The most expensive and cheapest states for the elderly

According to the American Health Care Association, more than 800,000 adults live in assisted living facilities in the U.S., but the number of facilities and average costs vary greatly by state. This issue is becoming increasingly important among an aging population, the number of which has been growing rapidly since 2010.

To examine what constitutes the cost of assisted living, QMedic analyzed data from the Genworth Cost of Care Survey and the National Center for Assisted Living.

People aged 65 and over will now make up 16.8% of the total population in 2020. Many members of this older group need additional support to live comfortably and safely, even though most have expressed a desire to age in place. A 2021 national survey conducted by AARP found that approximately 3 in 4 respondents age 50 or older would like to stay in their current homes as long as possible. Some may have this option with the support of family or friends, but others may need the help offered by a residential facility such as a nursing home.

An assisted living facility helps residents with daily activities such as bathing, dressing or taking medications, but does not cover some of the more specific services available in a nursing home. Nursing home services focus more on medical care such as physical, occupational or speech therapy. This is a long-term solution for those who want to stay at home, but it comes at a cost. This type of care usually costs more than living independently at home, but is still cheaper than a nursing home.

According to Genworth’s 2023 Cost of Care Study, the average cost of assisted living in the United States is $5,350 per month or $64,200 per year for a private one-bedroom apartment. The cost of these facilities increased an average of 18.89% from 2021, although only 1.36% from 2022 to 2023. This increase was due to inflation and labor shortages, Genworth noted.

Where you live can affect the cost of care

Nursing homes and their associated fees are regulated at the state level, so the cost and scope of services vary greatly depending on where in the country you live. When a person signs up for a facility, there is usually a moving fee and monthly rent involved. Residents also pay for extras such as physiotherapy, laundry services and transportation.

Charges may also arise if a person needs help with everyday activities such as bathing, dressing or using the toilet. Some facilities also offer memory care programs for people with Alzheimer’s disease or dementia, which also incur additional fees. All of these activities require caregivers that benefiting communities currently lack, and the confusion also hurts residents’ pockets.

Four out of five assisted living communities reported they faced staffing shortages in 2021, according to a survey of 122 assisted living communities by the American Health Care Association and the National Center for Assisted Living. As a result, many communities began offering higher wages and more benefits to attract skilled workers, raising costs for residents.

Another factor to consider when calculating your bill is the cost of living in the state where the facility is located. Cost of living is the amount of money people need to cover basic expenses such as food, transportation and health care, all of which are provided by a care facility. The higher the cost of living in a given state, the higher the facility rate typically is.

Washington tops the list of the most expensive assisted living costs, averaging $9,563 per month and just 16 beds for every 1,000 adults over age 65. This isn’t surprising considering the district has the second highest cost of living care among U.S. states. Hawaii, which has the highest cost of living index of all states, ranks second in assisted living costs at $9,340 a month and just 17 beds for every 1,000 adults over age 65. Overall, coastal states have the highest costs, with several Northeastern states topping the rankings, Alaska ($7,250 per month), California ($6,250) and Washington ($6,138).

On the other hand, Mississippi boasts the lowest assisted living costs for seniors, at $3,800 per month and 13 beds for every 1,000 adults over 65. The state is also the cheapest place to live when considering the cost of living. Georgia comes in second at $4,120 per month and 20 beds per 1,000 adults over 65.

A critical issue facing both the senior living community and facilities themselves is the number of available beds competing with growing needs. In fact, nationwide, there are only 43 licensed nursing home beds for every 1,000 adults over 65. This problem is only expected to get worse. According to the Census Bureau, one in five Americans will be of retirement age by 2030. The challenges of caring for an aging generation extend beyond this group, as their effects will impact policymakers, health care providers and families across the country.

How to prepare for long-term care

Given the significant costs of living in care, paying for these services is a challenge for many families. Sometimes long-term care fees can be unpredictable, taking into account events such as falls or unexpected illnesses. Generally speaking, the level of help needed will vary from person to person and can often change over time.

It’s best to be prepared by knowing what levels of care are offered at each facility and how much each will cost. However, there are some misconceptions about who pays for assisted living. While Medicare and Medicaid may help cover some of the costs of facility-based care, they will not cover the cost of room and board. Veterans can receive support through VA health care, but only for those who enroll. However, for most people, assisted living costs are covered by a combination of personal assets, savings and insurance benefits.

The best way to plan for senior living is to start before more care is required. Planning ahead gives aging people the freedom to make decisions about their future before needs become urgent. Many of the services sought by seniors can be provided through home care. Meals, housework, medication management and home safety functions can be provided without having to move. This can often be the most convenient option for older people who need support.

People who live alone, are more advanced in age and have a history of chronic disease or disability are more likely to need care in residential settings. Research by the Department of Health and Human Services has found that more than half of people who turn 65 will develop a disability that requires long-term care services, which means lifestyle changes or additional supports may occur sooner than many Americans he expects it.

Story editing by Carrena Jao. Additional editing: Kelly Glass. Copy editing: Tim Bruns.

This story originally appeared on QMedic and was produced and distributed in partnership with Stacker Studio.