What are the Payment Structures in Assisted Living Communities?

The structure of payment varies with assisted living communities. Some communities charge an all-inclusive flat rate to cover all services. Other facilities offer a flat rate for basic services and additional charges for special services like transportation and access to recreational activities.

Some even break down charges into sections based on the services they provide. You may find yourself paying separately for;

• Medication charges which may be broken down further into sections
• The level of care
• Incontinence fees
• Transport charges for attending sessions or appointments
• Bathing fees, and so on

In most cases, deposits and up-front fees will be needed. This is why it’s recommended to research and understand each community’s payment model before deciding which is best for you and your loved one.

The best way to benefit from an assisted living institution is to understand the factors impacting the costs. This is because their payment structures depend highly on the level of care you want your loved one to experience.

Deciding the location of the facility where your loved one will stay is also important. This should be somewhere close where you can regularly visit and offer your support. Check the median cost of care in various facilities to weigh your options.

Some of the various payment structures include:

1. The All-Inclusive Model: This billing method combines all the costs for rent, housekeeping, meals, transportation, personal care, security, laundry, recreational activities, etc., into one monthly bill. This is the most preferred structure since it’s simple and predictable. All-inclusive pricing means no level of care charges or hidden fees; all services and care is included.
2. The Fee for Services Payment Structure: In this model, residents pay a monthly flat fee for meals and rent. Every other service is charged separately. In such an A La Carte pricing model, you can also expect other extra charges for assistance, which you may incur hourly.
3. The Levels of Care Pricing Model: This is a tiered pricing plan with about three to four tiers consisting of a group of services your loved one may receive. Each tier offers several hours of care every month. They will assess the person to determine the level of care they require. The person will regularly be reassessed to ensure they’re placed at the appropriate level. You are billed according to your loved one’s care needs. The disadvantage is that your monthly bill a change when your loved one needs a higher care level.