Huntsville families who realize that an aging loved one needs help with daily activities may turn to Assisted Living communities, but some struggle with how to pay for it. Those who haven’t given much thought to it often do not realize that Medicare does not universally cover long-term care costs for seniors.
Alabama is the only state other than Kentucky that does not cover payment for assisted living communities under Medicaid, although it does provide nursing home care through the program. The average nursing home costs per month are approximately $5,200, while assisted living communities cost half as much. The good news is that Alabama is ranked second, behind Missouri, for the least expensive median monthly assisted living costs on a comparative survey. The most expensive state, Alaska, costs more than twice as much.
It’s also important to remember that Assisted Living communities may include meals, utilities, services such as laundry and housekeeping, and personal care, which add up quickly, even if someone remains in their home. Caring for an elderly parent may require assistance with mobility, food preparation and tasks such as helping them to dress and bathe themselves, forcing a family member to step up as a caregiver and sacrifice time to these tasks – a difficult proposition for someone working full-time outside of the home to spare.
Contrast that with seniors living in Assisted living who gain a community where they are not only taken care of but experience opportunities for social engagement that simply don’t exist for isolated seniors aging in place in their homes.
Still, the question remains… without Medicare or savings, how does one pay for it?
Some options available to most people include Long-Term Care Insurance (LTCI), Converting Life Insurance Policies for Long-Term Care Benefits, VA Benefits, and Reverse Mortgages.
LTCIs to cover the cost should be purchased before health issues arise since most companies will not insure people with preexisting conditions. It’s important to read and understand the entire policy so the buyer is not stuck with something that is useless or won’t keep up with inflation when eventually needed.
“Aid and Attendance” benefits from the Department of Veterans Affairs can go toward Assisted Living for those who qualify (veterans and spouses of veterans who have served at least 90 days on active duty and at least one day during wartime).
Life insurance policies can be converted to pay for long-term care benefits and Reverse Mortgages allow seniors to sell homes they will no longer occupy if they move into an Assisted Living center.
A bridge loan can help pay for costs during the time when a home is put up for sale or paperwork is being processed by the VA, said Jeff Clay, Vice President of Business Development for Regency Retirement Village.
These options can make a senior living community more affordable for most people. Whatever path is chosen, seniors and their families need to get all the facts so they can make informed decisions and plan well ahead of needing Assisted Living care. The US Department of Health and Human Services offers practical advice on the website LongTermCare.gov.
To learn more about Regency Retirement Village, call (256) 852-0033.