How to Pay for Assisted Living

Deciding to move to assisted living is a huge life decision. As good as it can feel to move to a community that supports your health and wellness, there’s a lot that can feel overwhelming, especially the cost. Whether you’re just beginning to explore assisted living options, or you’ve narrowed your choice to a select few communities, understanding how to pay for assisted living is crucial.

We know how challenging it can be to plan for and manage the costs of assisted living, but we’re here to help guide you through the process.

Assisted living communities are long-term care communities that provide housing, supportive services, and hands-on care for older adults who need help with the activities of daily living (ADLs) like managing medication, meals, and personal care. These communities combine independence with assistance in a neighborhood setting with resort-style amenities.

It’s an ideal lifestyle for older adults who need some assistance with daily tasks, but don’t require 24-hour skilled nursing care.

This is a question most people ask but there isn’t one answer. The cost of assisted living can vary depending on the community, where it’s located, what services and amenities you require, and the type of room you choose.

According to Genworth’s latest cost of care survey data, and assuming a 5% compound inflation in 2024, the national monthly median cost of an assisted living community is $5,618. However, the actual cost varies widely from state to state and even city to city. Assisted living residents will typically sign a residency agreement similar to an apartment lease. The monthly fees can cover all services or there may be additional charges for services above the monthly fee.

Amy Prentzler, senior manager of clinical claims at CareScout, says it's important to tour the communities you’re considering. She suggests taking the time to meet with residents and staff as well as seeing all available apartment options.

“Consider preferred activities and programs — social and recreational — that you like to participate in,” Prentzler said. “Does the assisted living community you’re considering cater to your interests or hobbies? If you have a pet, are they a pet friendly community? Will you be having any overnight visitors? If so, you will want to check with the assisted living to make sure this is allowed.”

As you decide on an assisted living community make sure you get a breakdown of every cost based on services you want now and services you may need in the future.

“Don’t hesitate to ask questions,” Prentzler said. “There is no such thing as a wrong question when deciding on an assisted living option.” 

So, you’ve decided assisted living is right for you and you’ve chosen the perfect community — that’s great! The next step is deciding how to pay.

When paying for an assisted living community, residents and their families typically pay out-of-pocket and/or with the help of long-term care insurance. Both of these options are considered private pay. Depending on your coverage, long-term care insurance is a great way to help pay for assisted living costs.  

Here are some of the important facts you should know about your long-term care insurance policy:

• Policy or claim number: You don’t have to memorize it, but make sure it’s written down and easily accessible. 

• Eligibility requirements: Is there a minimum number of activities of daily living (ADLs) that you require assistance with? Does your insurer require an eligibility assessment visit? 

• Elimination period: This is the number of days of residence in a community or the number of home care visits you must have received and paid for with your private funds before policy reimbursement begins. 

• Daily benefit amount: The maximum amount that your long-term care insurance policy will cover daily and may vary by type of provider. 

• Policy lifetime maximum: The total maximum amount your policy will pay out during your lifetime. 

• Other policy restrictions: What provider types does your policy cover? Do assisted living providers have to meet any specific set of criteria for your policy to cover the cost? (e.g., number of residents or minimum capacity, licensure status) 

• Assignment of benefits: Your authorization to let the assisted living community bill your long-term care insurer directly for services provided. If assignment of benefits is not available, you may pay the provider from private funds and submit copies of the assisted living invoices to your insurer for reimbursement. 

Navigating the costs of assisted living can be one of the most stressful and confusing parts of planning your care, with so many factors to consider and prices that can add up quickly. CareScout is here to help — whether it’s finding the best rates or exploring potential discounts. If you’re using long-term care insurance, don’t forget to review your policy and connect with the customer service or claims department to understand all your options. 

Prentzler says CareScout is a great resource for older adults and their families who are looking for a helping hand as they navigate aging care. “Our goal is to empower you to make a decision that fits your lifestyle, goals, and preferences.”