Assisted Living Cost Breakdown
There are three key components that comprise the majority of assisted living costs. First off, when initially moving into an assisted living facility, you’ll need to shell out a fixed fee that can range from $1,000 to $5,000. This can be paid upfront in full or prorated monthly.
Secondly, you’ll have to pay monthly rent, almost like an apartment. While this figure varies depending on the location of the community, the apartment size, and some additional factors, this will likely be around $4,000.
Finally, there are a number of add-on care services such as help with bathing, eating, and medication. These offerings will vary by the facility, but they’ll most often come with additional charges on top of the monthly rent.
A Recent Rise in Costs
In 2021, the average cost of assisted living rose by 6.15 percent. Due to a growing shortage of qualified elderly caretakers, facilities have needed to pay more in order to secure the right people. Recent hikes in minimum wage requirements and changes in overtime payment legislation are also increasing assisted living costs.
Additionally, more adults with Alzheimer’s and dementia are entering retirement homes than ever before. Finding qualified staff to take care of their specific set of needs is proving to be quite expensive. Finally, with older adults waiting longer to sign up for long-term care, the care they end-up needing often proves more costly.
The More You Know: Assisted living costs go up each year, and these costs are passed along to the patrons of these facilities. When setting aside funds for assisted living, be sure to account for this annual increase.
What Goes Into Assisted Living Costs?
The one-time move-in fee is like a reservation deposit for holding your spot at an assisted living facility, many of which have lengthy waitlists. Some facilities will refund this charge in the event that you are unable to move into the property. Additionally, your monthly rental fee would cover the likes of apartment rent, exercise, health and wellness programs, utilities, basic housekeeping, maintenance, transportation, personal assistance, and catering.
Different Levels of Care
Aside from the move-in fee and monthly rent, there is also a monthly care services fee to consider. This is charged in case older adults need help with everyday activities such as bathing, eating, or dressing. Depending on the range of activities for which you need assistance (and the number of hours entailed), the total service fee will vary.
Generally, it starts from around $150 and increases as you add on services a la carte. You may also have to pay a couple of hundred bucks extra for services such as physical or occupational therapy and medication management. It’s very easy to get lost in the complexities of tiered pricing, so be sure to map your needs to services being offered by each facility.
On the other hand, some assisted living facilities offer an all-inclusive pricing model for a flat yearly fee. This one-size-fits-all model allows you to plan your monthly expenses a lot better. This means that you’re able to take advantage of basic services without incurring any additional charges.