It’s been over 15 years ago but feels like just yesterday. My dad had recently passed away, and I had to move my mom to an assisted living facility because she couldn’t live alone due to her Parkinson’s disease. I did my research, visited a lot of facilities and ultimately selected a quality facility that also happened to be close to my home for quick and easy access.
According to the Administration for Community Living, someone who’s turning 65 today has an almost 70% chance of needing long-term care during their remaining years. About 20% of those people will need that care for five years or longer.
It’s not an easy topic to think about, but a responsible part of embracing golden is to plan ahead.
Types of long-term care
- Family caregivers – Loving care from family, either in your home or theirs, is an option that many people take. And while this arrangement usually reduces the cost of care, over time it can possibly take a mental and physical toll on the family caregiver.
- In-home health aides – There are many reputable companies that provide in-home health aides. Depending on the level of care needed, this option could become expensive, especially if round-the-clock care is required.
- Retirement/Independent – These facilities offer independent living and focus on creating a social atmosphere for residents, with activities and on-site amenities.
- Assisted living – These facilities offer residents a quasi-independent living environment, but staff is on-hand to help with daily care if needed, such as dressing, bathing, etc. Meals are also included with most meals eaten in a communal dining area. Facilities can also offer activities and on-site amenities.
- Group/Residential care home – Privately-owned, neighborhood-based dwellings run by licensed caregivers. They do support help with daily care, but do not provide skilled nursing support.
- Nursing home – Provides medical and personal care services beyond what’s available in assisted living. Nursing care, around-the-clock supervision, assistance with activities of daily living and three daily meals are standard.
- Memory care – For people with Alzheimer’s disease, other types of dementia or serious memory problems, memory care communities come with an extra level of care and supervision. These units are located within many nursing homes and assisted living communities.
Ways to pay for long-term care
When looking for a facility for my mom, I was shocked when I found out that the cost of assisted living care ranged from $2,000 – $4,000 per month, with the highest rated facilities costing even more. Since then, costs have continued to climb. The national monthly median cost of assisted living in 2023 was $4,774, according to the Genworth Cost of Care survey.
I was also surprised to learn that Medicare does not cover assisted living costs, so that’s another reason why having a plan is important. Here are some ways to cover the cost of care:
- Out-of-pocket – Residents use personal savings, monthly social security/pension, retirement accounts, etc. to pay for care on their own. This may result in draining savings.
- Long-term care insurance – This is a specific kind of insurance policy that’s designed to provide funding for long-term care needs later in life. These plans can be structured as stand-alone policies sold by private insurance companies directly to consumers or to employer-sponsored groups.
- VA Aid and Attendance benefit – This provides a monthly benefit to qualified Veterans and survivors if you need help with daily activities, or you’re housebound.
- Medicaid – This option may be available to help pay for long-term care costs if you meet the financial threshold and requirements. There are constraints and restrictions around what Medicaid covers and because the program is administered at the state level, there can be wide variation in benefits depending on where you live.
Help and Resources
Contact your Area Agency on Aging to locate resources in your community. The Eldercare Locator offered by the U.S. Administration on Aging can help you start the search for facilities in your area, as can U.S. News’ Best Senior Living Communities.
The experience with my mom was a big wake up call for me and what families face when dealing with extended care for themselves or loved ones.
Share your experience with finding and paying for long-term care so we can all learn and grow together.