BMA Emphasizes Need for Affordable Assisted Living


By Rick Banas, Vice President of Strategic Marketing at BMA Management

Blair Minton, Founder of BMA, and I had the privilege earlier this month of speaking at the national 2009 Advanced Sales & Marketing Summit for the Seniors Housing, Assisted Living and Nursing Care Industry. The conference was sponsored by the Assisted Living Federation of America and the American Seniors Housing Association.

One of the points that we tried to hammer home was the need for there to be a viable affordable assisted living option available throughout the United States.

According to information that was available earlier this year from Claritas, Inc., there are nearly 19 million people in the U.S. who are 75 years of age or older. Nearly 45% of these individuals – 8.5 million – live in households that have annual household incomes of less than $25,000.

When you consider that the average cost for assisted living tops $3,000 a month – $36,000 a year, those with less than $25,000 in annual household incomes are highly unlikely to be able to afford private pay assisted living.

To complicate matters, projections show that the number of older adults in our country will rise dramatically in the coming decades; yet most states have done little to plan for the impact that all of this will have on their state budgets.

The situation is different in Illinois, we explained, as the State has developed an innovative approach called Supportive Living. (Yes, we used the words “innovative” and “Illinois” in the same sentence).

The program benefits both the state and the older adult.

Illinois benefits because it saves money by giving those who need some assistance to maintain their independence but don’t require skilled nursing care an option to live in a less costly environment than a nursing home. The State estimates that it saves 40% to 55% of the cost of care each time someone selects Supportive Living over a nursing home.

The older adult benefits from being able to live in a much more highly residential environment while receiving the support and personal assistance that is needed. In addition, residents benefit from plenty of opportunities to enjoy the companionship of friends and neighbors and participate in a variety of social and recreational activities, which they would be much less likely to experience if they were struggling alone at home.

Among the reasons the program in Illinois works is that reimbursement levels are sufficient enough to attract providers while at the same time reasonable enough to provide a significant financial benefit to the State and the process for becoming a resident is not complicated.

A person must be 65 or older unless they are moving to one of the supportive living communities that are designed specifically for those 18 to 64 with a disability. While designed to especially serve low and moderate income seniors, those of all incomes can be accommodated.

Residents pay privately for as long as they have the financial resources to pay the monthly fee. Financial assistance is available from the state if the resident does not have the financial resources to pay the monthly fee so long as the resident qualifies for Medicaid.

Another wonderful aspect of the program, we explained, is its emphasis on personal choice, dignity, privacy and independence.

In the past 10 years since the first Supportive Living community opened in 1999, the number of Supportive Living communities has grown to 117 located throughout the State. Together, the communities house nearly 9,250 apartments.

Last year, the State estimates that 6,000 individuals on Medicaid benefitted from the program.

Our focus at BMA is on developing affordable assisted living communities. We are the largest provider of affordable assisted living in Illinois and the only company with communities located throughout the State. Last January, BMA was ranked as the 24th largest provider of assisted living in the country by Assisted Living Executive, the official publication of the Assisted Living Federation of America.

During 2009, we have grown by nearly 30% as we opened six new communities and completed the expansion of two communities. More than 88% of the senior living homes and apartments that we manage are affordable assisted living apartments designed for older adults of all incomes, including those on Medicaid.

Our hope is that we can work collaboratively with others to overcome the obstacles to affordable assisted living that exist in so many other states.

The obstacles include insufficient reimbursement rates; lack of funding during the period of time it takes for an older adult to be approved for Medicaid; case managers that make it difficult for persons to qualify for residency; and artificially low caps on the number of persons who can benefit from the program.

A recent example helps illustrate the challenges that need to be overcome. We were informed just last week about one state that in less than five months had reached its limit on the number of individuals who can qualify for financial assistance for assisted living. No one else can qualify until July 2010 at the earliest, even if someone on financial assistance moves out of assisted living. The result leaves those in need with two alternatives. They can move to a nursing home, which costs the state considerably more. Or, they can struggle alone at home, increasing the odds that they might need nursing home care or other health care services.

Access to affordable assisted living for all those in need seems to make a lot more sense to us.

What do you think?


All affordable assisted living communities managed by BMA Management, Ltd. are certified and surveyed by the Illinois Department of Healthcare and Family Services. All assisted living communities are licensed and surveyed by the Illinois Department of Public Health.

“BMA Management, Ltd. is the leading provider of assisted living in Illinois
and one of the 20 largest providers of assisted living in the United States.”

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Gardant Management Solutions has 20+ years of industry-acclaimed operational history in developing, managing and consulting for senior living, assisted living and memory care communities.