Holbrook BlogThe aging process is not simply a time to look back and celebrate a life well-lived, it’s an opportunity to look forward and make plans for a juncture when you or your loved one may need more care. Many families put off discussions about how to pay for assisted living, memory care and long-term care, but they do so at their own peril. As with most things in life, making a solid and realistic plan is essential, and it will reward you with peace of mind knowing that you’re not turning a blind eye on an important stage of life.
Thankfully, there are plenty of resources available to help familiarize you with the financial landscape for higher levels of care. Start the process early. Don’t put it off until the last moment, or you risk being pushed into hasty (and costly) decisions.
Following are three top considerations to bear in mind when planning for assisted living, memory care, or long-term care.
1. Get Real About the Cost of Care
The amount of money Americans spend for higher levels of care like assisted living is astonishing. Many of us simply close our eyes and look the other way until the need is upon us. We may assume that government programs such as Medicare and Medicaid will address our needs when the time comes, but it’s important to know that Medicare does NOT pay for assisted living, memory care, or nursing homes providing long-term care. Medicaid, however, does pay for long-term care, but only for those who can’t afford it on their own. So, if you’re like most Americans and fall somewhere in the middle, then you (or your loved one) need to make alternate plans.
The costs of care depend on which kind of care your loved one requires. Per long-term care insurance provider Genworth, the median annual costs of higher levels health care in Southern Maine are as follows:
- Adult day care – $2,340 per month
- Home health care – $4,385 to 4,862 per month
- Assisted living: $5,580 per month
- Nursing home care: $8,912 per month for a semi-private room
Note: A separate survey of memory care offerings in Southern Maine places the median cost of this specialized form of assisted living care at over $7,000 per month.
Add these costs up over multiple years, and you can see just how hefty the sum can be. So, getting real about the price of care is the first critical step. Also, keep in mind that these are “median” costs. Communities range widely in price, based upon levels of care, amenities, and services offered, as well as location.
2. Seek Advice from Numerous Sources
Ideally, the time to start planning for higher levels of care like assisted living is when you are in your 50s or early 60s. For instance, this is the time when you should be signing up for long-term care insurance or lifecare. As you or your loved one begins to get closer to needing higher levels of care, that’s the time to tap into resources for advice.
- Ask someone who’s had recent experience looking for assisted living or memory care in your area. Someone who has just been through the process will know the landscape and the pitfalls. Take them out for a cup of coffee or breakfast (or drink J) and ask them to share what they learned on their journey.
- Schedule an appointment with a retirement community or an assisted living community that you already know and respect. These communities are well-versed in the key questions you need to answer and they will often take the time to help get you started (especially if they think you or your loved one are a potential prospect). At Holbrook, you can fill out an online inquiry form that will get the process underway.
- Seek guidance from a financial advisor and start a comprehensive review of the range of options and considerations before you, including: social security, taxes, veteran’s benefits, long-term care insurance, life insurance policies, personal savings, stocks, bonds, investments, pensions, reverse mortgages, and more. If you don’t have a financial advisor, try this online resource designed to help you find one. In Maine, you can also start with Maine Senior Guide. Remember, the costs associated with hiring a good financial advisor may save you money in the long run.
3. Don’t wait until you’re desperate.
Once you’ve taken step one and two, start to visit and compare the options. If you think home care is the best first step, conduct some interviews with providers nearby. If assisted living is your best option, take a tour and consider getting on the waiting list of some communities you like. Talk to as many residents as possible. Ask if there are incentives or specials available. For example, a community may waive an entrance fee, offer a month’s rent for free, or pay for your moving costs. Some assisted living communities have a limited number of Medicaid subsidized units available for those who have limited financial resources or for residents who outlive their savings.
No matter what your age, (or the age of your loved one), it’s never too late, nor too early to start planning for the senior care journey. Turning a blind eye will not serve you well. Like anything in life, a positive attitude and a curiosity about your best options can lead to a certain and affordable outcome.
