How Much Does Senior Living Cost?

September 04, 2023 / Senior Living

If you or your loved ones are beginning to think it may be time to explore senior living options, you may know just how difficult it can be to find accurate pricing information and how to decipher the costs and differences between all the types of senior living facilities. This can be a complicated process, but the team at Senior Care AZ, a senior placement agency in Arizona, believes it doesn’t have to be, which is why we’re breaking down the costs of senior living: how much it costs, what factors affect the cost, and how you may be able to find payment options for your loved one’s senior living facility.

What Is a Senior Living Facility?

There are many different types of long-term facilities covered under the term senior living facility, but in general, a senior living facility is a safe and comfortable environment that is designed to provide a home for seniors as they age and begin to have more difficulty living independently. Senior living facilities have evolved greatly in the last few decades, from strict facilities to quality homes that provide seniors and their families with peace of mind and a sense of home. These facilities are designed to meet residents where they are: Many facilities provide assistance and services as needed, allowing residents to live independently in the facility until they determine what help they need and want. Seniors have the opportunity to socialize, meet friends and peers, and feel empowered in their independence without having to worry about the general upkeep of a home or tasks such as making meals. There are a number of different types of facilities, ranging in services depending on your loved one’s needs.

How Much Does It Cost to Live in a Senior Living Facility?

The cost of senior living facilities varies greatly depending on the location of the facility, the options for care they offer to residents, and a number of other factors. No two facilities are alike in the services they offer, which is why understanding your needs and doing research are necessary before committing to a facility. In general, the average cost of living in a senior living facility can range from $1,500 to $10,000. This range covers a number of different types of communities and various levels of care needed from the resident.

Assisted Living Communities

Assisted living communities are communities that provide housing and care options for aging seniors who are active but may need assistance with the smaller activities of daily living, such as bathing, dressing, or medication management. Personal care assistance, meals, activities, and transportation are generally offered to residents in assisted living communities. In Arizona, the average monthly cost for an assisted living facility is $4,000.

Independent Living Communities

Independent living communities are communities that provide housing options for aging seniors who are active and need little assistance with daily tasks. Independent living communities often have residents living in apartment or condo style homes and may offer services such as housekeeping or meals at an additional cost. In Arizona, the average monthly cost for an independent living community is $2,600.

Life Plan Communities

Life plan communities are sometimes referred to as continuing care retirement communities and are very similar to independent living communities, with the addition of a continuum of care that can include assisted living, memory care, and skilled nursing. Many life plan communities have a one-time fee that secures your home within the community and can range from $100,000 to $1,000,000+. The monthly average cost to maintain the home and receive other services in a life plan community is $3,500.

Average Cost of Senior Living

While many of the costs associated with senior living communities seem exorbitant, it’s important to take into account the average cost of aging in your own home. If you need assistance with activities of daily life, finding long term home-care can be difficult and extremely expensive. In addition to the costs of care and aging, you will need to worry about things such as a mortgage, utility bills, grocery, cable, internet, and healthcare bills, as well as the cost of prescriptions. These costs are covered in senior living facilities and may be easier to obtain and work with.

Cost of Senior Living Factors

When looking at the costs of senior living, it’s important to understand why costs may be higher or lower at one facility than another. Some factors include:

Geographical Location

Similar to real estate or the price of groceries, the cost of senior living will vary based on the location and will be higher in cities or states with a higher cost of living.

Level of Care

The level of care a patient needs will affect the costs significantly. For seniors who need very little assistance or care, they may be able to find a great deal at an independent living community where they cover little costs aside from the upkeep of their home and room and board. Other facilities, like a nursing home, offer skilled nursing, round the clock care, and medical expertise to residents; therefore, this facility will be more expensive on average.

Amenities

Amenities vary greatly from facility to facility, with some offering things such as transportation to personal events, outings, and field trips; beauty and barber shops; fitness centers; swimming pools; and private dining areas. You will likely pay a premium for these amenities, while another facility may offer fewer amenities at a lower monthly cost.

Quality of Care

Some facilities may offer a lower quality of care to account for the lower price. Ensuring you tour the facility and observe the residents, speak with staff, and get a complete view of the facility will help you make sure you are not finding yourself in a situation where care is not up to your standards.

How to Pay For Senior Living

For many, the costs of senior living can cause a financial strain, but there are options to cover these costs that are worth considering.

Reverse Mortgage

If you own a home or property, considering a reverse mortgage to cover the costs can be an option. A reverse mortgage will allow you to have enough cash flow to cover the costs of senior living without having to sell your home or property.

Long-Term Care Insurance

If you or your loved one purchased a long term care insurance plan years ago, this plan may be relied upon to cover the costs of long term care, including many senior living facilities. Long term care insurance is designed to cover the costs of custodial services and skilled nursing, so the plans may not cover all types of facilities. Benefits vary based on the plan and the provider.

Medicaid

Medicaid is a state and federal program that covers medical costs for individuals with limited income or resources. Medicaid generally covers the costs of a skilled nursing facility, such as a nursing home, if a senior qualifies based on their income and financial assets. Medicaid will likely not cover the costs of room and board for other facilities, such as life plan communities or independent living communities.

VA Benefits

The U.S. Department of Veterans Affairs, or VA, provides senior care options to certain elderly veterans who require long-term assistance. Senior living that the VA covers is often determined by their medical needs and similar to Medicaid, the VA will cover skilled nursing care but will not generally cover the costs associated with general long term senior living communities.