Budget Information About Assisted Living Centers
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Monthly Versus Buy-In
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Assisted living can be billed on a monthly or buy-in basis. A buy-in refers to the resident either purchasing an apartment or paying a large lump sum. With both options there will still be a monthly amount due. Some residents prefer paying a lump sum as this leads to lower monthly costs.
Services Offered
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The average monthly cost will vary greatly depending on what services are offered. Services can include meals, laundry, personal assistance, outings and more. Assistance can be scheduled or unscheduled, and health care providers can be on-site or on call 24 hours per day. Some assisted living communities will let a resident choose what services are needed; this is commonly referred to as an a la carte package. Other ALFs have a basic room and board fee--a level of care fee is added to this. The level of care is usually determined by a health care provider once an assessment is completed. As residents continue to age, services and level of care is increased as needed.
Long-Term Care Insurance
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Many communities accept long-term care insurance policies. Though assisted living is not skilled care, many policies will cover assisted living when someone cannot perform regular activities of daily living, or ADLs. Bathing, toileting, as well as assistance with dressing and dining, are examples of ADLs. Each policy will vary greatly, some paying for a certain time period of care and others with no time limit.
Private Pay
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According to The American Health Care Association, assisted living is primarily a private-pay setting. Many times, selling of a home or cashing in a life insurance policy can aid with the cost of assisted living. However, 75 percent of assisted living costs are paid out of pocket by the resident or the resident's family.
Governmental Assistance
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Each state will vary on additional funding available to individuals who cannot afford a private pay community. The National Center for Assisted Living states the most commonly used program to supplement cost is social security, or SSI. Medicaid is accepted in many states; however, rules vary from state to state. The average person's income must be less than $2,000. The individual must qualify and require assistance in a health care setting. In most cases this must be confirmed by a physician. The average wait time to be accepted into a community that accepts governmental assistance can be lengthy, sometimes more than 6 months.
Veteran's Benefits
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The VA's "Aid and Attendance" program will pay for the care of veterans as well as their surviving spouses. To qualify, the VA will look at income levels as well as if the veteran served on active duty during a wartime period. The amounts vary greatly. However, many private-pay communities accept Aid and Attendance benefits. The benefits can also be used for home health care and long-term care. Representatives from the VA are available to assist families who are interested in learning more about Aid and Attendance. This service is free of charge.
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