A recent Cost of Care Survey found that the median cost of assisted living facilities is $5,350 per month. While this is a substantial amount of money the breadth of senior care benefits provided by most assisted living communities warrant such monthly charges.
Median Stay – 22 Months
Applying these averages means it would require more than $117,700 to afford the median stay. Longer stays, assisted living in a more expensive part of the country, or prime locations such as waterfront or vacation settings could result in proportionally higher prices.
Costs for assisted living for couples are often based on individual living situations. For instance, if one spouse resides in assisted living and pays $5,350 per month while the other maintains the family home, costs can quickly become difficult to sustain. In cases like this it may be more cost-effective for both spouses to live in assisted living or for both to remain at home and pay for in-home care for the spouse who needs it.
If a couple is living together in assisted living, they may be able to share the rent cost. However, depending on the services each requires, additional fees may vary widely.
Factors That Determine The Cost of Assisted Living
Three main factors determine the price of assisted living:
• How much assistance the individual requires.
• The types of amenities or luxury experiences they request.
• The location of the facility.
Asking The Right Questions About Assisted Living Pricing
When considering an assisted living community, important questions to ask about pricing include:
• Are there upfront fees, such as deposits or community or move-in fees?
• Which services and activities are included, and which are additional?
• Are there pricing tiers structured around the level of care?
• How much does pricing vary by room type or floor plan?
• Are there annual pricing increases, and how much are the increases?
• What notice do residents need to provide if they choose to move out?
• Can residents stay indefinitely, or would they be asked to move to a community that offers a higher level of care?
• Are there any discounts available for payments in advance?
What Expenses Are Covered in Assisted Living
• Room and board
• Housekeeping services
• Social, educational, and physical activities at the facility
Depending on the community, costs may also include assistance with activities of daily living, such as:
• Medication management
• Dressing
• Toileting
• Hygiene and bathing
• Transportation (to doctor appointments, grocery stores, and other destinations)
• Laundry services
What Costs Are Not Included in Assisted Living
• Phone and internet services.
• Personal supplies, such as incontinence care and toiletries
• Some personal grooming, such as hairstyling or salon-like services, including nail care.
Paying for Assisted Living
There are several ways to pay for your or for a loved one’s residence in an assisted living community. Working with a financial advisor, an attorney who specializes in elder law, and/or a geriatric care manager can be helpful in determining how best to meet the costs of assisted living.
In addition to seeking professional help, exploring the following options may lead to an appropriate solution depending on your financial situation and resources.
Personal Income and Savings: Using personal income or savings is the simplest route, but it can be challenging due to the high costs of assisted living.
Long-Term Care Insurance: Long-term care insurance often covers assisted living costs, though it depends on the specifics of the policy.
Veteran’s Benefits: The Department of Veterans Affairs offers assistance programs for older veterans and their spouses.
Home Equity: Selling a home or using a reverse mortgage can provide funds for assisted living.
Life Insurance Policy: Selling a life insurance policy, known as a life settlement, can provide funds, though it may affect the financial future of any heirs.
Hybrid Insurance Policies: For instance, a life insurance policy with a long-term care rider. A benefit of these plans is that you can access the money you put in or leave it to your heirs if you never end up needing long-term care.
Family Support: Financial support from family members can help cover some of the costs.
Medicaid: For those who qualify, Medicaid can help offset assisted living costs.
Annuities and Investments: Pensions, annuities, and other investments can be used to pay for assisted living.
Medicare Advantage: Offered through private insurers, Medicare Advantage may help cover some custodial care costs, but such benefits vary widely depending on the specific plan.
Specifically, Medicare does not cover custodial (or non-medical) care, such as bathing and other activities of daily living, which are the very tasks many people need help with in assisted living.
Renting Out Your Home: If you own a home but are moving into assisted living, renting out your home can provide a steady income stream to help cover the costs.
Bridge Loans: These short-term loans can help cover the costs of assisted living until other funds become available, such as the sale of a home.
Senior Citizen Programs: Some local and state programs offer financial assistance or subsidies for seniors in need of assisted living.
Retirement Accounts: Utilizing pensions, 401(k)s, IRAs, and other retirement accounts can help fund assisted living expenses.
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