Does Medicare Cover Independent Living Costs?
2024 is the year of Peak 65. That means 12,000 Americans will turn 65 every day, with over four million new 65-year-olds each year. If you are part of this group, you may be wondering about your living options.
Independent living in an excellent choice for healthy, active adults. But before you can move into your new home, you must be able to afford the cost of independent living.
Learn more about Medicare coverage details for senior living costs in this guide.
What Is an Independent Living Community?
An independent living community is an apartment or neighborhood serving seniors over the age of 55 who are healthy enough to live on their own but are looking for a lower-maintenance living option than homeownership.
Independent living communities offer concierge services for residents. For example, you may be able to access the following services at an independent living community:
- Dining and prepared meals
- Housekeeping services
- Social events and activities
- Transportation services
- Wellness programs
You cannot access personal care services in an independent living community. If you need help with bathing, dressing, or another activity of daily living, you must hire a home health aide or find an assisted living community.
Types of Independent Living Communities
When you picture an independent living community, you may think of a small condo or apartment building with a limited number of dwellings. However, this is not the only type of independent living community out there.
Retirement Communities
Retirement communities are similar to the traditional independent living model. The difference is that these neighborhoods are much larger. There may be many apartment or condo buildings in the complex.
These neighborhoods usually have a main clubhouse for gatherings, too. An owner's association often oversees the groundskeeping, maintenance, and social gatherings for the residents.
Subsidized Senior Housing Units
Subsidized senior housing units are for older adults looking for affordable independent living options. The trade-off for the lower cost is that services like housekeeping and meal preparation are not available.
This type of independent living community is overseen by the Department of Housing and Urban Development. Residents are only required to pay 30% of their adjusted gross income (AGI) for rent.
Continuing Care Retirement Communities (CCRCs)
CCRCs are not independent living communities themselves, but they may offer independent living as one of the many living options available on their campuses.
This type of retirement community may also offer assisted living and skilled nursing care services to residents. This option is ideal for older adults who want to live in the same community as their needs change.
Does Medicare Cover Independent Living?
No, Medicare does not cover independent living expenses. Original Medicare and Medicare Advantage plans only cover healthcare services, such as those deemed medically necessary by a doctor or other healthcare provider.
Medicare does not cover any long-term care options, including assisted living communities and nursing homes. We will talk more about the types of retirement living Medicare will cover in a moment.
Medigap plans do not cover independent living costs, either. These supplemental insurance policies will only cover healthcare services that your Medicare plan does not, such as dental or vision.
Retirement Living Options Medicare Will Cover
Medicare will cover skilled nursing in a long-term care community for a short period of time. For example, Medicare Part A may cover skilled nursing care at a Medicare-approved skilled nursing facility for up to 100 days.
However, to qualify for this benefit, you must have recently undergone surgery or some other qualifying hospital stay. Additionally, your need for skilled nursing care must be deemed medically necessary.
When searching for retirement living communities covered under Medicare benefits, remember that Medicare is still health insurance. Your stay in the community must be related to treatment for an illness or injury to qualify.
The Cost of Independent Living
The median cost of independent living in the US is $3,100 per month. That means some areas charge more and others charge less to live in an independent living community.
Independent living communities in California tend to charge more than the national median. The median cost of independent living here is $3,543. The exact price you will pay depends on a few factors.
One of the most important factors in the cost of independent living in California is local supply and demand. If many seniors are searching for independent living near you, you will pay less and vice versa.
How to Pay for Independent Living Expenses
By now, you may be wondering: If Medicare won't pay for independent living, how can I afford it? Here are some alternative options to consider to help you fund your retirement.
Social Security Administrative Programs
Supplemental Security Income (SSI) and Social Security Disability Income (SSDI) are available to older adults with qualifying medical conditions and/or low incomes.
These payments come directly to recipients. If you qualify, you can use the funds for whatever you want. For example, you could use your payments to pay for independent living.
Long-Term Care Insurance
Long-term care insurance is a type of private insurance you can pay into before you reach retirement age. Once you retire, the funds you paid into your insurance plan become available to you.
You can use these funds to help pay for types of care Medicare does not cover. For example, you can use your long-term care insurance payments to cover the cost of independent living.
Private Funds
Most older adults are eligible to receive monthly social security payments. You can start receiving these payments at age 62, though you cannot receive full benefits until you reach age 65.
If you do not have access to social security payments, consider funding independent living with the following resources:
- Personal savings
- Pensions
- Retirement accounts
Homeowners may also fund their retirement living through the sale of their property. You can also consider asking a relative to help you cover the cost of independent living.
Looking for a Retirement Community in Merced, CA?
The cost of independent living may be high, but you have options to help pay for it. Medicare may not cover long-term care, but social security administration programs, long-term care insurance, and private funds do.
Are you searching for independent living options in Merced, CA? Holiday The Hampshire is an exclusive senior living community with affordable studio, one-bedroom, and two-bedroom spaces.
Schedule a tour of your future home today!