Paying for Assisted Living in California

The rising costs of elder care and healthcare, coupled with ongoing cuts made to many state and federal senior citizen programs, have a lot older adults worrying about their futures. For instance, the cost for assisted living in California is typically higher than most other areas of the United States, ranging in price from $1,000 a month or more.

Unfortunately, very few older adults can afford this, unless they have government-subsidized or other monetary help. If finding a facility for yourself or your loved one isn't taxing enough, understanding the financial responsibility is even more difficult if you don't where to look or what questions to ask.

Defining Assisted Living 

In the state of California, assisted living is a long-term care option for senior citizens needing help with various daily living activities, covering both their scheduled and unscheduled needs. Assisted living also comes under the guise of Board and Care or Residential Care. Services required by the California Department of Health Care Services and the California Department of Social Services in these facilities, include:

• 24/7 custodial care
• Recreational activities
• Supportive services
• Social services
• Meals
• Laundry and housekeeping
• Medication management
• Incontinency care
• Transportation

Residents live in single or shared apartment-style rooms with specialized amenities such as walk-in showers, wider doorways and emergency pull cords. Assisted living a great option for seniors who cannot live alone but who do not need the level of care offered by a nursing home. Care is typically provided by non-medical, certified caregivers.

Seniors needing specialized medical care, such as diabetic insulin injections or colostomy care, can contract with outside home health care agencies to administer these services, since assisted living facilities without licensed nurses on staff are legally not allowed to do so.

Paying for Assisted Living 

Besides the cost of care, the monthly fee or rent to live in an assisted living facility also covers room, board and accommodations. There are several ways to pay for assisted living care in California, depending on your financial situation:

• Private pay: Since Medicare does not cover assisted living, many people pay privately for this type of care. This is done though retirement savings or long-term care insurance. However, once a person's savings is exhausted, he or she will need to find other means.
• Medi-Cal: California's Medi-Cal payments are limited only to those who are eligible under the Assisted Living Waiver and reside in Fresno, Los Angeles, Riverside, Sacramento, San Joaquin and Sonoma counties. The care must be provided in a licensed home health agency and residents must be eligible for full-scope or share-of-cost Medi-Cal benefits. The key point with this program is that seniors have to be in need of nursing home care, but can live in an assisted living or residential care facility where the similar type of care is provided with an in-home caretaker. Individuals can also receive this benefit if they reside in public housing and receive care from a Home Health Agency.
• SSI: Public funding is available for seniors who qualify through Supplemental Security Income. However, they must live in a non-medical board and care or residential care facility in California. As of 2012, the maximum benefit is $1,110 for an individual and double that for a couple living in the same facility. It is important to note that not all assisted living facilities in California accept SSI payments and only allow residents who can pay privately.

Start Planning Now 

It's never too early to think about your retirement options. A financial advisor is your best way to go when looking at how to pay for your elder care. However, if you don't have time and need an assisted living facility sooner, shop around. Visit as many facilities as possible to get an idea of what you need and want. Make sure to ask questions.