{"id":9220,"date":"2016-05-03T07:38:21","date_gmt":"2016-05-03T12:38:21","guid":{"rendered":"https:\/\/www.senioradvisor.com\/blog\/?p=9220"},"modified":"2017-09-19T11:58:39","modified_gmt":"2017-09-19T16:58:39","slug":"how-to-pay-for-assisted-living","status":"publish","type":"post","link":"https:\/\/d30braiqprupoq.cloudfront.net\/blog\/2016\/05\/how-to-pay-for-assisted-living\/","title":{"rendered":"How to Pay for Assisted Living"},"content":{"rendered":"

How to Pay for\u00a0Assisted Living\"How<\/span><\/h1>\n

Anyone who\u2019s priced assisted living knows why you need a plan to pay for it. The annual US median cost was $43,200 in 2015 <\/span>according<\/span> to Genworth<\/a><\/strong>, which conducts a yearly survey. That\u2019s $3,600 per month, and rates are projected to rise 2% annually over the next few years. The good news is, depending on your insurance coverage, benefits eligibility, home equity, and\/or willingness to move, you may be able to reduce the amount you pay out of pocket for assisted living. <\/span><\/p>\n

Location, location, location<\/h2>\n

Relocating might save you thousands per year. For example, someone who lives in Stamford, Connecticut<\/a><\/strong> can expect to spend about $6,270 per month on assisted living there, while a resident of Port St. Lucie, Florida<\/a><\/strong>, will spend about $2,900 per month\u2014and enjoy warmer winters, too.<\/span><\/p>\n

Assisted living costs notably more than the national median in New England, New Jersey, and New York, and also in Alaska and Washington State, per Genworth. The most expensive area in 2015 was Washington, DC, with a median monthly cost of $7,838. By comparison, Hawaii looked like a bargain with a median rate of $4,000 per month.<\/span><\/p>\n

If you live in a high-cost area, consider the benefits of moving to a more affordable place, especially if it brings you closer to friends and family. States with 2015 median assisted living costs at or under $3,000 per month included Utah, Missouri, Georgia, and North Carolina. Most of the remaining states were within a few hundred dollars of the national median.<\/span><\/p>\n

Whether you decide to stay local or relocate, you\u2019ll need to review your other payment options. First, we\u2019ll look at insurance programs, then benefits, and then home equity-related choices.<\/span><\/p>\n

What insurance may pay for, what it won\u2019t<\/h2>\n

Let\u2019s rule out the types of insurance that won\u2019t help you here. Health-care insurance paid for by your employer (or you, if you\u2019re self-employed) does not cover assisted living. Neither do disability policies intended to replace lost income for adults under age 65. Two types of insurance you may be able to use are long-term care insurance and life insurance<\/a><\/strong>.<\/span><\/p>\n

Long-term care insurance<\/i><\/strong><\/h4>\n

A long-term care policy, if you have one, may cover most of your assisted living expenses. Review your policy with your agent to make sure you\u2019re clear on what\u2019s covered, what\u2019s excluded, and what the payout limits are. Set up an auto-payment arrangement if you haven\u2019t already. Policyholders are more likely to forget to pay premiums when their health declines–exactly when they need coverage. <\/span><\/p>\n

Life insurance<\/i><\/strong><\/p>\n

You may be able to withdraw some or all of the cash value of a life insurance policy to pay for care, but experts advise caution. That money may be taxable, and that can leave with you with an unexpectedly high bill the following April. This option also, of course, reduces or eliminates what you can leave to heirs. Consult with your tax preparer and financial planner before tapping your life insurance. As with long-term care insurance, stay current on premiums.<\/span><\/p>\n

Medicare<\/i><\/strong><\/h4>\n

Medicare does not pay<\/strong> for assisted living or long-term nursing home care. Medicare <\/span>will pay<\/a><\/strong> for short-term stays in residential rehabilitation facilities if your doctor prescribes rehab after an inpatient hospital stay (in which you\u2019re admitted, not kept for observation) of at least 3 days. <\/span><\/p>\n

What benefit programs may pay for<\/h2>\n

People sometimes think Medicare covers assisted living because it\u2019s often confused with Medicaid, which does help<\/strong> some people pay for care.<\/span><\/p>\n

Medicaid<\/i><\/strong><\/h4>\n

Medicaid covers qualified long-term care costs<\/strong><\/a> for people over 65 with:<\/span><\/p>\n