Many people are interested in trying out assisted living care for an elderly loved one but are not sure what to expect cost-wise or are unaware of their options for funding the care. In this blog, we’ll discuss some creative ways to pay for assisted living or In Home Companion Care and how the services are usually paid for.
There are several ways that people can pay for assisted care living for their aging loved ones. Most individuals and families pay for assisted living through their personal bank accounts or savings funds, also known as private pay. Other family members might also contribute to cover the costs.
Here are a few other common methods people use to help pay for assisted living:
Medicare, the U.S.A.’s federal health insurance program, is designed to cover medical services and treatments. Since assisted living is generally considered a non-medical service, Medicare typically does not pay for assisted living. However, it may cover certain short-term care or medical services in other settings, such as nursing facilities or home healthcare.
Alternatively, Medicaid, the U.S.A.’s joint federal and state program that provides health coverage to eligible low-income individuals, can potentially provide financial assistance for assisted living services, often doing so through Home and Community-Based Services (HCBS) waiver programs. Not all states offer Medicaid coverage for assisted living, though, and the ones that do have different eligibility requirements regarding covered services, so be sure to look into the specifics for your state.
Depending on the type of policy and coverage a person has, insurance can also potentially pay for assisted living. For example, long-term care insurance is designed to cover the costs of long-term services such as assisted living. Other policies, such as hybrid/combo policies and health savings accounts (HSAs) or flexible spending accounts (FSAs) can also offer options for covering costs related to assisted living care. Some life insurance policies even allow you to convert a portion of the funds to be used for long-term care services.
Technically, the person who is receiving care is responsible for paying for their own assisted living services. Thankfully, as we mentioned above, there are many avenues available for someone looking to cover the costs of assisted living services.
Individual payment plans will, of course, vary based on factors such as someone’s individual and familial circumstances, the area they are in, and the specific assisted living facility they choose. We recommend researching your options, exploring different potential payment sources, and consulting with financial advisors or elder law attorneys to create a payment plan that best aligns with your financial situation, care needs, and personal and familial wishes regarding care.
The average cost of assisted living varies from state to state and location to location, also depending on factors such as the level of care a patient needs and the types of amenities that they’re wishing for. Here are some of the things that typically make up the cost of assisted living:
You can speak directly with assisted care facilities or use online resources such as assisted living cost calculators to get a general idea of how much you’ll be spending on long-term care and compare prices for different locations. Please note there is a difference between the average cost of assisted living vs the average cost of in home care.
According to a survey done by Genworth on the cost of care in 2021, the average monthly cost for assisted living in the state of Indiana is a whopping $4,283 per month. Home care is (understandably) significantly cheaper at an average of $25/hour in Indiana, of course, depending on how many hours you’ll need to hire someone for and the costs of food, living space, etc., that are covered in the cost of assisted living facilities as listed above. Learn more about Home Health Aid Cost Per Hour.
We proudly provide non-medical elderly care companion services to older adults in the Indiana and Florida areas. Contact us today if you’d like to learn more about how we serve with integrity, effectiveness, and compassion.