What Is The Cost Of Assisted Living And How
Do Residents Pay For It?
The cost of assisted living involves several aspects:
a rental component, food, basic services and optional services
and amenities. Currently, the pricing for most private pay assisted
living residences in Massachusetts range from approximately
$1,500 to $5,000 per month, depending on the size of the apartment
and the amount and type of services provided. The average one
bedroom apartment with services costs $3,200 per month. The
majority of assisted living residents in Massachusetts pay privately.
Depending on the nature of an individual’s
health insurance program or long-term care insurance policy,
some costs may be reimbursed. Medicare (the federal health insurance
program providing health care coverage for the disabled and
elderly) does not pay for the cost of assisted living. In Massachusetts,
Mass Health’s (Medicaid) Group Adult Foster Care program
(GAFC) will cover (at a set daily rate) some of the cost of
assisted living services for financially and clinically eligible
individuals. In addition, the Legislature funded a category
of Supplemental Security Income (SSI) benefits to augment the
room and board costs associated with assisted living, and when
combined with GAFC, makes assisted living a viable alternative
for some lower-income elders.
Additionally, there are government agencies such
as MassDevelopment (Massachusetts Development Finance Agency)
and MassHousing (Massachusetts Housing Finance Agency-MHFA)
which have proactively addressed the need for access to assisted
living. These agencies provide tax exempt financing for assisted
living housing development, and in return residences are required
to reserve at least 20% of their units for low-income residents
(individuals with incomes less than 50% of the median average
income). MassHousing’s Elder CHOICE program was created
specifically to “address the needs of frail elders by creating
a supportive environment that maximizes their ability to live
independently in a residential setting and reduces the need
for costly institutionalization”.
