8 Ways To Save on Your Parent’s Assisted Living Costs
Written by
Paige Cerulli
Edited by
Jenna Klaverweiden
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As older adults age, they may need extra support. Assisted living can be an excellent solution, since residents can get help with some daily activities while still living independently. If your parent is going through that transition, it can be a stressful time for them and your family.
While quality care for your parent is invaluable, assisted living does come at a price — and it can be hard to fit those costs into your budget. The National Council on Aging reports that the average cost of assisted living in the United States is $4,500 per month, or $54,000 per year.
Fortunately, there are numerous ways that you can save on assisted living costs for your parent.
Understand What Factors Affect Pricing
Before you start exploring assisted living options, it’s helpful to understand what factors can impact a facility’s pricing. Dharam Khalsa, CEO and co-founder of Mirador Living, explained that location, amenities, staffing and services provided can all affect costs.
He said that location tends to be the most significant factor, with assisted living facilities in areas with a high cost of living being much more expensive than those in lower cost of living areas. “Within a specific area, costs may be affected by the quality and quantity of staff, particularly medical professionals, the caretaker-to-resident ratio, and the variety of activities, services, and amenities offered,” Khalsa said. Avoiding facilities with upscale amenities, like new pools or fitness centers, can help save money.
Esther Cromwell, co-founder and president of Avendelle Assisted Living, recommended that when you start the search for assisted living for a parent, you should begin by assessing their care needs and identifying any specific preferences. Both could affect costs and pricing.
She noted that it’s essential to schedule in-person or virtual tours, since you can use the time to ask about included services, additional fees and future rate adjustments based on increased care needs. “This approach helps families get a clear understanding of overall pricing and make informed decisions that align with both care requirements and budget,” Cromwell said.
Explore Care Pricing Options
Khalsa explained that most assisted living communities split their pricing into the base cost for a room and an additional charge for the level of care required. The cost of care is usually determined by the number of hours of assistance a resident will need each month, he said.
“It’s helpful to understand your parent’s care needs ahead of time, as communities price their services based on this, and the costs can vary widely depending on the level of support required,” Khalsa said. “As a rough estimate, care typically adds about 25% to the base room rate. Memory care tends to cost around 40% more than standard assisted living.”
If your parent doesn’t have substantial care needs, they may be able to save money by choosing a facility that offers à la carte care pricing, rather than bundled service pricing, Cromwell said. With that type of pricing, your parent will pay only for the care that they need, rather than additional services they won’t use.
Understanding your parent’s current care needs can help give you a sense of potential costs, but it’s also important to consider potential cost increases as those care needs increase. Cromwell recommended that you discuss potential long-term care needs with staff. “Some facilities may offer reduced fees for residents who commit to longer stays, helping to mitigate future rate increases,” she said.
Strategically Choose a Room
Cromwell explained that room selection significantly impacts the total cost of assisted living. “Choosing between a private or shared room is one of the most impactful decisions; private rooms offer more privacy and personal space but generally come at a higher cost, whereas shared rooms are a more budget-friendly option for those willing to share with a roommate,” she said.
Cromwell explained that the size and layout of a room can also impact costs. Studios and one-bedroom layouts are usually more affordable than larger or more private two-bedroom options.
Additionally, the room’s location within the facility can affect pricing. “Rooms with scenic views, close access to dining areas, or added features like balconies or patios are often more expensive,” Cromwell said. “Choosing a room without these premium perks can be a simple way to save money if such features are not essential to the resident’s experience.”
Get Details on Hidden Fees
As you start to compare the costs of different assisted living facilities, it’s essential to get detailed information on the potential costs. Khalsa explained that some facilities aren’t always fully transparent about their cost structures. “Make sure to ask about hidden fees, as services like parking, Wi-Fi and room service are often not included in the base rate,” he said.
He recommended working with a local senior living advisor, who can help you get a comprehensive understanding of costs. “These advisors have in-depth knowledge of local facilities and can guide families through the options,” Khalsa explained.
Explore Different Locations
“Assisted living facilities in regions with lower housing costs, general expenses and property taxes tend to offer more affordable rates than those in high-cost urban or coastal areas,” Cromwell said. “This cost difference can be substantial, making certain regions much more budget-friendly without sacrificing quality of care.”
As a result, it’s possible to save money by choosing an assisted living facility in a more affordable area, but this is a decision you’ll need to carefully think over. Cromwell encouraged families to weigh the benefits of the potential savings with factors like proximity to loved ones, the climate and access to medical services. The assisted living facility needs to meet your parent’s financial and personal needs.
Negotiate Prices
“Negotiation can be an effective way to save,” Khalsa said. “Many communities are willing to offer a discount — typically between 10% and 15% — especially if they aren’t at full occupancy.”
He explained that it’s worth asking for a price reduction, especially if you can identify comparable facilities that offer similar services at a lower rate. Be sure to also ask if the community offers any price breaks for paying upfront or for referrals.
Explore Government Programs
Cromwell explained that government programs can potentially provide financial assistance with assisted living costs. “For example, veterans and their spouses may qualify for the VA Aid and Attendance benefit to help cover long-term care costs, and some states offer Medicaid waivers that cover a portion of assisted living expenses for eligible low-income seniors,” she said.
Cromwell noted that long-term care insurance can also be helpful, as policies will often cover some assisted living costs.
Plan Ahead for Cost Increases
“Assisted living costs typically rise annually, often in line with inflation,” Khalsa explained. Additionally, if your parent’s care needs increase, their rates will also climb.
Cromwell encouraged families to inquire upfront about the facility’s history of rate increases and policies on adjusting fees. “Understanding how frequently and by how much rates have increased in the past can help families anticipate future costs,” she said.
“To prepare, it’s a good idea to choose a community where the base costs are well below your parent’s monthly budget, leaving a cushion for these inevitable increases,” Khalsa said. If you plan ahead for future price increases and changing care needs, you can prevent future financial strain.
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