How affordable are senior home options?

If you suddenly needed in-home care or nursing home care, could you afford it? Or would your life savings be depleted in the face of potentially significant Long-Term Care costs?

Remember that most health insurance plans do not cover long term care. Medicare was not designed to cover custodial care – which is what many people will need. Even more importantly, Medicaid doesn’t cover care until most of your assets are depleted.

Senior housing options are many, and plenty expensive. Here’s what they cost:

  • Continuing care (CCRC) communities:  According to SeniorHomes.com, incoming residents pay a one-time, upfront entrance fee, a buy-in or ownership fee, plus monthly fees. Price ranges are from $20k – 200k per year depending on the community. Seniors join these communities when they are relatively active and live independently in apartments, then gradually move into on-site assisted-living or nursing home facilities.
  • Assisted living communities: According to a survey conducted by MetLife, the national average for assisted living base rates was $3,550 per month in 2012. Licensed and regulated by the state, these communities are intended for those who need some help with the activities of daily living such as dressing, eating or bathing, but are not totally disabled. Residents usually buy or rent rooms or apartments.
  • ECHO (Elder Cottage Housing Opportunity) housing: According to the U.S. Department of Housing and Urban Development, a 500 square foot one-bedroom unit installed, is around $25,000. These units are small, inexpensive prefab homes that can be leased or purchased and placed on the property of relatives or caregivers.
  • Nursing homes: According to a MetLife Market Survey, the average cost in 2009 of a private bed in a nursing home facility was $219 per day, or over $79,000 per year. For those patients who are in a semi-private room, the average cost is $191 per day, or about $70,000 annually. Nursing homes focus on individuals who are disabled, acutely ill or need help with many activities of daily living.
  • Help from outside or live-in caregivers: According to Caregivers.com, live-in caregivers cost from $700 to $3000 a week. Costs vary widely, depending on what part of the country you live in and what the living accommodations are.

Arm yourself with the facts to protect your dignity, your savings, and your freedom to make your own choices. I can help.               ~ Elise

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