Every year, more and more seniors enter assisted living communities. These centers provide basic assistance with living and allow retirees to maintain an independent lifestyle for a longer period of time. But assistance isn't the only reason many seniors continually flock to these beautiful communities. Activities, group outings and the chance to mingle with other retired seniors are certainly appealing, but unfortunately, these benefits come at quite a cost. According to a recent 2008 MetLife survey, the average cost for assisted living centers reached over $36,000 a year!
Luckily, there are many ways to pay for assisted living. In general, Medicare does not pay for assisted living expenses; it only pays for medically necessary skilled nursing facilities or home care. Medicaid, on the other hand, is a state and federal government program that will pay for certain health services including some assisted living centers. Eligibility and coverage vary from state to state, but most often your income and assets determine your eligibility. Unfortunately, in order to receive Medicaid assistance, you may have to use the majority of your savings and assets first. As a result, Medicaid isn't a great choice to depend on when looking to pay for assisted living.
The best plan might just be to purchase a long-term care insurance policy. As you age, the price of the insurance policy increases, so seniors are advised to look into purchasing a policy in their 50's rather than in their 80's. Since private insurance is optional, some insurance companies may deny you coverage as you age. Long-term care insurance will pay for much of the assisted living costs as long as it is within your policy's limits. Each insurance policy differs in coverage and amounts, so make sure you read the fine print before choosing the best policy.
Another way to paying for assisted living is by taking advantage of the PACE program. If you qualify, the PACE program (Programs of All-inclusive Care for the Elderly) will pay for all of your long-term care needs. For most participants, this program allows them to continue living at home while receiving assisted services. While you won't be able to move into an assisted living center, you will be able to receive assistance with the daily activities you need like bathing, dressing, monitoring your glucose and cooking. Unfortunately, not every state offers a PACE program, so check to see if your state offers it under Medicaid.
Other less desirable ways to pay for assisted living include taking out a reverse mortgage or cashing in your life insurance policy. In certain cases, a combination of creative planning can free up the cash you need to live comfortably and peacefully. For many seniors, assisted living allows them to remain autonomous and independent during their golden years. While paying for these services can be costly, the benefits are certainly worth it.
