With so many different types of long-term care available, it’s critical that you plan early. Advanced planning will help you secure your preferred care and ensure you can afford it when it comes time to receive services.
In-home care, assisted living facilities, and memory care facilities all carry different costs for Arizona residents. It can vary based on location, level of care, available services, and other factors.
Below, we’ll break down what you can expect to pay, compare different care costs, share what may cost extra, and outline steps you can take now to help you afford care in the future for you and your loved ones.
Why This Cost Comparison Matters in Arizona
As we get older, we have a lot more choices about where we want to receive care. The care setting you choose can affect both your monthly spending and long-term planning.
For example, many people think that aging at home is more affordable. You don’t have to pay the same monthly rates for facilities; however, you may need to pay for in-home caregivers, medications, home modifications, and more. The costs may end up being the same, if not more, if you receive services in an assisted living facility where those services are included in the cost of care.
To get a comprehensive picture of what care may cost, Arizona families should compare today’s rates with future care needs. Explore the cost of in-home care and assisted living facilities now. Know that these costs will continue to increase to keep pace with inflation. Additionally, consider what care you may need in the future, including memory and dementia care.
Remember, where you live and where you want to receive care matter. Metropolitan, suburban, and rural markets can have different costs. That will significantly change the financial picture, so it’s best to be clear about where your services are offered.
What Home Care Usually Costs in Arizona
CareScout estimates the average cost of a non-medical caregiver in your home is about $35 per hour. Assuming you secure care for 44 hours a week, that will cost more than $80,000 annually.
Hours drive the monthly total. Whether you need part-time support, daily visits, or near-continuous coverage will impact your total amount. Additionally, scheduling complexity, nights, and weekend coverage can all raise the real cost of home care.
Home care has increased about 3% year over year, so it’s important to factor in inflation when you are considering the cost of home care in Arizona.
What Assisted Living Usually Costs in Arizona
The monthly median cost of assisted living facilities in Arizona is $6,200, or about $74,400 annually, according to recent CareScout data. That typically includes living arrangements, personal care, and health services.
Care levels, apartment type, and amenities can all change that total. The more specialized services you need, the more expensive your assisted living will be.
While the cost of assisted living is estimated to have increased 5 percent year over year, it can still be more cost-effective than high-hour home care. The monthly and annual costs will be more affordable, as basic care needs are covered in the base price of assisted living.
Those who need additional care can also seek skilled nursing homes or memory care to keep them safe and cared for.
When Memory Care Becomes a Separate Cost Conversation
Memory care usually costs more than standard assisted living because the care that is provided is far more in-depth. Residents often need constant supervision, secure units, and specialized dementia programming, all of which can increase pricing.
Assisted living is best for individuals who need help with activities of daily living but don’t require constant care. Cognitive decline can change the best-fit care setting, making memory care a better option despite the increased cost.
What Pricing Usually Includes and What Often Costs Extra
As you decide between home care and assisted living facilities, it’s important to consider what is covered in the monthly cost and what will cost extra.
Home care primarily covers basic assistance with ADLs; however, depending on the service, it may also include meal planning and preparation, as well as light cleaning. Common additional add-on services are below.
- Transportation: Escorting individuals to appointments, events, errands, etc., and providing door-to-door service often carries an additional service fee.
- Shifts: Costs may vary based on minimum-hour requirements, overnight hours, weekend shifts, and more.
- Higher-acuity support: Specialized care that requires more hands-on assistance or medical training will cost more.
Assisted living often includes many basic features in the monthly fee, such as housing, utilities, meals, entertainment, and basic housekeeping and laundry services. You can add on additional services for a fee, including:
- Specialized care services like medication management, physical therapy, speech therapy, and more.
- Support with activities of daily living, like bathing assistance, incontinence care, etc.
- Care tier upgrades, including memory care, skilled nursing care, and more.
Before you decide on the type of care you or your loved ones would like to receive, make sure to ask what is included in the base price and what will cost extra, especially if you have pre-existing conditions. The following list can help you get a sense of what the facility or caregiver will offer.
- Medical services
- Care flexibility (hours, increased care needs, etc.)
- Transportation availability
- Personal care needs
- Dining considerations (meal prep/cooking, specialized diet restrictions, etc.)
Also consider whether you have special requirements that would make you feel more comfortable, such as limited visiting restrictions or specialized programming. The more you understand what is included in each service and what will cost you more to participate, the better you can compare quotes to get the best care for your budget.
How 24/7 Coverage, Medication Needs, and Mobility Support Change the Budget
There are many factors that can change your budget, so it’s important to understand your personal needs and the services you may require.
For example, around-the-clock home care can rival or even exceed facility pricing. If you want to age at home, that is preferable regardless of the cost. However, you may receive better care at a facility than at home, which could improve your quality of life.
Your mobility may also play a role in the cost of care. Those who need transfer assistance, are fall risks, or face mobility limitations will often pay more for care. They require more hands-on support to get around; otherwise, they may fall and injure themselves.
Additionally, even simple things like medication can impact your total cost. Reminders to take your medicine are often part of base fees, but more hands-on medication management will cost more. That would include getting the medicine and ensuring that it is taken properly every day.
Arizona Decision Framework: Which Option Fits Best?
For some, it can be difficult to determine which option is best. There are pros and cons to each. Many may default to cost considerations, but that’s only a piece of the puzzle.
First, you should consider care level and safety needs. If you need constant supervision, it may be more beneficial for you to live in a facility rather than at home.
Additionally, consider your support system. The risk for caregiver burnout is high. It can take a significant toll on your loved one’s mental, physical, and financial health to provide constant care. Even the support of home caregivers may not bring enough relief.
Consider service availability. Location factors matter. Those living in a metropolitan area may have more services and facilities available, while those in rural communities may have fewer choices.
There is no one-size-fits-all care choice, so it’s best to consult with your loved ones to understand which option is best for you and your needs.
Budgeting for Today’s Costs and Tomorrow’s Inflation
The cost of care continues to increase year over year, so it’s important to budget for potential care needs today to ensure you can afford it tomorrow. Tools like CareScout can help you understand the current median costs for various types of care. This can help you get an idea of what care may cost for you and integrate it into your budget.
Always assume there will be inflation. The Federal Reserve anticipates about 2 percent inflation annually, but some may plan for up to 4 percent to be cautious. How much inflation you plan for can impact the amount of care you can afford. Your funds may not go as far in the future if you haven’t factored in inflation in your financial planning.
Be sure to stress test your plans for longer care durations or higher-acuity needs. Explore how much you would need to save for two years of memory care based on current costs or five years in a nursing home.
If you’re not sure, consult with a financial planner and a long-term care insurance professional. They can help you understand different scenarios to ensure you’re planning for the unexpected.
Aligning LTC Insurance Benefits to the Care You’re Most Likely to Use
Long term care (LTC) insurance in Arizona is a great option to make long-term care more affordable. There are different plans available, so it’s critical that you pick the one that most aligns with the care you are most likely to need.
You can do that by considering the following.
- Choose a daily or monthly benefit that matches Arizona care patterns. If you don’t, you may have to cover the gap with personal funds.
- Select an elimination period based on savings and family support. Longer elimination periods may result in lower premiums; however, your out-of-pocket costs will increase.
- Use inflation riders to help benefits keep pace with future costs. That way, your policy will go further, even if you have to pay more each year.
- Plan for flexibility if your care setting changes over time. You may want to use home care services, but eventually your care needs may require more hands-on support. You want a policy that can account for all qualifying care scenarios.
Ask if you have questions and compare quotes to ensure you are getting the best value and policy benefits. LTC costs should help offset out-of-pocket care costs, allowing you the freedom to choose where you age.
Key Takeaways for Arizona Families
It’s important to remember that the cheapest option on paper may not stay the best option as your needs increase. You may pay a lower premium, but your care options may be limited. Comparing the included services in home care and assisted living can help you avoid misleading cost assumptions. If it seems too good to be true, it probably is. Matching insurance benefits to likely care use can lead to stronger long-term planning, allowing you the flexibility to secure the care you want when you need it.