What is Assisted Living and How Can I Afford It?

Introduction

Assisted living facilities provide housing, meals, personal care, and health services for seniors who need assistance with activities of daily living. Residents live independently within the community but have access to 24-hour supervision and care. Services offered include medication management, bathing, dressing, housekeeping, laundry, transportation, social activities, and more.

The average cost of assisted living in the U.S. is approximately $4,000 per month. However, many seniors have limited financial resources to pay for care. This article explores strategies and options to make assisted living affordable for low-income older adults. We provide guidance on financial assistance programs, alternatives to traditional assisted living, housing resources, government aid, care assessment and decision tools, emergency planning, support services, frequently asked questions, and additional sources of information.

Cost Analysis

The monthly costs of assisted living depend on the level of care needed, type of amenities provided, geographic location, and more. Nationally, the average monthly rate is $4,051 for a one-bedroom unit in an assisted living community.

Specific monthly costs can range widely:

• Basic care in a shared unit starts around $1,500 per month
• Private one bedroom units with expanded care services can cost $4,500 – $9,500+ per month
• Memory care for Alzheimer’s disease/dementia residents costs $5,400 on average

While costs are significant, there are cost-saving strategies that seniors can utilize:

• Seek communities that base fees on assessable income rather than market rates
• Apply for financial assistance and government subsidies if eligible
• Consider more affordable alternatives like in-home care or shared housing
• Obtain an objective senior living advisor and care assessment to identify affordable options

Financial Considerations

Seniors have diverse financial situations that determine what care options are viable. Key factors include:

• Income Levels – e.g. low-income (less than $25k/year), moderate-income ($25k-$50k), or high-income (over $50k), as well as assets/savings
• Location – States and cities with lowest cost of living will offer most affordable assisted living options
• Eligibility – Some government health programs provide financial assistance if age/health eligibility requirements are met

Low-income elders are generally defined as those with annual individual incomes below $25,000 or married couples with combined incomes under $50,000. Those who meet state eligibility criteria can qualify for certain financial assistance programs.

Financial Assistance Options

For low-income seniors, paying for assisted living is challenging but there are ways to reduce costs including:

• Medicaid Waivers – Provide funding for in-home care and sometimes assisted living services as an alternative to nursing home care
• SSI/SSDI – Supplemental income programs help pay for housing/services if eligibility criteria are met
• Area Agencies on Aging – Offer subsidized care and support services for qualifying low-income seniors
• Affordable Housing – Some government and nonprofit groups provide reduced rent for older adults
• Charities/Churches – Groups like Catholic Charities, Benevolent and Protective Order of Elks, United Methodist Homes offer financial aid

Additional options are covered later in this guide.

Alternatives to Traditional Assisted Living

For those who cannot afford market-rate assisted living, alternatives that provide senior housing, care and assistance are:

• In-Home Care – Home health aides, companions and housekeepers allow seniors to age in place at home
• Adult Foster/Shared Homes – Live in a private room with shared common space at lower costs
• Subsidized Senior Apartments – Below market rate rental units with access to services
• Continuing Care at Home – Bring assisted living services into one’s existing home

These options allow seniors to receive care while paying affordable rent and maintaining independence. Support is also available to help cover medical costs.

Housing Options

Finding affordable assisted living starts with understanding appropriate housing resources in your geographic area:

• Contact your local housing authority to ask about public senior housing programs
• Reach out to Area Agencies on Aging for subsidized senior apartments
• Inquire directly at low-cost assisted living communities about reduced fee eligibility
• Search online directories like AffordableHousingOnline.com for availability in your area
• Talk to a government-sponsored housing counseling agency for customized guidance

Various nonprofit and government organizations provide reduced rent housing for qualifying low-income older individuals so be sure to explore what is available.

Government Aid

In addition to housing assistance, federal and state programs provide money for expenses like medical care, food, utilities and more. Key options include:

• Medicaid – For those with very low assets/income. Can sometimes pay for care costs
• Medicare Savings Programs – Helps lower-income seniors cover Medicare out-of-pocket costs
• SNAP – Food assistance for low-income households
• LIHEAP – Helps pay heating/cooling bills
• SSI/SSDI – Provides direct cash assistance for everyday costs

Eligibility and covered services vary greatly depending on the program. Consult a benefits advisor to determine what is accessible in your state.

Care Assessment and Decision Tools

Choosing the right senior care option requires carefully assessing individual needs and budget. To guide decisions, consider taking these steps:

• Document health conditions, capabilities, limitations and prior living arrangements
• Catalogue income, assets and expenses to determine funds available for care
• Consult an objective Senior Living Advisor for guidance and community recommendations
• Take advantage of the Eldercare Locator – a public service that provides counseling
• Tour recommended assisted living locations in-person to evaluate appropriateness

Using these assessment tools and getting input from experts can help identify affordable assisted living or alternative solutions.

Emergency Situations

A distressing situation can occur when assisted living residents deplete their financial resources and can no longer afford care. In these cases, options include:

• Apply for Medicaid/Medicare to pay for nursing home care
• Transition to lower cost shared housing situation
• Seek temporary financial assistance from government/charitable sources
• Discuss extended payment plans and reduced fees with community management
• Get placed on waitlists for subsidized housing programs
• Consider relocation to a family member’s home if feasible

While painful choices may be required, social workers and senior care advisors can provide guidance to ensure ongoing housing and care during difficult transitions.

Support and Services

Seeking and qualifying for financial assistance programs often requires expertise. The following free services are available:

• Senior Living Advisors – Provide guidance to families needing affordable care options for loved ones
• AAAs – Area Agencies on Aging help seniors apply for assisted living financial assistance
• Aging Life CareTM Managers – Assist with care planning and public benefit qualification
• Home Care Agencies – Can arrange affordable non-medical in-home services
• Village Movement Groups – Volunteer community support networks for members wishing to age in place

These individuals and groups work to match seniors with affordable services, housing and care.

Frequently Asked Questions

How do I qualify for low-income assisted living?

Each state has different eligibility criteria regarding income/asset limits. Inquire with your Area Agency on Aging, State Health Insurance Assistance Program (SHIP) or state/county Medicaid office.

What organizations offer financial assistance for assisted living?

Social serve organizations like Catholic Charities, Benevolent Order of Elks, United Methodist Homes and more offer aid. Area Agencies on Aging also have resources.

What is the best way to find an affordable assisted living facility?

Use the Eldercare Locator public service, get a care assessment with a senior advisor, take tours and ask about low-income qualification programs.

Conclusion

Paying for assisted living is difficult for low-income seniors but possible through financial assistance programs, subsidies and community guidance. Area Agencies on Aging, housing groups and senior advisors help navigate the maze of options. Seeking objective counsel is key to securing affordable senior care.