Most people pay for assisted living with current income from social security and pensions, along with the use of savings, including income from the sale of a home. Long-term care insurance is increasingly being used to offset the cost of assisted living. Although Medicare doesn't cover assisted living, you'll continue to pay for all services approved under Parts A and B, such as hospitalizations, doctor visits, procedures and tests. Most older people and their families initially pay for assisted housing with savings, pensions and investments, and for programs such as veterans benefits and Social Security retirement benefits.
Older people who have little or no income often pay with publicly funded benefit programs, such as Medicaid and Supplemental Security Insurance (SSI). Regardless of how someone pays for assisted living, planning isn't just empowering. It helps ensure that money is available when it's needed and increases the chances that you'll have a variety of safe supportive care options. An important first step is to draw up a budget. Most families cover the costs of assisted living through private funds, which are usually a combination of Social Security benefits, pension payments, and savings and retirement accounts.
There are also some financial tools, retirement benefits for veterans, and government programs that can help cover the costs of assisted living. The cost of assisted living within a CCRC will depend on the type of CCRC residency contract, but as described above, it may be included in the monthly CCRC fee or may be offered at an additional cost. But if your loved one is willing to accept the idea, having a roommate can make the assisted living is much more affordable. To accurately compare the cost at different assisted living providers, it's important to understand how much the rate for additional care services could add to the total monthly cost at each location, rather than just comparing the base monthly rate.
A retirement community with continuing care, also commonly known as a CCRC or “life plan community,” often provides full and ongoing care for residents, ranging from independent living for those who are still healthy and active to assisted living, memory care and skilled nursing care. Some assisted living communities allow families to choose between paying an all-inclusive rental rate and paying for services individually based on needs. One of the main misconceptions among consumers is that Medicare will cover the cost of assisted living, but this is not the case. The Department of Veterans Affairs offers an aid and assistance benefit for eligible veterans and surviving spouses to help them pay for the cost of assisted living.
And while Medicaid doesn't pay for the room and board costs of assisted living, many states do offer exemption programs to help cover some personal care and other support services provided in an assisted living environment. Because it's not considered medically necessary, original Medicare (parts A and B) doesn't cover the costs of assisted living. As older adults or their families begin researching different assisted living facilities, it's inevitable that they'll see statistics from sources such as the Genworth Care Cost Calculator, which shows the average monthly cost of assisted living and other types of attention. If the above options aren't available to you, you're not unlucky when it comes to paying for a place in an assisted living community.
While health insurance may cover the cost of some medical services that residents receive in assisted living facilities, long-term care insurance and profits from the sale or delivery of life insurance policies can also be used to cover some of these costs. People looking for assisted living communities for themselves or for a member of their family should understand how pricing works. There are several ways to finance the costs of assisted living, from personal savings to Medicaid exemption programs. For those who qualify, a government-backed assisted living facility will provide services at a lower overall monthly cost.
The level of care is generally based on the amount of ADL (activities of daily living) that a resident needs regular assistance.
