Why is assisted living for seniors so expensive? |
Posted: July 23, 2019 |
Seniors are moving to assisted living facilities in record numbers. You may be researching your options for yourself or a loved one, and you are wondering why assisted living is so expensive. While it may seem expensive on the front-end, you may see that assisted living is less costly than aging in place. Each year billions of dollars are spent on senior living and assisted care, and most of the money goes to labor and facilities maintenance. We will take you through the various costs associated with assisted living and show you forms of aid available to you and your family. Seniors are moving to assisted living facilities in record numbers. You may be researching your options for yourself or a loved one, and you are wondering why assisted living is so expensive. While it may seem expensive on the front-end, you may see that assisted living is less costly than aging in place. Each year billions of dollars are spent on senior living and assisted care, and most of the money goes to labor and facilities maintenance. We will take you through the various costs associated with assisted living and show you forms of aid available to you and your family.
Home Care Costs What is home care and what does it cost? Home Care is non-medical care that you can receive from the comfort of your own home. A home care aide will come to your home and help with daily activities like laundry, medication, eating, and bathing. Typically, home care providers charge an average of $20/hour regardless of if a senior has dementia or Alzheimer's. Depending on your state, you will find services ranging from $15 to $26+/hour. If you need home health care, the starting range is $17/hour.
Senior and Assisted Living Apartment Costs
What is an assisted living apartment and what does it cost?
Assisted living apartments provide seniors who can live independently with services such as meals, housekeeping, and medication management. Most people in an assisted living apartment can care for themselves but need help with household chose like laundry or personal hygiene like bathing. Most assisted living residences have security systems in place and medical staff on hand for the safety of residents.
Depending on what state you live in, you can expect to pay anywhere from $2,500 to $5,800 / month. The average cost per month for senior living in America is $3,600/ month. While this may seem high, there is no maintenance or additional medical care required as opposed to when you live in your home. This fee also includes daily activities and transportation in many cases..
Nursing Home Costs What is a nursing home and what does it cost?
Nursing homes offer round-the-clock skilled nursing facilities and help people with advanced illnesses, dementia, or Alzheimer's, or those who cannot care for themselves properly. The average cost of a nursing home in America is about $6,600 / month. This rate is higher due to the skilled medical attention that a person receives.
Adult Day Care Costs What is an Adult Day care and what does it cost? Adult daycare is typically used by primary caregivers to get a little bit of a break from caring for a senior but still making sure that they are well taken care of. The staff at these facilities help with medication management provide meals and snacks, perform physical or mental health therapy, and will arrange social activities and the transport associated with them. Adult daycare facilities operate during regular business hours, like a 'children's daycare; however, they may be open on weekends as well.
Adult daycare centers usually charge per day or half-day. The range of daycare pricing is $70 / day or $1518 per month.
Cost of Medication Many seniors find that they need medication as they age. AARP finds that the average older American will spend about $121 - $220 / month on generic drugs and medications.
What Payment Options Are Available for Senior Living?
Many families use multiple sources to cover the cost of senior living. These options include the Following
· Medicare · Veteran Benefits · Reverse Mortgages* · Savings
Medicare Benefits Depending on your health situation, Medicare may cover some of your care. When it comes to nursing homes, Medicare will pay for 100% of the cost of using a facility up to 20 days. After that, your family will have to pay 80% of the $6,000/ month average or $1,320 / month for the next 80 days.
The best thing to do is to research your specific needs and see what is available to your family. Medicare may cover in-home hospice or end of life services, but researching your options ahead of time is essential to creating a holistic financial plan.
You and your family may want to look into Medigap plans which offer supplemental assistance like paying 20% of the cost of nursing home care that Medicare does not pay.
Senior Living Assistance for Veterans Some seniors use pension benefits from Aid and Attendance which can provide up to $2,500 / Month, but there is also VA Respite Care that is available through Veterans' Directed Home and Community Based Services.
Reverse Mortgages Reverse Mortgages typically do not make sound economic sense, but some families use them to pay for senior care. Things to take into consideration for this option are marital status the duration of care needed and your expected duration of need. According to Dave Ramsey, "Reverse mortgages are often targeted at senior citizens who have tight budgets, fixed incomes, and a majority of their house paid off. Reverse mortgages may seem like they could be an effective cash-flow option for people in their retirement, but really, these mortgages put seniors and their heirs at financial risk." If you are a single senior with no dependents, a reverse mortgage may be for you, but this option should be a last resort.
Life Insurance In many cases, you can exchange your life insurance for senior living care services. This option allows you, the policyholder, the ability to receive money for assisted living and maintain your choice for Medicaid eligibility.
To convert your life insurance, you can either
a) Request accelerated death benefits or a death benefit loan. b) Sell the policy c) Exchange the policy for care services.
Many organizations will determine the policy's value and convert that into a specific number of months or years at a residential care facility.
Now you know why assisted living apartments, nursing homes, and adult daycares cost so much. Creating a safe and caring environment with well-trained staff requires money, and in your later years, you deserve the best. After reading this article, you know the various financial options available to you to pay for senior living. Hopefully, this will aid you in making the best decision for you and your family for the future.
Are you looking for high-quality, high-value assisted living apartments? Visit Sabal Palms Senior Living for more information on how you can live the life you deserve in retirement.
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