Why Doesn’t Insurance Cover the Cost of Assisted Living?

The services offered at assisted living facilities fall under the umbrella of non-medical care. Though their services can drastically change an individual’s quality of life, an individual who goes to an assisted living center is still independent to some degree. Medication reminders, aid with activities of daily living (ADLs), and a healthy social environment assist the individual, but they could technically survive without these services. What this means is that insurance companies do not see the services as a medical necessity. Medical necessity is an important term when it comes to insurance coverage, and in the eyes of an insurance company assisted living are more of a luxury than a need. This is why most insurance policies will not cover assisted living.