How to Pay for Assisted Living Near Me
Updated: Jul 14, 2021
Did you know that the national average cost of assisted living care is $4,300 per month according to a 2020 study by Genworth? Depending on how long you intend to live in an assisted living home, that can add up quickly, especially for seniors who are on fixed incomes. Of course, the cost of assisted living near me changes depending on locations, services, room types, and amenities. If $4,300 per month is the average, that means some seniors pay even more! Having an expense of between $35,000 and $70,000 a year to fund assisted living can be shocking on seniors and their families, who often help with the cost of care. Most families fund assisted living through private funds, meaning a combination of savings, Social Security benefits, pension payments, and retirement accounts. However, not all people have access to this type of private pay. If you are needing help paying for assisted living, below you will discover some financial tools that may help.
Does Medicare or Medicaid Cover Assisted Living Costs?
Medicare and Medicaid are often mixed up and cause a lot of confusion. Here is the difference:
Medicare - federal health insurance program for people ages 65 and over, some younger individuals with disabilities and some individuals with end-stage renal disease. Medicare does not cover the cost for assisted living near me.
Medicaid - joint federal and state program that helps people with low income and limited assets cover health care costs, including long-term care. Each state sets its own guidelines for eligibility and services, but individuals must meet federal requirements.
Due to the fact that Medicare is simply an insurance program, like most other health insurance plans, Medicare does not cover the cost for long-term care services such as assisted living. Medicaid can, to some degree, often assist with assisted living costs. Medicaid does not cover the cost of room and board for assisted living like it does for a nursing home. However, depending on the state, Medicaid may help cover home or community services that can delay or prevent a permanent move into a long-term assisted living facility.
Long-Term Care Insurance
Seniors can purchase long-term care insurance through a private insurance company to help cover the costs of assisted living near me. The monthly premium cost varies depending on the insured’s health, age, and amount of coverage needed. Signing up and getting LTCI in advance can best serve seniors, as those who have pre-existing conditions such as Alzheimer’s, MS, stoke or Parkinson’s disease are often denied. Research shows that the best time to purchase LTCI is between the ages of 40 and 50 when someone is still in good health. The older someone gets and the less healthy they are, the higher the premium cost.
The U.S. Department of Veteran Affairs offers pension funds to those who have served in the U.S. military and to their surviving spouses. Those who are eligible generally have low income and limited assets. However, there is an additional benefit called The Aid and Attendance benefit which increases the monthly amount that veterans and their families can receive. Many people are unaware of this program. Specifically, the Aid and Attendance Program helps vets and their spouses pay for long term care services, whether it is residential care, assisted living near me, or in-home caregiver services. The amount allotted to each veteran depends on their income and if they are married or not. It supports service providers that perform activities of daily living (ADL’s) such as bathroom assistance, bathing, feeding, getting dressed, and more.
The Arizona Long Term Care System, or ALTCS, as many refer to them, is an Arizona program designed to help seniors pay for in-home care, assisted living care, or skilled nursing home care. Applicants for ALTCS cannot have more than $2,000.00 in countable resources such as bank account balances, life insurance policy values, and assets such as second homes. Monthly income also cannot exceed more than $2,100.00. Applications for ALTCS generally take 45 to 60 days to get approved.
Life Insurance Settlement
If the above resources are unhelpful, perhaps a life insurance settlement could assist you in paying for assisted living. Here’s what happens. Policy holders of existing life insurance can convert their policy into money that can help pay for assisted living near me. A third party comes into the deal and buys the policy for cash. Now that third party assumes the responsibility of paying the premiums and becomes the beneficiary of the policy.
If you own a home and have a decent amount of equity in it, you can convert some of that equity into cash, while still retaining ownership of the home. The most common type of reverse mortgage is a Home Equity Conversion Mortgage. To learn more about a HECM, read more on Investopedia.com. Usually when a senior wants to use the cash from a HECM to pay for assisted living, there are stipulations on the senior’s spouse, such as that they must reside in the home and maintain it per the terms of the loan.
Annuity Income Used for Assisted Living Near Me
Many financial planners are able to set elders up with an annuity. This is a contract between an individual and an insurance company with the purpose of meeting retirement and other financial goals. Individuals make either a lump-sum payment or a series of payments to the insurance company, and in return, the insurance company makes periodic payments to the owner of the annuity. This can turn savings or investments into steady streams of income.
How Brookhaven Assisted Living Can Help You
Most of the residents at Brookhaven Assisted Living use private pay to fund their monthly payments for assisted living. If you are in need of assisted living, but are struggling to find a way to fund it, give us a call. Let us see how we can help you. If we can’t help, we will put you in contact with someone who can. At Brookhaven Assisted Living, you can rest assured that no hidden fees will come up on a future invoice. We value transparency and try our best to communicate with residents and their families upfront about the costs of assisted living. To find out how much it would cost for you to live at our assisted living facility near me, call us at (623) 349-7510 to learn more.