Assisted living costs increase 15% from 2004

Assisted living costs in the U.S. increased 15% in the past year, according to the 2005 MetLife Market Survey of Assisted Living Costs. The average monthly base price rose from $2,524 in 2004 to $2,905 this year, or $34,860 annually. The highest cost was reported in Boston at $4,629 per month, while the lowest was Jackson, Mississippi at $1,642. The study was conducted for the MetLife Mature Market Institute® by LifePlans, Inc.

“As the population ages, assisted living is fast becoming a viable and often preferred option for those who are relatively independent, but who need some supportive services and social interaction,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute.

“The cost of care in an assisted living facility is rising rapidly and in many areas, is outpacing inflation. With 15% yearly increases, this type of living arrangement may be out of reach for many people,” Timmermann added. “In addition, fees sometimes added to the monthly base cost for services, such as meals delivered to the living quarters and dementia care, may add up, and should be researched carefully.”

Assisted living is defined as a housing option for older adults promoting independence and autonomy while also providing services to assist aging individuals with daily living. Facilities can range in size from a small house to a large apartment-style complex, though most have between 25 and 125 units.

According to the Assisted Living Federation of America, more than one million Americans live in 20,000 assisted living residences. The typical resident is a woman in her 80’s who is either widowed or single. The majority of those in assisted living facilities pay privately or through a long-term care insurance policy. Assisted living facilities traditionally have not been funded through Medicaid, though a number of states have begun covering some services through Medicaid waiver programs. Currently, no federal quality standards exist for assisted living and licensing varies from state to state.

Services included in the base price of an assisted living facility usually include two to three meals per day, assistance with Activities of Daily Living, social activities, medication management, laundry and housekeeping. Additional fees may be charged for services such as additional personal care, laundry needs over and above the basic service, meals delivered to the living quarters and dementia care.

The MetLife Market Survey of Assisted Living Facilities was conducted in August 2005 by telephone in 87 major markets in all 50 states and the District of Columbia. Ten facilities, or 15 percent (whichever was greater), were surveyed in each market, except for Washington, D.C., where only five were polled. All facilities surveyed were licensed according to each state’s standards for licensure. These included freestanding as well as multi-level complexes and did not include continuing care retirement communities.