Tag: assisted living

As the population ages, the demand for senior living services also increases, including assisted living. Assisted living provides care for older adults needing assistance with activities of daily living (ADLs), usually bathing, dressing, feeding, and medication management. In the United States, assisted living costs vary according to the type of community, location, demand, size, level of care, amenities, and other services provided. The national average cost of assisted living in the U.S. is around $6,077 monthly, per the Genworth Financial and Care Scout Survey in 2025. 

State Variations

While the national median costs around $6,077 per year, assisted living costs in each state vary due to several factors. These include the state’s geographical location, demand, availability of communities, and cost of living. Costs usually range from $4,481 as the least expensive to $11,650 for the most expensive. 

• Low-cost States 
  • Low-cost states, usually those with a low cost of living, including South Dakota, which offers an average of $4,481 per month for assisted living, tend to have more affordable options. Additionally, Louisiana also offers an average of $5,253 per month for assisted living, which is relatively lower than the national average. 
• High-cost States
  • On the other hand, high-cost states, like Hawaii and California, have higher rates ranging from $7,571 to $11,650 monthly. Highly urbanized states, like New York, also offer higher costs at $9,244 per month. These are heavily influenced by factors including high cost of living, high demand due to a high number of the aging population, and geographical location. 
• City-Specific Costs
  • In each state, assisted living costs in each city may also vary, especially those with a combination of urban and suburban areas. For example, Maryland’s state average often costs more than the national average. However, some cities, like Cumberland, may have lower costs. 

Cost Breakdown

• The monthly base fee for assisted living usually covers:
  • Housing – Includes private or shared living spaces. 
  • Meals – Typically three meals a day, with a variety of dining options that can accommodate special diets. 
  • Utilities – Services, including electricity, water, and gas, are usually covered. 
  • Housekeeping – Regular maintenance. 
  • Activities – Communities usually conduct activities, social events, and fitness classes. 
• Level of care
  • The higher the level of care needed, the higher the rates are. 
• Amenities and Add-Ons
  • Luxury communities often provide a variety of amenities and services that come with a cost. These include a spa, gourmet dining, and specialized therapies. 
• Move-in Fees
  • Most communities require a one-time fee for reserving a spot, typically ranging from $1,000 to $5,000. 

All-inclusive vs A la Carte Pricing

Assisted living communities utilize different pricing models for their services. 

• All-inclusive Pricing
  • Usually includes most services in a bundle offer, allowing predictability in planning. 
• A La Carte Pricing
  • This pricing model charges individually for each service, allowing flexibility.

How Families Pay for Assisted Living?

There are several ways older adults and families can pay for assisted living, including:

1. Private Pay – this is the most common way for covering assisted living costs, but it can deplete funds easily, especially without proper planning. 

• Personal Savings and Retirement Funds
  • Older adults and families mostly rely on savings, pensions, Social Security income, or retirement accounts. 

2. Real Estate Strategies 

• Selling a House – usually, to fund assisted living and allow downsizing, older adults and families sell their homes.
• Renting Out Property – a way to generate passive and consistent income, especially for those who don’t want to sell their homes. 

3. Insurance Options

• Long-Term Care Insurance – Depending on the policy, long-term care insurance can cover assisted living costs. 
• Life Insurance
  • Living Benefits – For the terminally ill with insurance, selling a policy back to the company for 50 to 75% of its value may help offset costs. 
  • Life Settlements – Selling a policy to a third party for 50 to 75% of the death benefit. 
  • Accelerated Death Benefits (ADB) – Tax-free advances, around 2 to 3% of the death benefit monthly, for policyholders with complex needs. 

4. Government Programs

• Medicaid – Usually covers care services, including medication management, ADL support. However, the board and room are not covered. 
• Medicare – Room and board are not covered, but medical services, like physical therapy and short-term skilled nursing, are covered. 
• Veterans Benefits – Eligible veterans or surviving spouses receive up to $2,100 per month from the VA’s Aid and Attendance benefit program. 

5. Other Financial Strategies

• Annuities – Provide steady income, especially after an upfront investment. 
• Reverse Mortgages – Allow older adults and families to access home equity without selling. 
• Shared Accommodations – Instead of private accommodations, opting for a shared room may help reduce costs. 

Strategies for Managing Costs

• Research and Compare – visit and tour several communities, and research the pricing model that best adheres to your needs. 
• Use Cost Calculators – Trusted industry providers often have a cost calculator that may help with estimating expenses, allowing adjustments for long-term planning. 
• Leverage Community Resources – Non-profit and mission-driven, as well as smaller communities, may offer lower rates. 

The cost of assisted living in 2025 is around $6,077 monthly; however, costs vary by state, with prices ranging from $4,481 to $11,650 per month. Aside from monthly base fees, older adults and families may also need to cover move-in fees, escalating level of care, and in some instances, extensive amenities. Assisted living communities also charge older adults and families, depending on the pricing model they use, to ensure their needs and preferences will be met. Older adults and families may also utilize various funding options, aside from their own resources, to cover assisted living. Since costs vary widely according to the state and providers, it is highly recommended that older adults reach out to local agencies and communities for precise quotations.