Paying for Assisted Living and Long Term Care
Our customers often come in with questions concerning the costs of assisted living and long-term care facilities.. As you are looking into different care facilities for your loved ones, we are here to help you explore a variety of payment plans and options. When calculating the costs for assisted living or long-term care facilities, the expenses can vary according to each facility.
Assisted living costs are usually dependent on the facility, its amenities, size, location, and other factors. The costs vary across states and different regions. The national average cost of assisted living in 2018 is $3,750 a month and $45,000 a year. The states with the highest national average (which ranges around $5,000-$6,000) include New Jersey, Massachusetts, Maryland, Maine, and Connecticut. States with the lowest average and a range of around $3,500 include Arkansas, Alabama, North Dakota, Louisiana, and Mississippi.
Many people are surprised to find that assisted living and long-term care are not completely covered by government assistance programs. For example, Medicare and Medicaid do not provide for all the costs of assisted living. In certain regions, Medicaid has a waiver program providing coverage for nursing home facilities. Every state has different requirements for eligibility and amount of coverage. Medicaid is funded by both the federal and state government and has its limitations. For this reason, Medicaid is dispersed according to each state’s individual policies. The program can subsidize payments for long-term care facilities, specifically nursing homes. However, keep in mind that not every assisted living facility or nursing home will accept Medicaid as payment. Therefore, it’s best to check what sort of financial assistance is accepted with each facility.
The Department of Veteran Affairs has programs assisting veterans with coverage, including nursing homes. Depending on the program, spouses of veterans are also included in the coverage. The VA will subsidize certain services but the program does not cover rent and living expenses. The Veteran Aid and Attendance program is one program that reduces the expenses of long-term care. Talk to a VA social worker or case manager to find out if you are eligible.
Personal Funding and Loans
Since government coverage can vary in each state according to your needs, it is not a guaranteed source for most people. A majority of people end up using their personal funds such as retirement savings, pension, or social security to cover senior living expenses. Long-term care insurance can also help cover the costs of assisted living. There are also other ways to finance assisted living costs such as reverse mortgage loans, home equity loans or bridge loans.
A reverse mortgage is a loan available to seniors 62 years and older. The loan gives seniors the opportunity to turn their home’s equity into monthly cash payments. These payments can cover the costs of senior living, and the loan does not need to be repaid until 6 months after the homeowner passes away. In many cases, the borrower’s home will be sold off and the loan will be paid off this way. Another option is a home equity loan, which is a type of second mortgage. If your home is worth more than what you are paying in your first mortgage, then you may qualify for a home equity loan. In a home equity loan you can borrow against your home’s equity value and make payments over a course of time. Another option is a bridge loan, which is helpful if you are selling your current home, but have not found a buyer yet. The bridge loan temporarily covers your senior home expenses until the home is sold. Once you sell your home, you can pay off the bridge loan.
We’re Here To Help
If your loved one is in need of specialized long-term care, Senior Care Center is here to guide you to the right place. Our advisors are available to answer any questions and concerns about financial planning, and we are more than happy to assist you in your needs! Call us now at (866) 518-0936 to set up a one-on-one appointment with a personal advisor. We’ll walk you through the process step-by-step. We can also set up tours for you to view each community you are interested in. Our advisors will help you explore every option available, and will help you examine the benefits of each residency. We’re happy to help you select the right home for your family.