.
— Plan. Now that you have a better idea of what you want, how much it
costs and the key issues, get prepared with a basic plan. Outline your
objectives, meet your goals and keep communicating with family.
— Continue the conversation. Look for natural opportunities to talk with
family and financial professionals about your plan. Don’t try to tackle
too many issues at once. It may be easier to have a series of
conversations over time. Visit Genworth’s Let’s Talk website to find
tips on how to have a Long Term Care conversation.
Consumers can find out what the cost of care is in 440 regions across all 50
states, including 12 in Indiana by visiting Genworth’s Cost of Care website.

Genworth can also be found online through their social media platforms. Find
them on Facebook at: https://www.facebook.com/pages/Genworth/165752860178415.
Watch Genworth informational videos and commercials at:
http://www.youtube.com/genworthfinancialtv. To contact a Genworth
Representative, please visit: https://www.genworth.com/contact-us.html or call
1-888-GENWORTH (1-888-436-9678).

About the Study

Genworth’s Cost of Care Survey is the most comprehensive study of its kind,
covering nearly 15,000 long term care providers nationwide. The survey includes
440 regions which include covering all Metropolitan Statistical Areas defined by
the 2013 Office of Management and Budget. Genworth annually surveys the cost of
long term care across the U.S. to help Americans plan for the potential cost
associated with the various types of long term care available in their preferred
location and setting. CareScout®, part of the Genworth Financial family of
companies, has conducted the survey since 2004. Located in Waltham,
Massachusetts, CareScout has specialized in helping families find long term care
providers nationwide since 1997. Genworth’s 2014 Cost of Care Survey was
conducted during January and February 2014.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding
company dedicated to helping people secure their financial lives, families and
futures. Genworth has leadership positions in offerings that assist consumers in
protecting themselves, investing for the future and planning for retirement —
including life insurance, long term care insurance, and financial protection
coverages — and mortgage insurance that helps consumers achieve home ownership
while assisting lenders in managing their risk and capital.

Genworth operates through three divisions: U.S. Life Insurance, which includes
life insurance, long term care insurance and fixed annuities; Global Mortgage
Insurance, containing U.S. Mortgage Insurance and International Mortgage
Insurance segments; and the Corporate and Other division, which includes the
International Protection and Runoff segments. Products and services are offered
through financial intermediaries, advisors, independent distributors and sales
specialists. Genworth, headquartered in Richmond, Virginia, traces its roots
back to 1871 and became a public company in 2004. For more information, visit
genworth.com. From time to time, Genworth releases important information via
postings on its corporate website. Accordingly, investors and other interested
parties are encouraged to enroll to receive automatic email alerts and Really
Simple Syndication (RSS) feeds regarding new postings. Enrollment information is
found under the “Investors” section of genworth.com.

SOURCE Genworth Financial, Inc.

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