How Can I Afford an Assisted Living Facility for My Parent?
If you’re the adult child or relative of a senior who is struggling to live on their own, you might feel overwhelmed in caring for them.
An assisted living facility is an ideal solution to shift the burden of care to dedicated, caring community staff members who can provide your loved one with the level of assistance they need. However, paying for assisted living can be another challenge unto itself.
To help you explore your options, we’ve outlined some tips for understanding and financing the cost of an assisted living facility for your loved one.
Assisted living costs
Just as there are many assisted living options to choose from, there are different payment models and options available.
All-inclusive assisted living
With the all-inclusive pricing structure, families pay a flat monthly rate that incorporates all of the amenities the community has to offer for its residents. While the services offered vary, most all-inclusive facilities include the following in their monthly rates:
● Personal care
● Community programming
The benefit of an all-inclusive facility is that all of your loved one’s needs are paid for via one monthly bill, making it easier to plan and budget for your loved one’s health care and cost-of-living expenses. The price also won’t increase, even if your loved one requires more care in the future.
The downside of all-inclusive senior living facilities is that, with the variety of amenities and extensive care that they offer, their prices are generally more expensive.
Other assisted living pricing models
If you and your family are concerned about budgeting for assisted living costs, there are other pricing model options besides all-inclusive to consider, including:
● A la carte pricing (“fee for service” model): With a le carte pricing, the senior living facility charges residents monthly for their rent and meals, but any additional services are charged separately.
● Tiered pricing (“levels of care” model): If your loved one only requires assistance with basic housekeeping and personal care, but is otherwise fairly independent, then a facility with a tiered pricing model might be the best option. These facilities often have 3-4 different service packages to choose from.
Assisted living financing options
While Florida’s Medicaid Long-Term Care Managed Care (LTCMC) plans can cover the costs associated with assisted living, not every prospective resident is eligible for coverage. To qualify for the LTCMC program, a resident must require a nursing home level of care based on their health condition(s), as well as meet certain income and resource limits.
If your loved one does not meet both of these requirements, it falls to families to pay for assisted living. Fortunately, there are some financing options that can help.
Life settlement accounts
If your loved one has a life insurance policy they don’t need, they can sell the policy to a life settlement company in exchange for a lump sum payout. While the payout won’t equal the full value of the policy, it is typically higher than the cash surrender value.
Short-term bridge loans can help finance the transition of selling your loved one’s home to help pay for their senior living costs. Bridge loans provide funds for seniors to apply towards their assisted living costs when they’re in the process of selling their home. Once the house has sold, your loved one can pay off the bridge loan.
Long-term care insurance
Investing in a long-term care insurance policy can help cover your loved one’s senior living costs. Be sure to review the policy or contact the insurance agent to ensure these expenses are covered.
Aid and attendance benefit
The federal Veteran Aid & Attendance benefit can help cover assisted living expenses if your loved one is a United States military veteran. If the veteran meets the requirements, they could be eligible for up to:
● $2,230 per month for married veterans
● $1,881 per month for single veterans
● $1,209 per month for surviving spouses
Finding the right facility for your loved one
Finding the right assisted living or long-term care facility for your aging relative or parent can be difficult. The trusted senior living consultants at Welcome Home Senior Services and Placement Company can help. We represent more than 500 Florida senior living communities and offer free concierge services to assist you in your search. Contact us today for a consultation to discuss your loved one’s needs.