What Does Assisted Living Cost?
Key Summary
The cost of Assisted Living ranges from $4,000 to $9,000 for each resident. Factors that affect this price include location, level of care, and more.
Finding the right Assisted Living community for yourself or someone you love to call home is a major life decision. Being open to the nature of the process and learning about the available options is key to an easier transition. Many factors play a part in this decision, and in this article, we will dive into what is a primary concern for many people: How much does Assisted Living cost and how can you pay for it?
The average monthly fees for Assisted Living range from $4,000 to $9,000 for each resident. Factors that affect this price include community location, amenities, services offered, level of care required such as skilled nursing (read more about “Types of Skilled Nursing Communities”), whether one has private living accommodations or shares space with another resident and more.
Average Cost of Assisted Living by State
The expense of Assisted Living varies from state to state, with some communities costing nearly double as much as others. According to Genworth, a leading financial organization, Delaware is the most expensive state for Assisted Living, costing $6,690 per month on average, while Missouri is the least expensive at about $3,000 a month.
Below are the top five most expensive states based on the median monthly cost of a private, one-bedroom living space in an Assisted Living community.
- Delaware - $6,690
- New Hampshire - $6,650
- New Jersey - $6,650
- Alaska - $6,633
- Connecticut-$6,300
The following are the five least expensive states for Assisted Living services per month.
How to Pay for Assisted Living
To determine the best way to pay for Assisted Living, create a budget that balances your, or your loved ones, care needs with available financial resources. A helpful strategy can be to consider the future resident's medical and personal care assistance requirements first, then focus on choosing the physical accommodations that best fit the established budget.
Perhaps you, or your loved one have saved enough to pay for Assisted Living, or you have family members with the financial means to help. However, if lump sum private funding is not an option, there are other ways to pay for Assisted Living expenses.
Social Security and Medicare
Social Security funds can help pay for Assisted Living, however depending upon the amount of one's Social Security monthly benefit, it might not cover the entire cost. As of January 2022, the average Social Security benefit is $1,657 per month, according to U.S. News and World Report.
Medicare doesn't pay for Assisted Living, but it may be used to fund the expenses associated with prescriptions, surgeries, doctor’s appointments, screenings, medical equipment, and more.
Veteran Benefits
The U.S. Department of Veterans Affairs helps qualifying veterans and their spouses pay for a portion of Assisted Living services, but not direct housing expenses. This benefit, known as Aid and Attendance (A&A), is offered only to veterans that meet low-income requirements and also experience difficulties with independently performing activities of daily living (ADLs).
Long-Term Care Insurance and Life Insurance
Long Term Care insurance policies will vary in coverage and an insurance company has the right to deny benefits if it feels an Assisted Living community is too small or doesn’t have adequate staffing levels. Therefore, be sure to review your, or your loved ones, insurance policy before moving into Assisted Living.
Compare the policy with the resident care plan and evaluation created by the Assisted Living residence and be sure to speak with the insurance company if any questions arise.
It is also possible to sell one's life insurance policy for a lump sum, which is known as a “life settlement.” This arrangement allows the policy owner to sell the contract to a third-party buyer in exchange for a lump sum of cash. These funds can then be used to pay Assisted Living expenses.
Real Estate
If you, or your loved one is a homeowner, there are ways to generate revenue, such as renting the property to tenants, selling the home, or arranging for a home equity line of credit.
Find an Assisted Living Community in Your Area
The positive impact on your, or your loved one's quality of life can be substantial by residing in an Assisted Living community. Use Referah’s community feature to easily search and connect with the best Assisted Living services for you or a loved one here.