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Do Assisted Living Facilities Take All Your Money?
Date Updated: July 26, 2024
Written by:
Rachel Lustbader is a writer and editor with a background in healthcare and technology. Her work has been published on websites including HealthCare.com, BiteSizeBio.com, BetterHelp.com, Caring.com, and PayingforSeniorCare.com. She studied health science and public health at Boston University.
Both of Rachel’s grandmothers had very positive experiences in senior living communities, and Rachel saw firsthand the impact that kind, committed caregivers and community managers can have on seniors’ and their family members’ lives. With her work at Caring, Rachel hopes to help other families find communities, caregivers, and at-home products that benefit elderly loved ones and make life less stressful for family caregivers
No, assisted living facilities don’t take all your money. After you pay your care costs, you can spend or save any remaining personal funds as you choose. You may have a significant sum left over each month if you have a high retirement income or substantial assets. However, assisted living may use most of your funds if you have limited means.
Median cost of assisted living
Depending on location, services and amenities, assisted living costs vary significantly across the country. Per Genworth’s Cost of Care Survey 2021, the median price of assisted living in the United States is $4,500 per month. Alaska is among the most expensive states for assisted living, with a median monthly rate of $6,830, closely followed by Rhode Island, where fees run $6,826. At the opposite end of the financial spectrum, Missouri has some of the nation’s lowest assisted rates at $3,000 per month. South Dakota and North Dakota are also notably affordable, with median monthly costs of $3,350 and $3,391, respectively.
Ways to pay for assisted living
Most states offer financial assistance programs for assisted living, but they typically have low income and resource caps. Furthermore, because Medicaid rarely pays for room and board, many qualifying older adults have little money remaining after paying for non-covered aspects. Approximately 18% of assisted living residents qualify for Medicaid assistance. According to the American Health Care Association and the National Center for Assisted Living, most seniors use some private pay methods to pay for assisted living. This includes retirement income, such as pensions and Social Security payments, savings and financial help from relatives.Some seniors sell assets to help pay for their care, and homeowners will take out a reverse mortgage or rent out their property. Sometimes, individuals can get an advance on life insurance policies, and long-term care insurance may pay toward assisted living for existing policyholders. Additionally, VA Aid and Attendance benefits or Housebound allowances are options for former members of the U.S. Armed Forces.