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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

After more than 20 years of guiding families along their senior living journeys, we know cost can play a major role in choosing the right 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. 

How do families pay for senior living? 

Senior living can be paid for through a combination of assets such as a family's private income and investment funds such as retirement, social security, real estate and proceeds, savings, annuities, etc. In addition, this includes benefits the family is eligible for based on Long Term Care Insurance, Veteran's Benefits, life insurance, etc. Skilled nursing facilities accept the same methods at a higher cost or accept Medicaid.

What happens if our funds run out?

Our desire is to support families throughout their golden 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 is 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 is 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 can answer more questions about the four parts of Medicare..

 

Commonly Asked Questions About Paying for Commonwealth Senior Living

How much does senior living cost per month? 

Many factors determine how much a resident may pay to live in a Commonwealth Senior Living community, including where the individual lives, the level of care required, and health status. In general, however, you can expect a monthly rate of anywhere from $3,000 to $6,000. Price ranges among different types of care. 

What is the yearly price increase?

The senior living industry's national average rates increase by 5-7% on an annual basis. At Commonwealth Senior Living, we traditionally stay between a 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 Signature Programs residents and families value most. *Based on 2023 data.

Are the expenses tax deductible?

Yes, many aspects of Assisted Living and Memory Care expenses 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 given.

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 Senior Living'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.

How long does it take for Aid and Attendance to work retroactively? 

Applying for Aid & Attendance yourself can take up to one year on average to file as you will be put at the bottom of the list with room for missing parts of the application. Completing the process with Commonwealth Senior Living and our partners, ElderLife Financial Services, takes an average of 30-45 days for approval and can be ensured to be completed correctly. After moving into a community and being able to show exact monthly expenses, you will be able to retroactively recoup funds up to the date of your move-in.

Click the link below to try our online cost calculator to 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.

Compare My Costs

Pricing is always an important topic for the families we serve. If you would like to discuss your online cost calculator results with one of our community experts or have other pricing questions answered, click the link below to contact the community nearest you. 

Contact the Community Nearest Me

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