Assisted Living Costs & Financial Resources

People pay for Assisted Living through a variety of sources, including:

• Private Pay
• Selling a Home
• Long Term Care Insurance
• Veterans Benefits
• Life Insurance
• Medicaid

Steps to Take When Planning for Assisted Living

When planning for Assisted Living, it’s important to take several key steps to ensure a senior can afford a community they are interested in.

• First, assess available financial resources, including retirement savings, investments, Long Term care insurance or Veterans benefits.

• Next, research and visit communities to find one that meets your loved one’s needs and budget. Be sure to ask about the level of care provided, the amenities and services available, and any additional costs.

• Finally, create a budget and plan for future expenses, including any potential increases in Assisted Living costs.

What Is Memory Care?

Memory Care communities are designed to help families find a safe and caring environment for a loved one living with Alzheimer’s disease or other forms of dementia.

What Services Does Memory Care Provide?

Memory Care also provides help with the Activities of Daily Living, and offers luxurious living spaces, fine dining, housekeeping, laundry, hair care services, transportation, and many purposeful events and activities.  

What to Look for In a Memory Care Community

Within Memory Care communities, seniors have access to 24 hour care, and the assistance of a compassionate, professional staff who works to meet each individual’s unique needs. When deciding on a Memory Care Community, look for one that focuses on its residents’ individuality, offers quality services and events, and is dedicated on meeting people’s long-term medical care needs.

How to Know Whether a Loved One Needs Assisted Living or Memory Care

Generally speaking if an older person can no longer live safely at home and requires help with the Activities of Daily Living (ADLs), Assisted Living is a great care option.

A loved one who needs assistance with ADLs, but is also showing signs of cognitive loss due to Alzheimer’s disease or other forms of dementia would be better served in a Memory Care community.  

The good news is that you do not have to make this decision on your own. There are many professionals in the senior living community field who can help you make an appropriate assessment of your loved one’s situation.

What’s the Difference between Assisted Living & Memory Care?

Assisted Living communities are designed to help residents who need a more formal care setting than Home Care provides. Assisted Living focuses on providing residents assistance with Activities of Daily Living (ADLs), which include dressing, bathing, eating, using the washroom and moving about. Medication management is also a big part of Assisted Living services.

Memory Care services are also built around providing assistance with Activities of Daily Living, and medication management, but expands care by specializing in helping residents living with various levels of cognitive decline. Many Memory Care residents have Alzheimer’s disease or other forms of dementia.

How to Know When It’s Time to Transition to Memory Care

Here are some signs to look for that it might be time for an older person to transition to a Memory Care community.

• They begin wondering aimlessly or get lost.
• Become aggressive.
• Have frequent bouts of forgetfulness.
• Socializing become difficult.
• Eating habits change.

Talk About It   

The first step involves talking to the older person about the need to move to Memory Care community.  

Discussing recent changes or struggles they have been experiencing, and how a Memory Care community can help is beneficial.  

It is important to note however, that based on the level of cognitive deficiency an older person is experiencing, having a conversation about Memory Care may be less effective for some families. Being prepared for possible resistance to the idea will be helpful. All people resist change, so a family’s ability to be patient and understanding with their loved one is important.   

Work with Professionals to Make the Process Easier

Both Assisted Living and Memory Care communities have access to counselors and other professionals who can play a supportive role in helping a loved one move from one community to another.

Families should never feel they need to take the full responsibility for the task of moving a loved one from Assisted Living to Memory Care. Professionals have the training and experience needed to help make the process as smooth as possible.  

Visit the Memory Care Community before the Move

Many families have found it helpful to bring their loved one for a visit to the Memory Care community they will be moving to.  Many people fear change, so giving a loved one a chance to see the community and meet some residents and staff may ease a lot of anxiety.

When moving day comes, the new Memory Care resident will be more familiar with their surroundings and what to expect.

Provide Emotional Support

After the move to Memory Care, families should provide as much hands-on emotional support to their loved one as possible. It will be very reassuring to the older person that their family is there for them and is always accessible.

Visits, phone calls, flowers or other ways to express support will go a long way toward making their loved one feel more comfortable in their new home.

Build Relationships with Community Staff Members

By getting to know the caring staff members at a loved one’s Memory Care community, families are in the best position to ensure they will be getting the best care possible. Being involved with a loved one’s care plan and advocating for them will help the Memory Care experience be more successful.

What are Home Care Services?

Home Care services are essentially what the name implies. In this care type, an older adult continues to reside in their own home, but has professional caregivers come in on a regular basis to assist the senior with daily tasks.

The credentials and training of Home Care caregivers can vary greatly. Some offer simple companionship and light duty services, while others might be CNAs (Certified Nursing Assistant) or LPNs (Licensed Practical Nurse) who can provide more formal, medically based care. 

Home Care caregivers can perform a wide variety of support services, including:

• Light Housecleaning
• Laundry Services
• Errand Shopping
• Reminders about Taking Medications
• Cooking (Limited)
• Transportation (Limited)
• Help with Bathing, Dressing,  or Using the Restroom

In many cases, Home Care services are not provided 24 hours a day, 7 days per week. This means that an older person could go without the assistance they need for long periods of time, unless family members step in and perform those duties.

What is Assisted Living?

Assisted Living communities specialize in providing care to people who cannot safely live on their own anymore. These communities offer formal, 24-hour care for residents. Assisted Living services normally focus upon providing assistance and care with what are known as the Activities of Daily Living (ADLs).    

The most common Activities of Daily Living include:

• Bathing
• Dressing
• Using the Restroom
• Eating
• Moving About

Assisted Living communities are staffed by experienced medical professionals, such as RNs (Registered Nurses), CNAs (Certified Nursing Assistants) and other credentialed professionals.

Many communities offer a wide variety of amenities and services, such as:

Residents also enjoy building new friendships and spending time together as a community.

Determining Needs

One of the most important aspects of deciding whether an older loved one needs Home Care services or should reside in an Assisted Living community is based on their specific care requirements. Document carefully over a period of time what specific care your loved one needs.

 The following questions can be helpful to review.

• Is it safe for my loved to live at home?
• How many hours per day does my loved one need care?
• Do they require assistance with the Activities of Daily Living (ADLs)?
• Can they prepare meals?
• Do care needs require medical professionals? 
• Is there a need for medication management?

What is the Medical Expense Deduction for 2022 Tax Year? 

A tax deduction is available for any qualifying medical expenses that make up more than 7.5% of an individual’s adjusted gross income. However, only medical expenses that you paid during the 2022 tax year can be claimed.

For example, if your AGI was $50,000 last year, then you can claim the deduction for the amount of medical expenses that exceed $3,750.

Requirements for Assisted Living Tax Deductibility

To deduct certain medical expenses, an assisted living resident must meet the following criteria:

• A licensed health care practitioner, doctor, or nurse must certify that the resident is chronically ill; unable to perform a minimum of two activities of daily living (bathing, continence, dressing, etc.) on their own; or if they need substantial supervision because of dementia, Alzheimer’s disease, or another severe cognitive impairment for 90 days.

• A plan of care must be prescribed by a social worker, doctor, or nurse. Most Assisted Living communities develop a plan of care using a medical evaluation from a licensed healthcare provider, a needs assessment, and input from the resident or caregiver.

What Assisted Living Expenses are Tax Deductible in Tax Year 2022?

Medical expenses generally make up at least a portion of the monthly service and entrance fees at Assisted Living communities. For some residents, the entire monthly rental fee might be deductible, while for others, only specific personal care services would qualify for a deduction.

Although you can’t deduct general health expenses, such as health club dues or vitamins, you can deduct many types of professional medical fees. Some common assisted living medical expenses that can be written off include:

• Prescription drug costs and insulin.
• Health insurance premiums.
• Mental health expenses, such as the cost of therapy.
• Dental expenses, including dentures, fillings, x-rays, and other orthodontic appliances.
• Expenses incurred due to a medical need, such as travel to medical appointments and parking fees.
• Assisted Living entrance or initiation fees directly related to medical care, such as care plan development and assessment fees.
• Nursing services (even if the person performing the service is not a nurse).
• Meals and lodging at a hospital if the principal reason for being there is to receive medical care and as long as it costs $50 or less each night per person.

Transitioning Elderly Parents to Assisted Living  

Having a conversation with your loved one about the possibility of moving to a senior living community might be difficult. Your mom or dad might not be able to comprehend living somewhere else after many decades in the same home.

It is only natural that they will be apprehensive about it. Before you begin a conversation, it is extremely helpful to have the support of siblings or other family members ahead of time. Achieving a united front with close relatives will go a long way in a smooth transition for your mom or dad should the time come for them to move to an Assisted Living community.

Introducing the Idea

Introducing the idea of an Assisted Living community in a way that helps your loved one understand will provide some peace of mind. Because you can most likely expect some initial emotional resistance to the idea of a senior living community, look for an opportunity to bring the subject up when things are not going well at home.

Whether it be a problem with household maintenance, or an incident with an Activity of Daily Living such as being able to dress, bathe, or use the washroom safely, broaching the subject of a senior living community as an option might be better received when it is clear that your loved one is experiencing some difficulty. 

Arrange a Tour

Within a short timeframe after your loved one experiences a difficult episode, gently suggest a no obligation tour of a local senior living community. Even though a tour might be initially nerve-wracking for them, the staff of a high-quality community will help to put them at ease.

The professionals at Assisted Living communities are highly experienced and compassionate people, who understand deeply what seniors go through in their later years. With the help of the team at the senior living community, your loved one’s visit will be a pleasant experience and may put them in a better frame of mind regarding the idea of moving there. 

Managing Indecision

Should your parent eventually warm up to the idea of moving to a senior living community, it’s important to be prepared for any backtracking or resistance to the idea that might come up.

It’s critical to remember that this entire concept can be overwhelming to an older person. Nobody likes change and this is especially true for people in their later years.

During this period, it will be important to take the long view on such an emotionally charged process. If challenges at home persist, your loved one may be more willing to accept the idea over time.

Moving to a Retirement Community  

The good news is that despite a period of resistance, doubt and fear on the part of many seniors, moving an elderly parent out of their home and into a senior living community can be a very positive and life enhancing experience for them.

Not only is an older person relieved of the many duties of home ownership, but they are now also in a safe environment where they can enjoy many top amenities and activities with a host of new friends.