Watching someone you care about become unable to live independently is one of life's most difficult experiences. But when you're also responsible for your loved one's care and safety, it can feel overwhelming, both emotionally and financially.
Assisted living facilities provide a safe and supportive environment for people who need help with daily activities, but they can be quite costly. It's important to carefully review and compare pricing structures and services offered at different facilities.
What is the average monthly cost of assisted living?
The average monthly cost of assisted living in the United States is $4,500, according to 2021 NIC statistics. This is more expensive than independent living communities (about $2,900/month) but less than memory care ($6,935/month).
The cost of assisted living, however, varies depending on several factors, including the level of care, the amenities offered by the facility, and the state in which it's located.
Average cost of in-home care
Although there's no U.S. national average for a home health aide, a paid non-medical home health aide is $27/hour, according to the Genworth Cost of Care Survey: National Median Costs.
Depending on the level of care needed, home care for an older adult may run anywhere from $25 to $40/hour, which translates to about $4,000 to $6,400/month for full-time care (based on a 40-hour workweek). However, the cost can be higher in some states or areas with a higher cost of living.
Who is assisted living for?
Assisted living is a form of long-term care designed to provide a supportive environment for people who need help with daily activities while maintaining as much independence as possible.
Assisted living can be provided in a variety of settings, including in stand-alone facilities or as part of a continuing care retirement community. About 28,900 assisted living facilities operate in the U.S., serving nearly one million residents.
Similar to an independent living facility, residents in assisted living have their own private living spaces, but they receive help with daily tasks like medication management, bathing, dressing, and meals. Assisted living residents may also participate in social activities and wellness programs designed to maintain their quality of life.
Since assisted living residents maintain varying levels of independence, facilities offer different levels of care and supervision based on individual needs, while still providing 24-hour staff availability for safety and security.
Questions to ask about assisted living costs
When considering assisted living for a loved one, it's important to ask the right questions to fully understand the costs involved and make an informed decision.
Here are 7 questions you might ask about assisted living costs:
- What's the base cost for assisted living at the facility, and what services and amenities are included in that cost?
- Are there any additional fees for services, such as medication management, daily living assistance, or transportation?
- Are there any financial assistance programs available to help cover the cost?
- Are there different levels of care available, and how do they affect the cost?
- What is the policy for increasing the cost of care over time, and how much notice will be given before any price increases?
- Is there a minimum stay requirement, and will there be any penalties for early termination of the contract?
- Are there any additional costs that could arise during a resident's stay, such as for medical emergencies or changes in care needs?
How to pay for assisted living
Here are several options to help cover the cost of assisted living:
- Long-term care insurance: Some long-term care insurance policies cover assisted living, although the specific coverage and benefits can vary widely depending on the policy.
- Medicaid: Medicaid may cover some or all of the cost of assisted living for individuals who meet the income requirements. Coverage varies by state and many facilities limit the number of Medicaid beds available.
- Medicare: Medicare generally doesn't cover assisted living costs, but may cover some healthcare services provided within the facility.
- Veterans Administration: Veterans and their spouses may be eligible for financial assistance for assisted living through the Veterans Administration.
- Reverse mortgage: A reverse mortgage allows homeowners age 62 and older to borrow against the equity in their home to help pay for assisted living.
- Private funds: Many families pay for assisted living using their own personal savings or retirement funds — individual retirement accounts (IRAs), pension plans, social security, and annuities.
- State funds: Some states offer financial assistance to seniors needing assisted living care. These programs often help by subsidizing costs or providing vouchers.
How do you qualify for assisted living?
There are no universal legal requirements for assisted living, but in general, you need to demonstrate a need for assistance with daily activities while not requiring the intensive medical care provided in nursing homes.
Assisted living facilities may also have other criteria for admission, such as the ability to pay for care and a minimum level of mobility or cognitive function.
To qualify for government-funded assisted living programs, you may need to meet certain eligibility criteria which vary by state and program.
How to save on assisted living costs
Paying for assisted living can be expensive, but there are several strategies that can help you save money on the cost of care. Here are some tips:
- Consider long-term care insurance: Long-term care insurance can help cover the cost of assisted living.
- Consider shared living arrangements: Shared apartments or companion suites can be less expensive than private units in assisted living facilities.
- Look into government-funded programs: Government-funded programs, such as Medicaid, may provide financial assistance for assisted living. This U.S. government site provides several resources and support links for seniors.
- Explore community resources: Community resources, such as adult day care centers and respite care programs, may provide affordable alternatives to full-time assisted living.
- Look into tax credits for seniors: Tax credits like the Credit for the Elderly or the Disabled can help cover much of the cost of assisted living. Some states have their own credits available on top of federal help.
- Visit reputable senior care sites: Organizations like Mirador Living and the AARP provide excellent resources on paying for senior care.
The bottom line
Choosing how to care for your loved one who needs assistance is a major decision.
If you choose community care, it's important to carefully research and evaluate assisted living facilities to find the best fit for your needs, preferences, and budget.
It may be helpful to work with a healthcare professional or care manager to navigate the process of seeking assisted living and accessing available resources.