Assisted living and skilled nursing facilities are invaluable assets when it comes to person-centered senior care. For an older adult living with dementia or other conditions that impact activities of daily living, long-term care services can vastly improve quality of life.
But the cost of assisted living can vary based on the level of care needed. This article breaks down the cost of assisted living and other personal care services.
How Much Does Assisted Living Cost in the United States?
According to data from 2024–2026, CareScout now places the national median cost of assisted living at $5,900–$6,300 per month. These fees often cover the costs of rent, meals, 24/7 staffing, housekeeping, utilities, and transportation.
If this cost feels alarming, don’t be discouraged. There are plenty of states that offer more affordable assisted living. Mississippi, Alabama, and Idaho all have an average assisted living cost of $4,800.
Even if you live in a more expensive state, pricing can still differ significantly between communities.
This is due to factors such as:
- Location
- Level of care
- Amenities and service
- Room size
The best way to find exact pricing is to contact the senior living community directly, as pricing is usually case-by-case.
What Is Included in Assisted Living Costs?
Typically, the steep monthly fees of assisted living communities are due to the extensive care and amenities that come with residency.
Assisted living fees usually cover:
- Housing and utilities
- Medication management
- Meals and dining programs
- Housekeeping and maintenance
- Transportation services
- Activities, amenities, and wellness programs
- Basic health monitoring and support
Not every community will include these specific services in their fees, so it’s important to ask for clarification when touring communities and gathering pricing information.
What Factors Affect the Cost of Assisted Living?
Most assisted living costs are determined by location, types of care provided, amenities, and staffing.
Each community is different, so research available options thoroughly and make sure you look at certain factors like:
- Level of care and personal assistance required
- Apartment size and floor plan
- Community amenities and lifestyle offerings
- Staff availability and on-site care services
- Specialized care needs (mobility support, memory support, etc.)
After researching what these factors look like at each facility, decide what you want to pay for and what you are willing to give up. Choosing an assisted living facility is a personal choice that all depends on you and your needs.
How Do You Pay for Assisted Living?
Paying for assisted living, depending on the facility, is typically done through private pay methods such as retirement income, personal savings, or pensions. In most cases, Medicare does not cover assisted living costs.
Other payment options can include:
- Long-term care insurance
- VA benefits
- Bridge loans
- Family contribution
Because assisted living is primarily covered through private pay, it’s wise to start planning early and review your assets and budget. This will allow you to decide the best way to pay for long-term care.
Does Medicare Cover Assisted Living Costs?
Depending on the facility, Medicare can cover some assisted living costs. This is determined by the category the bill falls under. Medicare cannot cover long-term care costs such as rent, meals, and general care costs.
However, Medicare can cover short-term medical expenses such as:
- Physical therapy
- Lab tests
- Doctor visits
- Short-term skilled nursing
Some plans can offer extra coverage, but rarely cover rent. Speaking to a financial planner can help you understand your options.
Can Medicaid Help Pay for Assisted Living?
Typically, Medicaid does not pay for monthly rent and meals at assisted living communities. However, Medicaid waiver programs can help cover certain medical expenses and assisted living services.
Currently, 46 states provide financial assistance through these Medicaid waiver programs. They offer help with coverage for assisted care for activities of daily living (ADLs) and medication management. Most programs require applicants to meet certain functional and financial criteria in order to meet eligibility requirements.
Some facilities will not take Medicaid, so it’s important to research different communities and find out which ones allow for Medicaid use.
Using Long-Term Care Insurance for Assisted Living
In most cases, long-term care insurance can cover assisted living costs in relation to the medical care needed, but generally does not cover rent or meals. Policyholders must qualify for coverage by being unable to perform at least two activities of daily living (ADLs) or having severe cognitive impairment.
Some older policies may not cover assisted living at all, so you will need to take a look at your policy’s wording and ensure it includes terms such as “assisted living” or “alternative care services.” You will also need to verify that your chosen facility meets your policy’s requirements.
With this policy, you can expect a deductible period of 30-90 days. Any expenses before this period ends will need to be paid out-of-pocket.
Veterans Benefits and Assisted Living Costs
While certain veteran benefit programs can aid in assisted living costs, they usually do not directly cover rent. However, these benefit programs can help offset monthly costs. Eligibility depends on the program but usually requires at least 90 days of prior active duty and a medical need for assistance with daily living activities.
A popular VA benefit program is the Aid & Attendance (A&A) Pension. This is a monthly, tax-free pension for veterans or their spouses who need assistance with activities of daily living or are bedridden. Another option is Veterans Directed Care, which allows veterans to select their own personalized care.
The application process can take months, so plan ahead and use accredited representatives as you apply for these programs.
Luxury Assisted Living at The Manor Village
At The Manor Village, we encourage seniors to live as independently as they wish, while providing skilled nursing services to create a safe environment for you or your loved one.
Contact us today to learn more about our services, amenities, and pricing.
