What Is The Cost Of Senior Care?
The monthly cost of senior living and care is often very surprising to families just beginning their search. I like to use an automobile analogy. Youâve got your Ford Focus of senior living and youâve got your Cadillac of senior living. One family noted that a Jeep would fit their sister best! I myself owned a Ford Focus ….itâs a nice car but not high end luxury. Just as these cars vary in looks and cost so does Senior Living. Some are very modest and homey and others are gorgeous and fancy. As they differ in style they also differ in cost. This is also why some families end up making lots of phone calls to find the right senior living option….either the feel or the cost just donât fit.
Price is what you pay. Value is what you get.
~Warren Buffett
The Basic Cost of Senior Living
Independent Living (IL) – No Care offered: $900-$5000
CCRC or Continuing Care Retirement Community: This type is designed to be more of an investment. Itâs like purchasing a condo but you arenât responsible fo selling it when the time comes. You would pay an initial investment followed by a smaller monthly fee. This model usually offers future assisted living, memory care and skilled nursing all on one campus. Initial Investment – $15,000 – $600,000 Monthly Fee – $1200 – $3000 80-95% if initial investment is returned to heirs.
Assisted Living (AL) – Varied Levels of Care: $3000 – $10,000
Memory Care (MC) – Varied Levels of Care: $3000 – $13,000
Adult Family Homes (AFH) – Varied Levels of Care: $2500 – $8000
Skilled Nursing Facility – Higher Care Offered: $4500 – $15,000
Short Term Stay or Respite in an AL, IL or MC: $155 – $560 per day
Home Care/ Home Health: $20 – $45 per hour – Many have a 2-4 hour minimum.
These numbers are estimates. All fees will vary based on location, building and circumstance.
Additional Costs: Community Fee – Most Senior Living Communities require a one-time fee. $500 – $30,000 Personal items – Clothing, toiletries etc. Salon Visits – Many have on-site services with varied costs. Outside Events/Activities – Most Communities take residents to a variety of off-site activities. Transportation – Most Communities offer some transportation but outside their coverage area would be an additional cost.
How You Can Pay: Private Pay (out of pocket) – Most Senior Living falls into this category. Long Term Care Insurance – Most everyone can accept this type of payment. Check with your agent. Veterans and Spousal Benefits – A monthly benefit but may not cover entire cost. Government Subsidized – Some buildings are 100% Government subsidized and some are partial. Medicare – Accepted in Skilled Nursing. Medicaid (State Pay) – Accepted in some Skilled Nursing, IL, AL, MC & AFH. Most Communities do not accept this form of payment. Those that do often require a period of private pay before transitioning to state pay.
When you consider all the different care options and all the different financial options, itâs easy to see why finding the right Senior Living solution can be so difficult. Itâs why I started my company and I feel very lucky that I get to help families navigate through all these options.
