The Average Assisted-Living Cost

The cost of assisted living is comparable to living with home health care.

Assisted living allows seniors to maintain their independence while receiving assistance with tasks they have difficulty doing for themselves. The actual cost of assisted living depends on the size of the apartment, amenities, geographic location and the level of assistance needed. Assisted-living facilities often use a schedule of fees that begins with the base monthly rent and increases with the type of services purchased for the resident.

National Average Cost

According to the Genworth 2010 Cost of Care Survey, the annual average cost of assisted living in the United States is over $37,000. This study looked at one-bedroom, single-occupancy rates in 80 markets nationwide. The rate samples ranged from $2,041 to $5,219 per month. It also found that many non-metro markets averaged under $2,500 per month. 55 percent of the facilities provided dementia and Alzheimer's care at add-on rates. The national average for this level of care rose to $53,220 per year.

Levels of Care

Assisted-living facilities generally base rates on levels of care. Basic assisted living provides laundry, housekeeping, meals and transportation. These services are most often included in the base rent for an assisted-living apartment. Levels of care may be defined by a facility as minimal, moderate, maximal, care-assist or care-enhanced.

Services and Amenities

Three meals a day are typical of most assisted-living facilities; however, some may only provide two meals. In addition to laundry and housekeeping, 24-hour security, utilities, 24-hour emergency call systems, home maintenance, trash removal, social activities and entertainment are usually included in the base rent. Personal care, such as assistance with bathing, grooming and dressing, may be charged as a flat fee or on an a la carte basis. Some facilities use a point system to determine monthly charges for personal-care services. The health aide or assistant will assign a certain amount of points for each service provided. The points correspond to a dollar amount the resident will be charged. This type of a la carte service can increase the monthly cost of assisted living by as much as $2,000.

Choosing a Facility

Signe Gleeson, president of ElderCare Solutions, recommends that consumers consider assisted living as they would any other major purchase. Not all facilities include the same services in their base rents. It is important to know what you are buying. The base rent is not the only cost of assisted living. Know which services are included and how care costs are calculated. Ask how often the facility has had rate increases and when the next one is expected. A facility will conduct an evaluation of the senior before he moves in to determine the level of care required and estimate the monthly cost. Assisted-living facilities are required by law to fully disclose the costs of care for incoming residents.

Paying for Assisted Living

Medicare does not cover the cost of assisted living. Assisted living is most often paid for with assets of the resident or family. These assets may include long-term care insurance, savings and investment accounts, home equity, pensions and Social Security. A reverse mortgage can be used to access home equity. These mortgages reduce the equity in the home but require no monthly payments. Life settlements from life insurance policies are another source of funding.

References

• Care Pathways: What Does Assisted Living Really Cost?
• Consumer Health Ratings: Nursing Home, Home Health, Assisted Living -- General Average Cost
• Genworth: Genworth 2010 Cost of Care Survey
• A Place for Mom: Comparing Assisted Living Costs to Staying at Home
• Chicago Tribune: Unraveling the Secret of Assisted Living
• National Senior Citizens Law Center: Paying for Assisted Living