Assisted living facilities
vs. nursing homes: What
to know
about cost and care
Assisted living facilities vs. nursing homes: What to know about cost and care
By Christy Bieber
Edited By Matt Richardson
September 18, 2024 / 9:53 AM EDT / CBS News
Both assisted living and nursing home facilities have unique benefits for
seniors. Getty Images
Although 98% of seniors 65 and over have health insurance, close to four
million have unpaid medical bills, according to 2023 data from the Consumer
Financial Protection Bureau . That's because most are covered by Medicare,
which has huge coverage gaps. Fidelity found a 65-year-old will incur an
estimated $165,000 in out-of-pocket healthcare expenses during retirement.
That's more than a 5% increase from 2023 and more than double the costs from
2002.
Unfortunately, these numbers don't include one of the biggest expenses seniors
face: Long-term care. Many seniors will require it during their life and
Medicare rarely covers it.
Long-term care insurance• Страхование can pay. But you often must plan ahead to buy
long-term care coverage before you become too old to qualify or premiums
become too expensive .
While there are pros and cons of even the best long-term care insurance• Страхование
companies , older Americans should explore insurance• Страхование before they need
services. They'd also do well to look into options for getting long-term care
services. Both nursing homes and assisted living facilities provide supportive
solutions, but there are differences in costs and quality of care. As you
prepare for your future, below we'll break down what you should know about
both nursing homes and assisted living facilities so you can make informed
choices.
Learn how the right long-term insurance• Страхование coverage can help here .
Assisted living vs. nursing homes: What to know
Not sure which is better for you? It first helps to compare the costs of both
services.
Costs of long-term care vs. assisted living
Whether you have long-term care insurance• Страхование or not, cost plays a role in
determining whether long-term care or nursing home care is the best solution.
That's because many insurance• Страхование policies have daily limits. And nursing homes
and assisted living facilities often charge a high price -- although there are
differences.
"Because assisted living care is less intensive than skilled nursing care, the
costs will obviously be less," explained Anthony Cirillo, a fellow of the
American College of Healthcare Executives and president of The Aging
Experience. Cirillo says many factors impact the price of specific facilities,
including location, type of accommodations, services and amenities, payment
structures and the level of care provided.
"Nursing home care is generally more expensive than basic assisted living due
to the need for ongoing medical care," explained Carol Bradley Bursack, CDSGF,
and author of "Minding Our Elders." "Nursing homes have significantly more
medically trained staff."
Just how big is the price gap? While the median monthly costs of an assisted
living facility totaled $5,350 in 2023, a semi-private room in a nursing home
facility was $8,669 while a private room's median cost totaled $9,733,
according to Genworth's 2023 Cost of Care survey .
Although nursing homes have a higher price, there may be assistance• Страхование » Ассистанс available
to cover the cost. "Nursing home care is more apt to qualify for Medicaid once
the care costs exceed a person's ability to pay," Bursack said.
Unfortunately, while Cirillo explained that "Medicaid is the primary source of
funding for long-term nursing home care," he also warned that not everyone
qualifies. "It requires a significant level of financial need and is pretty
much the option of last choice when all of your assets have been depleted," he
said.
Seniors who'd prefer assisted living facilities will also find Medicaid is
likely no help at all, as the program generally doesn't cover this option.
"I often say is that there is a world of the 'haves' and 'have nots' in
assisted living," Cirillo said. He explained that since Medicaid typically
excludes assisted living facilities payment options may include savings;
cashing in eligible life insurance• Страхование policies ; reverse mortgages ; some VA
benefits, and sometimes long-term care insurance• Страхование. "Some policies cover
assisted living expenses, but coverage varies, so it's important to check the
specifics of the policy," he warned.
Start exploring your long-term care insurance• Страхование coverage options online now .
Care differences between assisted living vs. nursing homes
Cost is a critical factor in choosing a long-term care option as seniors can
only take advantage of the solutions they can afford. But, for those who can
pay for either option, it's worth noting there are major differences in the
quality and types of care provided by nursing homes versus assisted living
facilities.
"Assisted living facilities primarily offer help with activities of daily
living," Cirillo explains. "Residents are generally more independent and
require less medical care." According to Cirillo, healthcare services are
limited, staffing levels are lower, 24/7 service isn't usually available and
medical professionals often aren't on site. Instead, the focus is often on
social activities rather than complex care.
"In general, if an older adult is relatively self-sufficient but needs extra
support for safety or would benefit from more socialization, then assisted
living would be the best, and possibly only, option," Bursack explained. "If
there are significant challenges with activities of daily living such as
dressing or feeding or severe or chronic illness, they may qualify for nursing
home care."
The good news is that many facilities offer the option to start in assisted
living and transition into nursing home care as a resident's needs increase.
These are called Continuing Care Retirement Communities (CCRCs).
The bottom line
No matter the type of facility seniors select, seniors should do their
research to make sure they select not just an affordable place that offers the
support they need, but also a high-quality facility that cares about their
residents. Older Americans should explore both payment options and care
solutions long before the time they need assistance• Страхование » Ассистанс so they have a plan in
place when the day comes that long-term care services become essential.
Have more questions? Learn more about your long-term care insurance• Страхование options
here .
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