Many people rely on a combination of social security, pensions and the sale of assets, such as housing, to cover the costs of assisted living. Most people pay for assisted living with current income from social security and pensions, along with the use of their savings, including income from the sale of a home. Long-term care insurance is increasingly being used to offset the cost of assisted living. Some consumers convert life insurance policies into loans, and others have family members who help pay a portion of the monthly cost. Most older people and their families initially pay for assisted living with funds from savings, pensions and investments, and from 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 make a budget. Most families cover the costs of assisted living with 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. When paying for assisted living, the responsibility often falls on older people and their families. While many turn to personal savings, Social Security benefits or pensions, there are also creative strategies, such as taking advantage of real estate, life insurance or long-term care policies. Some families even share costs between relatives to ease the financial burden.
Medicaid doesn't cover room and board as part of the costs of assisted living. However, many states offer Medicaid exemption programs that can help defray the costs of assisted living. These are called Medicaid home and community-based services (HCBS) exemptions or Medicaid 1915 (c) exemptions. Financial assistance programs, including Medicaid, may be available to people with limited resources, although not all assisted living communities participate in these programs.
In fact, the costs of assisted living can completely overwhelm the personal savings accounts of older people and their families. Because Medicaid is administered by individual states, the benefits covered by assisted living exemptions may vary. While it can afford the medically necessary services provided to eligible residents of assisted living communities, Medicare will not pay for assisted living care or long-term nursing homes or foster care. This state agency offers information, assistance and programming to help Floridians access long-term care services.
Residents generally pay directly for cable TV, Internet and phone service in their apartment (although more and more communities have free WIFI throughout the building). But if your loved one is open to the idea, having a roommate can make assisted living much more affordable. For people over 65, Florida Medicaid offers limited long-term care assistance, and qualification can be a long and complex process. Evaluating costs and services is critical to selecting the best care option for the elderly that fits your needs or those of your loved one.
When it is clear that some type of assistance is needed to keep up with daily life, it is important to analyze finances to pay for assisted living. Although the all-inclusive system has a simple fee structure, keep in mind that a resident who is very independent but who enjoys the community's social and gastronomic services will pay the same monthly fee as a resident who needs daily help to bathe and dress and who needs companions to go to programs and activities. In an all-inclusive rate system, there is a total monthly fee for lodging, meals, activities, cleaning, laundry and transportation AND personal care assistance for dressing, bathing and other activities of daily living. Therefore, ASHA focuses primarily on legislative and regulatory advocacy, research and educational opportunities, and networking for living senior executives.
Because Medicaid is designed for low-income people, it's understandable that older adults who have Medicaid have trouble paying for the room and board portion of assisted living expenses.
