As the population ages, the demand for residential long-term care continues to rise. This impacts the cost of services, with Genworth projecting an increase of over 30% in assisted living expenses between 2024 and 2034.
Residential care can be a cost-effective alternative to staying in your house, and with some financial planning, the transition can be smooth and manageable.
Assisted living is a long-term care option that includes housing and nonmedical personal care services. Depending on the community, residents live in private or semiprivate suites or apartment-style units. They typically have access to community amenities such as activity rooms, outdoor living areas and dining areas. Many residences feature additional amenities, including libraries, computer rooms, hair salons and fitness centers.
This senior care solution is ideal for older adults who don’t have extensive or ongoing medical needs but primarily need help with day-to-day activities. Communities have caregivers on staff who assist with a range of needs, including:
Assisted living communities also support residents’ health and wellness through scheduled activities. For example, depending on their interests, residents living in assisted living communities under the Bethesda Senior Living Communities umbrella often participate in fitness classes, clubs and social events.
In most cases, assisted living communities charge a standard one-time move-in fee. This fee typically ranges from $1,000 to $5,000 and funds a variety of initial services and move-in costs, including:
Payment and refund policies vary across communities. For example, you may have the option to pay the fee up front or break it up into monthly payments. If you decide not to move into the residence, some communities offer a partial refund, while others consider the fee nonrefundable.
According to the Genworth 2024 Cost of Care Survey, the median cost of assisted living nationwide falls near $5,350. However, fee structures vary across communities. Some communities have flat-rate costs, while others offer tiered pricing depending on the services you need.
Assisted living residences within the Bethesda Senior Living Communities network charge a standard apartment monthly fee. This fixed amount pays for basic living expenses, such as:
Residents pay an additional fee based on the level of care they need according to their assessment. This fee covers all the services you need to stay healthy and comfortable, including:
Some communities have additional monthly costs that are usually optional, depending on the amenities you use. For example, community outings may have associated costs not covered by your monthly rent, or the community you choose may have a salon and spa with services you can access à la carte for an additional expense. Some pet-friendly assisted living residences charge one-time or monthly fees for keeping a pet.
Most assisted living residents pay out of pocket for their care. Medicare doesn’t cover assisted living, and while some state Medicaid programs offer coverage for residential care, beneficiaries typically must require nursing home-level care to use these benefits. Fortunately, there are other options for covering residential services.
If you’re selling your home to move into an assisted living community, proceeds from the sale can help you cover expenses for years to come. Alternatively, if you want to maintain possession of your home, you may be able to use it to fund your care by renting it out or taking out a reverse mortgage.
Qualified veterans can use VA benefits to pay for long-term care, including assisted living. To access benefits, you must meet eligibility requirements and choose an assisted living community the VA runs or has inspected and approved.
Many long-term care insurance policies have partial coverage for assisted living services. While every policy is different, most reimburse for a portion of the costs you pay out of pocket.
If you’re waiting on funding for assisted living and need money in the meantime, a bridge loan can tide you over. As its name suggests, this type of loan acts as a short-term financial bridge while you wait to receive proceeds from a home sale or a payout from your long-term care insurance policy. You can use it for assisted living expenses, such as move-in fees and monthly rent.
By understanding and planning for assisted living expenses, you can ease your transition to long-term residential care and enjoy financial stability throughout your retirement. To get help with planning for assisted living fees, contact us today.
