Aging isn’t just hard on your health — it can be hard on your wallet too. Senior care, according to various estimates, can cost more than $500,000 per lifetime.
With potential bills of this scale, how can you begin budgeting? And importantly, how can you ensure the well-being of yourself or your loved one in assisted living? Let’s walk through the basics.
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What Is Assisted Living?
Assisted living is often near the beginning of a senior care journey and, therefore, the start of many senior care costs.
These communities are designed for seniors who only need light to moderate assistance with activities of daily living, such as bathing and dressing, but who aren’t quite able to live independently or receive home care. They may have trouble cooking nutritious meals for themselves, arranging or providing transportation or managing their own finances.
Commonly, residents in these communities may also have a chronic condition, such as high blood pressure or Alzheimer’s disease. In fact, nearly 1 in 5 assisted living communities has a dedicated area for dementia care.
[SEE: The Advantages of Assisted Living.]
What Does an Assisted Living Community Offer?
With more than 30,000 assisted living communities nationwide, according to the National Center for Assisted Living, there’s no shortage of options. Assisted living may look like a basic shared room, or it could be as elaborate as a well-decorated private room in a structure with several wings.
Assisted living communities also offer an array of senior amenities, says Sue Johansen, a San Francisco-based executive vice president with A Place for Mom, a senior referral service.
Basic assisted living amenities include:
— Laundry and linen services.
— Three meals per day, typically served restaurant-style.
— Basic housekeeping services.
— Help with activities of daily living.
Other amenities might include:
— Pets allowed in the residence.
— Transportation.
— Social activities.
“An important amenity that not all facilities offer is a medical overlay to basic services — that is, enhanced licensure to provide extra health care for residents,” adds Grace Ferri, chief marketing officer for United Hebrew of New Rochelle, a continuing care retirement community in Westchester County, New York.
This amenity allows the senior to remain in one community, even if they should eventually need more advanced care as their medical needs change.
Some communities also incorporate technology to enhance the care they provide. CarePredict, for instance, tracks residents’ daily health, explains Steve Jorgenson, CEO and president of Solterra Companies in Scottsdale, Arizona. Communities may also use technology to communicate the health status of residents to their loved ones.
[READ: How Long Does It Take to Get Into Assisted Living.]
Factors That Determine the Cost of Assisted Living
The two main factors that go into the price of assisted living are:
— How much assistance the individual requires.
— The types of amenities or luxury experiences the community is offering.
According to Johansen, prices in the assisted living space vary greatly based on available features and room options. Costs may also vary by zip code, city and state.
To get a handle on your potential budget, your best bet is to compare prices. There’s currently no comprehensive database for assisted living community costs through the Centers for Medicare and Medicaid Services or Medicare.gov, so you may need to ask for a quote at your top communites. Another option is to visit a commercial site like Genworth Financial to compare senior care costs in your geographical area.
When you’re deciding on a community, Johansen says specific questions to ask about pricing include:
— How much does pricing vary by floor plan?
— Are there pricing tiers structured around the level of care?
— Does the price increase annually?
Keep in mind too: Staying informed about the cost of assisted living can help you realistically anticipate other potential expenses, such as the cost of nursing homes, which are often the next step in care.
[READ: Understanding Long-Term Care Insurance and Medicare Coverage for Assisted Living]
How Much Does Assisted Living Cost?
Assisted living costs are typically paid per month, but, as mentioned, the difference between the costs is huge depending on where you live. Market rates start at about $6,000 per month on the East Coast, Ferri notes, and the national average floats around $4,500 per month, according to the American Health Care Association and the NCAL. Nursing homes, on the other hand, cost an average of $7,800 to $9,000 monthly, making assisted living, when medically appropriate, a more economic option.
If these potential expenses have you considering moving your loved one to a lower-cost-of-living area for their care, check in with your loved one — and family — first. Discuss which family member is most likely and willing to visit them often or if it might be worth having your senior relocate to that family member’s area.
Ferri advises future residents to be aware that the nicest community may not always be the one with the highest price tag. Due to post-pandemic inflation, rents are now higher. So, newer, more luxurious communities may offer affordable prices in order to fill beds to pay their rent.
Paying For Assisted Living
The costs of elderly care can be an enormous burden on seniors and their families. With the median stay at about 22 months, according to AHCA/NCAL, and that average cost of $4,500 per month, assisted living costs could come out to $99,000 annually.
You might be asking: Does Medicare pay for assisted living? Unfortunately, no. Medicare does not cover the costs of long-term care, including assisted living, nursing homes or long-term care facilities. However, nearly 18% of residents use Medicaid to cover some assisted living costs.
Being realistic about the cost versus the benefit of assisted living services is key. Sure, you could cut your work hours to take care of your aging parent, and that may be the best option. But some seniors benefit from having on-site medical staff, socialization and three nutritious meals every day. Having the peace of mind that they are taken care of while you don’t have to put your career on hold may be priceless.
Jorgenson recommends that you research all the available payment options, including:
— Financing.
— Medicaid.
— Long-term care insurance.
— Private health insurance.
— Social programs, such as PACE, SHIP, Veterans Affairs or Social Security Disability Insurance.
Johansen also suggests consulting with an advisor about how to pay the hefty costs of assisted living. A trust attorney can also serve as a great resource.
Finding the Right Fit
In addition to budgeting, consider what community would be best-suited for your loved one. Doing so can help you narrow your options and home in on potential costs.
For instance, what are your loved one’s social and medical needs? Will the community be able to accommodate any religious or cultural practices important to them?
The interior design and aesthetic of an assisted living community should also be lower on your priority list when selecting an assisted living location. Although the community should be clean and hygienic, having plush carpets and ornate chandeliers says little about the care the community provides and should not be the sole item on your checklist. Ferri says to ask: Are the staff members kind? Do current residents and their families have good things to say?
“Once you identify what’s most important — whether food and fun or friendships and wellness — you can more easily discover which particular community will be the best lifestyle fit,” Johansen says.
Touring communities is a critical part of this decision-making process. Johansen recommends that families tour at least two communities to have some comparison between the offerings at each. And, because assisted living communities may have tiered levels of care that allow seniors to age in place, Jorgenson recommends asking about health care accommodations.
Like in any industry, Johansen adds, “becoming a knowledgeable customer is the best way to get the most value. Being as prepared and informed as possible can help families avoid surprise costs and sticker shock.”
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The Cost of Assisted Living: A Comprehensive Guide to Senior Care Expenses originally appeared on usnews.com
Update 06/22/23: This story was previously published at an earlier date and has been updated with new information.
