How Much Does Assisted Living Cost?
May 01, 2023 / Assisted Living
When the time comes to begin evaluating plans for yourself or a loved one as you begin to age and need an increased level of care, cost will likely be a big factor in the decision making process. Depending on the level of care needed, assisted living can be an excellent option that balances independence and care while also being more affordable when compared to many nursing homes and long-term live-in care options. The Senior Care AZ team is breaking down assisted living costs: what services an assisted living facility provides, how much it will cost, and what role insurance may play in paying for eldercare. Read on to learn how much assisted living costs and if you’re looking for senior placement services in Arizona, contact us for assistance.
What Is Assisted Living?
Assisted living facilities are communities that provide both housing and care options for seniors who are active but may need a certain level of assistance and care with some activities of daily life, such as bathing, dressing, or cooking meals. Assisted living facilities will typically provide services such as personal care assistance, medication management, meals, laundry, assistance with mobility, housekeeping, and home maintenance. In an assisted living community, there are often opportunities for social activities and outings with other members of the community, providing valuable socialization opportunities for residents. Amenities and services in assisted living communities often focus on supporting physical health, social connection, and intellectual stimulation for residents, with the goal of slowing physical and cognitive decline and ensuring seniors are happy and healthy.
Assisted Living Costs by State
Similar to the general cost of living, the cost of assisted living facilities varies from state to state. The below chart displays the average monthly cost of a private, one-bedroom unit in an assisted living facility in each state:
| State | Monthly Costs |
| Alabama | $3,503 |
| Alaska | $6,830 |
| Arizona | $4,000 |
| Arkansas | $3,760 |
| California | $5,250 |
| Colorado | $4,750 |
| Connecticut | $5,129 |
| Delaware | $5,995 |
| Florida | $4,000 |
| Georgia | $3,535 |
| Hawaii | $5,375 |
| Idaho | $3,838 |
| Illinois | $4,488 |
| Indiana | $4,283 |
| Iowa | $4,367 |
| Kansas | $4,580 |
| Kentucky | $3,448 |
| Louisiana | $3,748 |
| Maine | $5,865 |
| Maryland | $4,900 |
| Massachusetts | $6,053 |
| New Jersey | $6,495 |
| New Mexico | $4,498 |
| New York | $4,580 |
| North Carolina | $4,010 |
| North Dakota | $3,391 |
| Ohio | $4,635 |
| Oklahoma | $3,855 |
| Oregon | $5,045 |
| Pennsylvania | $4,100 |
| Rhode Island | $6,826 |
| South Carolina | $3,612 |
| South Dakota | $3,350 |
| Tennessee | $4,105 |
| Texas | $3,998 |
| Utah | $3,500 |
| Vermont | $5,250 |
| Virginia | $5,250 |
| Washington | $6,000 |
| West Virginia | $4,160 |
| Wisconsin | $4,600 |
| Wyoming | $4,169 |
Does Insurance Cover Assisted Living Costs?
In general, private health insurance will not cover the cost of assisted living. However, many plans are different, so it is worth speaking to your insurance company to discuss the options they may offer. Some plans may cover the costs of any medical care provided by the assisted living facility, but it is best to call your provider to get the specifics of what your plan and provider may be willing to offer as far as assisted living costs. Many individuals have to find alternate payment options due to the lack of coverage by their private health insurer.
How to Pay For Assisted Living
The cost of assisted living is staggering for most, and many individuals will need to pull from various medical and financial resources to cover the costs. Without a solid plan of action for how to pay for assisted living, savings could quickly be drained trying to pay for eldercare. Some options that we see people turn to frequently include paying out of pocket or selling a home or other financial assets. For individuals who have large amounts of savings or well-funded retirement accounts, paying out of pocket allows them to keep the assets they own while covering the cost of care. For individuals with less ample savings, considering the sale of assets such as a home would be an excellent option. If you own the home outright, the sale of your home would provide you with funds that could contribute to the cost of an assisted living facility. It may be a more complicated option for individuals who still have a mortgage on the home, as the funds from the sale of the home must go towards paying off any remaining balance on the mortgage before any money can be distributed towards paying for assisted living.
Does the VA Pay For Assisted Living?
The VA will not cover the costs of rent or basic services in an assisted living facility. The Veterans Aid and Attendance Pension Plan, on the other hand, may be a helpful source for covering the costs of an assisted living facility in some cases. Individuals who have a total net worth of less than $150,538 may qualify for this pension plan to pay out a significant monthly sum to cover the costs of assisted living and other care options. There are other veteran programs, both state and federal, that may offer assistance for veterans and their families seeking help covering these costs.
Does Medicare Pay For Assisted Living?
Medicare will not cover the costs of room and board or the costs of assistance with ADLs in an assisted living facility. Medicare will likely pay for medical services rendered by the facility, as well as some other health services such as physical and occupational therapy. Individuals with a Medicare Advantage plan may have more coverage, and speaking with the provider will help provide more specifics on what the Medicare plan covers in each specific situation.
Does Medicaid Pay For Assisted Living?
Does Medicaid pay for assisted living? Medicaid provides health coverage to more than 80 million Americans, including eligible low-income adults, people with disabilities, and elderly adults. It is administered by each state, so the coverage depends on your state of residence, among other factors. Many state Medicaid plans will cover the costs of nursing services and personal care assistance; however, states are not legally allowed to use Medicaid assistance to cover room and board.
Does Long-Term Care Insurance Cover Assisted Living?
Long-term care insurance is an insurance policy that many individuals will purchase in their younger years to cover costs that begin to accrue as they age. Long-term care insurance plans will cover the costs of assisted living, provided you have a plan in place that you have already been paying into. It may be difficult to acquire a plan at the time you wish to move to an assisted living facility. The specifics of what will be covered depend on your plan and provider, so speak with your insurer to determine what exactly will be covered and what your options are when it comes to assisted living.
Is Assisted Living Tax-Deductible?
Whether or not your assisted living costs will be tax-deductible depends on your specific situation. In cases where you or your spouse are dependent on an assisted-living facility primarily for medical care, the IRS states that the entire cost of the assisted living facility, including lodging, meals, and care, will be tax-deductible as a medical expense. In cases where the primary purpose of the assisted living facility is non-medical and the resident is dependent on care for activities of daily living such as housekeeping or personal care, only the cost of any medical services at the facility will be deductible. If you, your dependent, or a senior in your care is currently residing at an assisted-living facility for which you are covering the costs, it is important to keep all documents related to the facility as well as any receipts throughout the year to ensure that you can itemize your deductible expenses when completing your yearly tax returns.