Ask the Right Questions and Compare all the Costs

Compare service plans & pricing structures
Some senior communities charge an all-inclusive monthly fee for everything, including daily personal care and medication management services. Others offer a variety of service plans and fees, including an "independent" plan for those who do not need personal care services. Initially, the varied plans may seem confusing, but most communities offer the same basic services. They are simply bundled and priced differently.

The plan that is most cost-effective depends on the level of personal care services required daily. If the potential resident has multiple health issues, be sure to ask how much staff time is allotted for personal care and medication monitoring each day on the different plans.

Ask about ancillary charges
Ask for detailed service plan/pricing sheets, as well as a list of available ancillary services and their fees to accurately compare costs. For example, someone on an "Independent Plan" which includes two meals daily is able to "purchase" the third meal and someone on an "Assisted Care Plan" who needs additional help managing incontinence can pay for the Incontinence Plan separately.

Ask whether there is a real estate purchase
Most free-standing Assisted Living communities in New England are monthly rentals with residents signing a residency agreement/lease for one year and do not involve a real estate purchase. One exception is a Continuing Care Retirement Community (CCRC), which offers independent living, assisted living, and often a nursing home on one campus. A CCRC typically charges an entrance / endowment fee or involves a real estate "by-in" purchase.

Ask about one-time fees
Some Assisted Living residences charge entrance fees or endowment fees. Also ask about administrative, assessment or move-in fees.

Ask about financial assistance programs
An Assisted Living community may offer financial assistance programs to offset the cost of housing and/or personal care services, such as Medicaid and Section 8 rental assistance. Medicaid programs allow Assisted Living communities to accommodate low-income seniors, as well as seniors who "spend down" their assets while living in Assisted Living. Seniors must be both financially and clinically eligible to qualify for Medicaid. Assisted living communities that participate in a Medicaid program can walk you through the details. Click here for information about financial programs.

Review the new rules concerning tax deductibility of assisted living
Assisted living expenses may be claimed as an itemized medical expense and deducted from taxable income, with limitations. Be sure to talk to your accountant and click here for more information about Tax Deductibility.

Look into long-term care insurance
Your insurance agent or financial advisor should be able to point you in the right direction. A recent AARP survey showed that many people think they have long-term care insurance when they do not because they are confusing long-term care insurance with other types of coverage, such as disability insurance. Click here for more details about Long-Term Care Insurance.