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Commonly Asked Questions About Paying for Senior Living

By: Commonwealth Senior Living / 10 Feb 2023
Commonly Asked Questions About Paying for Senior Living

From our experience guiding and supporting families over the years, we know cost can play a major role in choosing the right senior living community. One of the most common questions we're asked is, "What happens if our funds run out?" We strongly believe in open and honest communication and are committed to working with families to find every resource available to support them. Sometimes seniors do outlive their resources, and if a transition is necessary, we'll be there every step of the way. In addition to this answer, we want to make sure you have all the answers to your questions about paying for senior living:

What does private pay mean?
Private pay includes a family's private income and investment funds such as retirement, social security, real estate and proceeds, savings, annuities, etc. In addition, this also can include benefits the family is eligible for based on Long Term Care insurance, Veterans' benefits, life insurance, etc.

What happens if our funds run out?

Our desire is to support families throughout all their sunset years, and we'll do our best to explore every option available to support them should they outlive their resources. This "How Long Will My Money Last" calculator can help you get a quick estimate of how long your money will last based on your current savings and financial situation.

What is the difference between Medicare and Medicaid?
Medicaid: A state and federally funded program for low income and minimal asset seniors. The income threshold varies state by state, and typically only covers long term skilled nursing environments in an institutionalized setting with a roommate.

Medicare: A federal program, not a benefit source, afforded to all seniors 65+ depending on their selected plan. It doesn't pay for any long-term residential senior living care regardless of the type. It pays for up to 20 days per calendar year in a skilled nursing rehabilitation setting following three days of a hospital stay. Retire Guide's Essential Medicare Facts answer more questions about the four parts of Medicare.

Commonly Asked Questions About Paying for Commonwealth Senior Living

What is the yearly price increase?
The senior living industry national average rates increase 5-7% on an annual basis. At Commonwealth Senior Living, we traditionally stay between 3-5% annual increase, depending on the cost of senior living, market conditions, and geographic locations. We pride ourselves on proposing the bare minimum annual increases to include upgrades for associates, amenities, and programming our residents and families value most. *Based on 2021 data

Are the expenses tax deductible?
Yes, there are many aspects of Assisted Living and Memory Care expenses that can be. Please consult your tax professional for more details.

Are you locked into a yearly contract or is it month-to-month?
At Commonwealth Senior Living, residents can stay as long as they like with our month-to-month contract, or at any time choose another route with 30 days notice.

What is a community fee and what does it cover?
A community fee is a one-time, non-refundable fee paid upon move in by every resident. This is a customary fee within the monthly rental senior living industry and can range from a couple of thousand, up to one month's rent.  At Commonwealth Senior Living, roughly half of this fee is used to make your suite or apartment brand new again when you leave, and the remaining is used for community wide upgrades to programming and common areas based on what residents share with us they value most.

What is Commonwealth's Veteran's Rate Lock and who qualifies?
This is our commitment to honor veterans and their families who have fought for our freedom. For any veteran and their spouse, the daily suite rate will be locked at the point of entry for two years as our thank you to them.

We're committed to transparency in all areas, especially our pricing and explaining what it includes. Our cost calculator can help you compare the cost of living at home with the cost of moving into a senior living community near you. It shows the price for the base rent of the suite you choose and the first level of care.

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