Assisted Living Costs

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    When you are looking into finding an assisted living home for a loved one, the cost is most likely a deciding factor in when you can go and what you can afford.

    Depending on the level of care that your loved one needs, assisted living facilities can be much more cost-effective than long-term in-home care or even a nursing home. The cost of assisted living will vary from state to state, and different assisted living locations will give you different prices. Also, the level of care that your loved one needs, will also be a deciding factor in the cost. For example, assisted living in California will be more expensive than the assisted living costs in Tennessee, as the overall cost of living is higher in California. We have helped some clients move to a different state so that senior care will be more affordable. Contact us, so we can discuss your senior living needs, and the budget. The lifestyle in a senior living community can vary with the pricing from city to city and from location to location. Some of the most expensive locations are Los Angeles and New York. There is a variety of apartments and the details that each home has can greatly affect the price of an assisted living community. Loved ones can expect a different experience from assisted living than with nursing homes and the offerings of a higher level of lifestyle.

    The Cost of Assisted Living

    The monthly rates assisted living facilities charge will be different from location to location, what amenities are offered, and what level of care is required, but the range is from $3,000 to $6,000 on average, according to Genworth’s Cost of Care Survey. The cost of assisted living can seem very expensive, but when you compare it to the average cost of a nursing home, which is $5,000 to $10,000 per month, or in-home care is $4,000 per month for 40 hours of care per week, assisted living is more affordable and much better value for your money if your loved one doesn’t need full-time medical supervision. For seniors with dementia, the wellness approach will still promote independence. But handle the challenges of adults with Alzheimer’s and dementia. Nursing care will handle the care needs of seniors but, they do not offer the same level of lifestyle and amenities that you would get with assisted living.

    Other Factors Affecting Assisted Living Costs

    There are many different factors for assisted living costs. Location is important, as some states are more expensive than others. Also, the type of care that your loved one needs, will affect the cost. Adding memory care to assisted living will increase the cost, as memory care is expensive. Loving Assisted Living, we will help you find the home that is best suited to you and your loved one. Floor Plans  Just like when you buy a house, square footage, number of rooms, bathrooms, location inside the community (floor, proximity to amenities, and/or elevator), view, and availability are measured in the price point. Be sure to ask about all of your choices, since most assisted living facilities have many different floor plans to help control the monthly cost of assisted living better. If your loved one is interested in having a roommate, sharing space — and the resulting costs — may also be a choice. Some residential centers provide two-bedroom apartment-style living that can cut costs from 10% to 20% or more a month. The opportunity to have more room and a social partner, along with the lower cost, can make shared living a better option for some residents.

    The staff-to-resident ratio

    The staff-to-resident ratio of an assisted living facility plays a major role in the amount of attention each resident gets. And while a well-personed facility is ideal to ensure greater attention to the needs of your loved one, that concentrated attention is likely to increase the monthly cost of assisted living. Location It is common to choose an assisted living facility in or near a current zip code. There is little need to change doctors, alter shopping habits, and do other activities that revolve around local establishments or groups if seniors want an assisted living facility in an area where they have lived for years. But the amount of monthly treatment can cost depending on where your loved one stays. Moving towns— or even states — can have a big impact. Assisted living facilities in urban areas typically cost more than their rural counterparts due to the increased valuation of real estate and business costs. As in California, it can be more expensive than in most other states. Relocating even an hour away from a major metropolitan area will result in a cost drop of up to 25 percent. Swapping states can also save large net sums. Moving from Illinois, for example, where the average monthly cost of assisted living is $3,898 for its sister, Iowa, can save $380 a month. A little further north, Minnesota’s monthly cost shaves $698 off the Illinois average cost. When you move in  Even though they are in the treatment sector, assisted living facilities are still businesses. This means that they are dealing with the same financial pressure as supermarkets, restaurants, and other firms. Residences can negotiate price breaks by the end of the month, quarter, or year to meet budgetary demands. If your family is not constrained by a time limit, waiting to transfer a loved one to an assisted care group may mean either a slightly lower monthly payment or financial benefits such as waiving the “community charge” (which can be equal to rent for several months) or transferring credit. When you decide what’s best for your loved one and the numbers count, it’s important to know all of the payment options that are available to you. It’s easy to get upset when your loved one’s comfort and safety depend on your decision. It is best to have an action plan that incorporates any tool you can before looking at any of the possible residential care facilities. Here are some of the best ways you can, without breaking the bank, “spare no expense.”

    Who Pays For Assisted Living?

    Who pays for assisted living? Generally, it is paid for by the family, as most assisted living expenses are not covered by insurance. Assisted living is paid out of pocket, meaning you will have to pay for it yourself, as the government with Medicaid will only pay a portion, and not all assisted living communities accept Medicaid. Assisted living costs can be very expensive, depending on the type of care that your loved one needs. Memory care is more expensive than assisted living.

    Ways to Pay for Assisted Living

    While the cost of assisted living varies significantly and may seem daunting at times, there are several ways to circumvent the bulk of this financial burden.
    1. Veteran’s Benefits Veteran’s benefits cover residential care in various circumstances:
    • If your loved one or his partner has service-related injuries or disabilities, benefits may be extended to the cost of assisted living.
    • Support and attendance benefits are available to any veteran (or spouse) with disabilities whose compensation is less than the amount given.
    To receive the benefits your loved one is entitled to, you will need to go through the Veteran’s Administration, which can be a time-consuming, complicated process. Therefore, consider working with a geriatric consultant who understands the ins and outs of the program and can help simplify the process of applying for benefits, and also consult with an Elder Care attorney for some expert advice. Senior living facilities also offer financial concierge services which will direct you through the benefits application process.
    1. Life insurance While most purchase life insurance with their beneficiaries in mind, if appropriate, policies can be extended to “living benefits.” Depending on the monthly premiums, age, and fitness of the policyholder, the company is likely to buy back 50-75 percent of its face value from the policy. Unless the policyholder is terminally ill, some plans will not provide “accelerated” or “working” incentives. While others will be much more flexible. If the insurance policy of your loved one does not permit living expenses, you still have options to consider. You may sell their policy to a third party, for example, in exchange for a “life settlement” or “senior settlement,” which usually consists of 50-75% of the policy’s value.
    2. Pooling Family Resources If you’re worried about living alone with your mom or dad, other family members might also be worried. Often, bringing everyone together to think about it helps with a solution to be found, such as pooling assets and swapping resources for a time. For example, if the majority of daily care is done by one or two siblings or family members, such as traveling to medical appointments, others with less flexible work schedules may contribute money instead. If there is a family home that nobody wants to sell yet, when the house is sold, siblings with available funds may pay for assisted living with a guarantee of repayment.
    3. Long-term care policies Consider yourself lucky if you or your loved one received care insurance. With assisted living care, long-term care insurance policies apply–all you need to know is how to claim the benefits. Some long-term care plans have a particularly defined incentive for home care nursing, depending on a mental or physical disability that can be used to pay for living assistance.
    4. Annuities If you have a nesting egg but are concerned about maintaining your money. An annuity might be a good option. When you buy an annuity you pay a sum upfront and receive regular checks back over a fixed period of time–usually the rest of your life. The annuity will help extend your savings and guarantee that you are receiving some reliable income at all times. Their big benefit is that you keep getting money regularly, even if your payment premium runs out. If you’re living for a really long time you’re going to get back more than you put in. The underwriter takes the risk that if you die early, you can live longer than the money lasts–and it makes an extra profit. Underwriters aren’t going into the annuity business expecting to lose money. But annuities can still be a better deal for you than merely depleting your bank account every year. Another advantage is that when you apply for government assistance, annuities aren’t completely counted as Medicaid property. The annuity income is treated as “cash,” but it is not the full amount initially used to purchase the annuity.
    5. A Reverse Mortgage If your loved one owns a home outright or is close to paying it off, the option you’re searching for might be a reverse mortgage. A reverse mortgage helps you to cash out your home equity interest either in full or in a series of monthly installments. The bank agrees on a value based on the value of the house, interest rates, the age of the borrower, and other factors and the loan balance rises gradually over time. (If a bank holds a household mortgage, it must be refunded before you can start receiving payments.) Even if the loan balance exceeds the value of the home, the borrower will stay in the home until death. The loan balance must be repaid upon death, which usually requires the home to be sold. Initially, reverse mortgages were developed to help widows stay in their homes after the breadwinner passed away. The Consumer Financial Protection Bureau recently, it was reported that fraud and foreclosures on reverse mortgages are on the rise.
    6. Renting Your Home The family home can be an important resource if only one parent currently lives, or if both parents need assistance in their daily lives. Selling is, of course, a choice, but Mom and Dad’s house is beloved by many families, and family members are not ready to make this decision.
    Use Medicaid for Assisted Living  If your loved one has little in savings or other financial assets and their income is small, they can qualify for Medicaid, which can help pay for assisted living. A fast, free, and non-binding Eligibility Test for Medicaid is available. In many states, Medicaid systems go by another name, so if you are not already familiar with it. It is a good idea to look up the name of your state’s program online (for example Arizona Long-Term Care System). Medicaid eligibility varies by state, but generally, to qualify, the applicant has to have less than $2,000 in assets outside their home and car. For any Medicare program to provide coverage of any kind, the treatment must meet the basic requirements:
    • Care must be “medically necessary,” that is to say ordered or recommended by a licensed physician or other approved medical provider. (Hoping to improve eligibility opportunities? Read our Medicare coverage guide.)
    • Care must be provided or administered by a medical provider participating in the Medicare system.
    Your next step is to find assisted living facilities accepting Medicaid. Few states offer a list of providers or a searchable database if you’re doing your own work, but these can be hard to find online. To help you out we have compiled a list of these resources to help you find central, assisted living facilities accepting Medicaid.

    Common Problems with Using Medicaid for Assisted Living

    You may run into some bumps along the road after you have done your preliminary research and found some assisted residential facilities that accept Medicaid. Understanding what they are is important for you so that you can prepare your solutions in advance. Sadly, many people encounter problems that qualify for the HCBS waiver of their state. A few common hurdles: 
    • HCBS exemptions can require a higher level of medical need than your senior would qualify for.
    • HCBS exemptions often have restricted slots, and even if you qualify from a medical or financial perspective. You can find yourself on the waiting list.
    • Potential solutions: 
    • See if your state offers programs for assisted living or independent living that are not Medicaid. (For example, Florida provides residential care financial assistance through its Preferred State Supplementation for Assisted Living program.) • Consider two or three of the other funding options mentioned above.
    • Consult with the manager of geriatric care who knows the resources in your field.
    Medicaid is a complicated system but it provides important long-term care services. Now that you have all of the basic information, you should be able to build a solid plan to get your loved one the best care possible. Be sure to make use of the many available resources!

    List of Amenities with Assisted Living

    Gardens Meals Pet therapy Transportation services Laundry services Skilled nursing Long term care Personal care Short term rehabilitation Physical therapy Occupational therapy Speech therapy Respite care Hospice care Palliative care Dietitian services Beauty salon Barber shop Housekeeping services Activity programs Outings Events Social activities Support groups

    Care Costs And Assisted Living

    Caregivers and home care costs can become too expensive when your loved one needs full-time care. Assisted living facilities can give the family and the loved ones comfort to know that they are living in an environment focused on seniors. The assisted living experience is not just bathing and dressing. All of the residents will have access to multiple different activities. All residents will receive a high level of benefits. When you are looking for a place for mom or dad, you will find that with assisted living. They will receive all of the support they need in an atmosphere that is positive. Choosing the right retirement property can be confusing and difficult to know what would be the right home for retirees. We can help you with a large selection of senior homes. We will find you the option that is best for your loved one. Choosing the right retirement home with all of the benefits that will work within your budget is how we can help you, contact us today, we are here for you.