If you have a loved one who needs assisted living and you find yourself having to pay for it, there is a good chance that you were not anticipating that this was going to happen. Many people believe that this will be covered by government subsidies in the case that someone needs assisted living. However, this is typically not the case. The cost of assisted living facilities can vary greatly depending on the different types of places and different amenities that are provided to residents at these places.
Base rates for these facilities typically cover room and board, as well as two to three meals per day. You may have to pay extra for entrance fees or fees for services such as laundry and housekeeping, though many of the facilities will include these services with the base cost. On average, a private one bedroom apartment in one of these facilities will cost more than $3,000 per month. Though this can be a large sum for many, it is actually less than what you would likely have to pay for nursing home care or a home health care worker.
The specific price that you would have to pay could also depend on the needs of your loved one. Many of these facilities use a tiered pricing model to determine how much each resident will have to have paid; someone who needs very little assistance from the staff would be on the lowest tier. You can speak to someone at an assisted living facility to see which tier your loved one would be on.
Though most people pay for these facilities using private financial resources, in many cases there are other resources that are in place to help with a situation like this. Depending on the insurance policies of the individual who is to go into assisted living, some of the charges may be reimbursable. There are also independent financial assistance programs at some of these facilities.
However, if this is not the case, people may have to leverage their assets. In the case of most seniors who have to go into assisted living, their homes are their biggest assets. They can either sell or rent their homes and use the money from this to fund the assisted living, which should be of great help to you. There is also the option of a reverse annuity mortgage, where the individual can use the value of the home without having to give it up. Find out what your options are before you make any financial decisions.
You should also look into the government subsidies that are available to fund assisted living. You should, however, be aware that the amounts for which individuals are eligible are typically limited. Medicaid is the biggest provider of funds for room, board, care, and activities in these facilities, though some people can find help in housing and veterans subsidies and Medicare as well.
If you can afford living care insurance, this might be the best way to make sure that you are able to afford the widest range of choices in quality options for assisted living for your loved one.
Of course you want to make sure that your loved one is placed in the best assisted living facility possible. However, you want to make sure that you are not paying more than you need to be and that you take advantage of the resources that are available.