As many people age, assisted living becomes the best option. This is definitely the case for many baby boomers who are making their way into retirement. As such, assisted living is talked about among not only family physicians but also financial planners. This is because assisted living is often more costly than people expect. Thankfully, there are things that you can do to afford assisted living.
What Is Assisted Living?
Assisted-living programs offer the elderly supervised living spaces that are safe for them to spend their golden years. They don’t have to worry about being home alone or what would happen if they slip and fall while no one is around. According to the U.S. Census Bureau, the population of elderly Americans who need help doing daily activities is over 6.5 million, and it’s estimated that this number will double by 2020.
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The Cost of Assisted Living
Now that you know a bit about what assisted living is, you need to know how much it costs, but this differs depending on the facility and its location. That being said, the cost of assisted living in a private room is only around 60 to 70 percent of the cost of living at a nursing home. This could mean that people pay around $50 to $120 a day, or $1,500 to $3,600 a month. This number can be a big shocker for people who haven’t planned ahead for retirement.
Paying for Assisted Living
When it comes time to pay for assisted living, people have a lot of options to consider. These options can be weighed with the help of a healthcare investor, such as Yosef Meystel. Investors can help you determine which course of action is best for you. Maybe you want to pay for assisted living using your investment portfolio, such as an Individual Retirement Account or a 401K. People who own homes often choose to sell in order to pay for the cost of assisted living.
Maybe you want to use long-term care insurance. However, it’s important to remember that long-term care insurance usually has restrictions. For example, some insurance policies don’t cover people for long-term care unless they are able to perform at least two or more daily living activities. These daily activities may include eating, dressing, bathing, using the toilet, walking and so on. Other groups may have the elderly individual evaluated by a physician of their choice.
While Medicare doesn’t pay for assisted living, there are some cases in which Medicaid does. For example, Medicaid sometimes pays for assisted living in limited duration, usually about 90 days. However, if the individual’s physical condition doesn’t improve, Medicaid usually stops paying for the arrangements.
There is financial assistance out there for people who need it. However, the sooner you start planning for the cost of assisted living, the better. Most of the time, financial assistance doesn’t pay the full cost of assisted living but helps make the payments more manageable. In either case, looking for a healthcare investor could be the best answer.