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How Much Does Assisted Living Cost?

When the time comes to assess plans for yourself or a loved one as you age and require an elevated level of care, cost is likely to be a significant factor in the decision-making process. Depending on the required level of care, assisted living can be an excellent option, striking a balance between independence and care, and proving more affordable compared to many nursing homes and long-term live-in care alternatives. The Assisted Living Phoenix team is elucidating assisted living costs: the services provided, associated expenses, and the potential role of insurance in covering eldercare. Continue reading to discover the expenses associated with assisted living and, if you're seeking senior care in Phoenix, reach out to us for assistance.

What Is Assisted Living?

Assisted living facilities are communities offering both housing and care options for active seniors who may need assistance with daily activities like bathing, dressing, or cooking meals. These facilities typically provide personal care assistance, medication management, meals, laundry, mobility assistance, housekeeping, and home maintenance. Residents often enjoy social activities and outings, fostering valuable socialization opportunities. Amenities and services focus on supporting physical health, social connections, and intellectual stimulation, aiming to slow physical and cognitive decline and ensure seniors remain happy and healthy.

Assisted Living Costs by State

Similar to the general cost of living, the cost of assisted living facilities varies from state to state. The below chart displays the average monthly cost of a private, one-bedroom unit in an assisted living facility in each state:

State Median Monthly Cost
Alabama $4,410
Alaska $4,817
Arizona $5,448
Arkansas $5,053
California $5,419
Colorado $5,925
Connecticut $7,250
Delaware $5,972
District of Columbia $11,490
Florida $4,650
Georgia $3,995
Hawaii $8,100
Idaho $4,336
Illinois $5,900
Indiana $5,300
Iowa $5,669
Kansas $6,000
Kentucky $4,513
Louisiana $4,710
Maine $7,695
Maryland $6,285
Massachusetts $7,695
Michigan $5,213
Minnesota $6,418
Mississippi $4,452
Missouri $5,800
Montana $6,105
Nebraska $5,935
Nevada No data available
New Hampshire $6,950
New Jersey $7,710
New Mexico $4,600
New York $6,895
North Carolina $5,490
North Dakota $5,745
Ohio $5,315
Oklahoma No data available
Oregon $6,275
Pennsylvania $5,635
Rhode Island $5,925
South Carolina $4,415
South Dakota $6,083
Tennessee $4,417
Texas No data available
Utah $4,220
Vermont $8,400
Virginia $5,555
Washington $6,175
West Virginia $5,460
Wisconsin $5,850
Wyoming No data available

Source: Genworth’s Cost of Care Survey Data from the National Senior Living Cost Index

Does Insurance Cover Assisted Living Costs?

In general, private health insurance does not cover assisted living costs. However, individual plans may differ, necessitating a discussion with your insurance company to explore available options. While some plans may cover medical care provided by the assisted living facility, it's crucial to ascertain the specifics of coverage from your provider.

How to Pay for Assisted Living

The cost of assisted living can be overwhelming, prompting individuals to explore various medical and financial resources. Options include paying out of pocket, selling assets like homes, or considering alternate payment methods.

Does the VA Pay for Assisted Living?

The VA does not cover rent or basic services in assisted living facilities. However, the Veterans Aid and Attendance Pension Plan may assist in covering costs for eligible individuals.

Does Medicare Pay for Assisted Living?

Medicare does not cover room and board or assistance with activities of daily living (ADLs) in assisted living facilities. Coverage may extend to medical services and some health services for individuals with a Medicare Advantage plan.

Does Medicaid Pay for Assisted Living?

Medicaid coverage varies by state and typically covers nursing services and personal care assistance but not room and board.

Does Long-Term Care Insurance Cover Assisted Living?

Long-term care insurance plans may cover assisted living costs, depending on the plan and provider. It's advisable to consult with the insurer to understand coverage and options.

Is Assisted Living Tax-Deductible?

The deductibility of assisted living costs depends on the specific situation. If the primary purpose is medical care, the IRS considers the entire cost, including lodging and meals, as tax-deductible. For non-medical purposes, only the cost of medical services may be deductible. Keep detailed records and receipts for tax purposes.