Author: Lauren Thomas
Reviewed By: Rachel Rose
When money runs out for assisted living, the facility typically discharges the resident. Fortunately, seniors and their families have several options for paying for services, even if their monthly income doesn’t cover their bills. Understanding the cost of assisted living and exploring various payment options can help prevent service disruptions.
Nationally, assisted living facilities charge a monthly median rate of $4,500. However, this rate varies considerably depending on the city and state you live in. For example, in New Jersey, assisted living communities charge a typical monthly rate of $6,495, but in South Carolina, rates come in well below the national norm at around $3,612. Similarly, a resident in Jefferson City, MO, pays approximately $2,075 per month for residential care, while rates come in at a much higher baseline of $8,075 in Ithaca, NY.
Assisted living facilities provide a valuable service by keeping older adults safe and comfortable when they can no longer care for themselves. For that reason, it’s easy to forget that most assisted living facilities are businesses that exist to make a profit. An occupied bed is valuable when filled. However, cash flow decreases if a bed is vacant or being used by a non paying resident. Upon moving into an assisted living facility, a resident signs a contract that details their monthly fees and payment due dates. The contract also outlines how the facility handles nonpayment and evictions.
Regulations vary by state, but all states allow assisted living facilities to evict residents due to nonpayment. In California, for example, assisted living facilities can begin the eviction process when a resident doesn’t provide payment within 10 days of the due date. In Delaware, state laws allow assisted living facilities to discharge residents when they don’t pay their bill after “reasonable and appropriate notice.”
If you run out of money for assisted living, the first step is to contact your local long-term care ombudsman. The ombudsman helps you understand the eviction process in your state and explore options for covering care expenses. You may have more options than you realize, such as Medicaid programs, veteran’s benefits, reverse mortgages or cashing in on your life insurance policy. The ombudsman can also connect you with local community-based resources and professionals who help you make sustainable long-term care decisions.
