Residential Care
Residential care costs vary widely depending on the locale and services included. For example, facilities that offer supervision and personal service but no nursing care average $3,500 monthly and may add extra charges for hospice and dementia care. Additional pre-admission fees, sometimes called an administrative or application fee, can range from $250 to several thousand dollars.
Residential care for those ages 60 and older called Continuing Care Retirement Communities (CCRCs) includes a contract for continuing personal and medical care services and housing can range from about $100,000 for a studio apartment to $500,000 for a two-bedroom unit. Most residents must pay an initial entrance fee, which may be applied to owning the unit or be partially refundable. And additional monthly fees may be $3,000 or more. Some entrance and monthly fees cover all medical expenses, although most facilities charge for specific care and services received.
Most people must pay the costs out of pocket. Long term care insurance may provide some financial help for a small number of residents. And common sources of help for paying with long-term care — such as Medicare and Medicare Supplemental Policies (Medigap) — generally do not cover the cost of residential care. There is a limited amount of public funding available for some residents.
Learn the ins and outs of reverse mortgages, special considerations that apply to financial help from relatives, and potential tax credits.
Life insurance, annuities, and long term care insurance might help pay some of the costs of residential care.
Learn about potential help from public funding programs including SSI/SSP, Medi-Cal, Veterans Benefits, and Indian Health Services.
