The Cost of Assisted Living: The Financial Side of Long-Term Care

Long-term care is not cheap. As a matter of fact, it’s normally 60% or more of the average American household income. Although this is true, you can find different mediums of helping yourself, or a loved one, supplement the cost of assisted living.

To help you understand what you are getting into, we are going to look at the cost of assisted living, and then we are going to talk about the different types of help you can get.

How Much Does Assisted Living Cost?

Let’s get straight to it, the average cost of assisted living is $45,000 a year. That’s a whopping $3750 a month, and for those on a budget, that might not be possible. Keep in mind, this is just for the average assisted living situations, and these prices can swing heavily in different areas and facilities. Check out your area with this Senior Housing Cost Index.

cost-of-assisted-living-2If you need more specialized care than the average facility can provide, you are looking into an even higher monthly premium. Items like Memory Care and On-Site Medical Facilities can easily send your bills into the $5000 a month range.

So how can you supplement that massive bill? Let’s find out:


Medicaid is a government assistance program that helps the people pay for health care and assisted living needs. That means Medicaid can be used for coving some of the cost of assisted living and long-term care. This is the safety net for those who cannot afford their care without a bit of help.

The joint funded venture between the federal and state governments will vary state by state, so make sure you look into your local Medicaid rules and regulations.

To be eligible for Medicaid, you need to check off the following:

  1. Allocation of all your assets to the cost of your care
  2. Be a low-income household, or have medical expenses that outweigh your ability to pay
  3. Live in the State you are getting benefits from
  4. Be a permanent resident, or obtain U.S. citizenship

If you are married, the healthy spouse can normally keep the house. Maybe you are worried about losing everything, make sure you contact an elder law attorney for assistance. If you don’t know who to trust, contact Above and Beyond Senior Care Placement, and we can help you every step of the way. Our services are free, so you know it’s all about helping you get the care your loved one deserves.

Long-Term Care Policies

There are also long-term care policies that you can purchase, but it can be a hefty premium on its own. These policies are set up to help you in the case you don’t need long-term care in the future, kind of like a life insurance policy.

As a matter of fact, many people purchase hybrid policies that cover as life insurance or long-term care. This plan is a smart decision for those who are looking to cover both while not knowing if long-term care will be in the picture at all.

If you are worried about paying into a policy that you might not need, don’t fret. You can find long-term policies that you can get cash outs on. That could be a great way to get large chunks of money back in the future should long-term care end up unnecessary. Keep in mind, many of the policies will not pay out for certain benefits and bonuses of the plan, and there might be transfer fees.

If you are trying to cash out on a policy, but you aren’t too happy with the cashout value, there is another way. There are third-party vendors that will buy out the policy holder’s agreement for better prices than the policyholder gives on a cashout. It’s normally between the cashout value and lifetime policy value. They continue to pay for your policy, but they collect the payout when the policyholder dies.

It’s important to note that cashing out a policy as such can change a person’s financial status. Cashing out a policy could potentially change your Medicare status, so speak with a financial expert before doing so.


So what about the medical assistance provided to anyone over the age of 65 in the United States? Well, Medicare won’t help you pay for the cost of assisted living or any form of long-term care options. This program is designed to help you pay for short-term rehabilitation after hospital visits. Medicare also provides certain disabilities under 65 to enroll in Medicare with no premiums.

Medicare does not pay for the following:

  1. Assisted living
  2. Long-term care at a nursing home
  3. Residential care homes
  4. Any long-term care

Assisted Living and the Cost of Care

Paying the cost of assisted living isn’t the easiest task. It’s expensive, and the more you need, the more expensive it becomes. The worst part of all of this? It’s better to budget assisted living early.

If you need any help at all, Above and Beyond is a great place to start. Together, we can put together a plan to fit your needs, and help you find the best routes for financing your long-term care. We will put together your cost of assisted living, and help you find the right care for your budget.

Above and Beyond provides senior care assistance for free, so you don’t have to worry about your money yet. With more than 20 years of experience, there is no better place to start than Above and Beyond for all the senior care help you need. Let’s work together and make a plan. Give us a call.

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