What’s the Difference between Assisted Living and Nursing Home Facilities?

When my Indiana clients come to us for crisis planning and a loved one needs to be transferred to a facility because they can not be kept at home any longer, the first question before facilities are researched, is whether assisted living or a nursing home facility is the right fit for the loved one.

Assisted living and nursing homes are two types of care facilities for seniors who need help with daily tasks. The main difference is the level of medical care and supervision that is provided to the residents. Nursing homes have more staff, including registered nurses, who offer round-the-clock care and rehabilitative services to residents with extensive medical needs or chronic conditions. Nursing homes are more of a hospital setting, with residents living in shared or single rooms.

Assisted living facilities offer a lower level of care, with more independence and privacy for residents who do not need full-time assistance. Assisted living facilities are primarily a residential environment, with different levels of medical attention depending on individual needs. For example, they may help with bathing, housekeeping, meal preparation, or transportation to doctor appointments.  Many assisted living facilities have many more hands-on activities for their residents such as music, games, art, religious services; however, nursing homes also provide many of these activities as well. 

What is the difference in cost? Typically, the cost of assisted living is in the range of $4500 and the cost of nursing home is usually double that, around $9,000; but these numbers can vary greatly.  Medicaid will help to cover the cost of assisted living. However, Medicaid services do not pay for room and board directly for people needing care in an assisted living facility. Medicaid will pay for nursing home care on an ongoing, long-term basis if there is a need. Medicaid pays 100% of nursing home costs in most cases if you meet eligibility requirements. Medicaid is a needs-based program that can pay for nursing home costs, including room and board, for eligible individuals who meet income, asset, and level of care requirements.  However, most, or all the monthly income of the nursing home resident must be paid toward the nursing home cost each month.

My team works with families on the best legal way to pay and protect assets and income whether it is a nursing home or assisted living situation.