Daytona Beach Senior AdvisorHow do most families here pay for assisted living?
Privately at first, from Social Security, pensions, savings and the sale or rental of a home, sometimes with help from long-term care insurance or VA pension, with Medicaid or OSS coming later once savings are spent down.
In Volusia and Flagler a large share of retirees own their homes outright, often a condominium on the beachside or a single-family house in Palm Coast, Port Orange or Deltona, so the home is frequently the biggest source of care money.
How can we test whether savings will last?
Multiply the expected monthly cost by 24 to 36 months, compare that with the assets that can be spent without hurting a spouse, and subtract monthly income; if the money runs out inside that window, start the Medicaid or OSS path now rather than in a crisis.
| Hours of paid help per week | Monthly cost at $32/hour | Versus the $5,500 assisted living median |
|---|---|---|
| 8 | $1,109 | less |
| 16 | $2,219 | less |
| 24 | $3,328 | less |
| 32 | $4,437 | less |
| 44 | $6,101 | more |
| 60 | $8,320 | more |
| 84 | $11,648 | more |
| 168 | $23,296 | more |
Remember that care needs tend to rise: a quote today at one care level may be one or two levels higher within a year.
Will long-term care insurance pay?
Most policies pay a daily or monthly benefit once a doctor certifies that the insured needs help with two or more activities of daily living or has a severe cognitive impairment, after an elimination period that is often 90 days, and many cover licensed assisted living as well as home care.
Read the policy for the elimination period, the daily maximum, any inflation rider and whether it requires care from a licensed provider. Claims need paperwork from the facility, so ask early whether it handles insurance forms.
Should the family home be sold to pay for care?
That depends on whether a spouse still lives there and on Medicaid timing: the home is usually exempt for Medicaid while a spouse lives in it or the owner intends to return, but once sold the proceeds become countable, so get advice before listing.
On the coast, rising flood insurance and condominium assessments push some families toward selling sooner; renting the home can be an alternative that keeps the exemption while producing income.
Can a continuing care contract lock in future care costs?
In part: a continuing care contract trades an entrance fee and monthly fee for housing plus access to assisted living and nursing care, and some contract types limit increases when a resident needs more care; the protection depends entirely on the contract.
Volusia's two continuing care providers are in Orange City and DeLand. See life plan communities before assuming a contract covers future care.
At a glance
| Private payment gives you | Private payment does not give you | |
|---|---|---|
| Choice | Any licensed facility with an opening | A guarantee the money will last |
| Speed | Immediate admission without a wait list | Protection from rate increases |
| Later | A record of spending that supports a Medicaid application | Automatic Medicaid when savings end |
Sources: Chapters 408, 429 and 651, Florida Statutes; Florida Administrative Code chapters 59A-36 and 65A-2; publications of AHCA, DCF, OIR and the Department of Elder Affairs; and the CareScout and VA tables named on the page. See our editorial standards for how figures are checked.
