Rethinking Senior Care Pricing to Expand Access Without Sacrificing Quality

Balancing affordability with quality of care remains one of the senior care industry’s greatest challenges. For many older adults, however, affordability is not simply a financial concern. It is a determining factor in whether care is accessible at all. A Morningstar Center for Retirement & Policy Studies analysis estimates that about 43 percent of Baby Boomers will need long-term services and supports. The same study found that those who need such care are significantly more likely to face inadequate retirement savings than those who do not.

As demand accelerates with the aging Baby Boomer population, senior care providers must rethink how they structure pricing to preserve both quality and access. Read on to discover practical pricing strategies that can expand access, strengthen trust, and support long-term sustainability in senior care communities.

Defining Accessibility and Its Relationship to Pricing

Ann Collette, chief of strategy for Masonicare

For many nonprofit providers, affordability is tied directly to mission. Ann Collette, chief of strategy for Masonicare, says the organization’s nonprofit status shapes its approach to pricing. “As a nonprofit senior care organization, we define affordability differently than purely market driven providers,” she says. “Across the industry, affordability is increasingly understood not as the lowest monthly rate, but as long term value, transparency, and the ability to remain in place as needs evolve. For nonprofits, this definition is inseparable from mission, stewardship, and a commitment to serve residents over time, not just at the point of entry.”

The structure of a pricing model can significantly influence accessibility. All-inclusive and bundled pricing approaches have proven effective in reducing uncertainty and helping residents plan with confidence. These models also streamline decision-making and create a clearer alignment between cost and value. “Tiered care structures are also effective when levels are clearly defined and tied to meaningful differences in services, ensuring residents understand what they are paying for and why,” says Collette.

Transparency and Simplicity in Pricing

Holly Warner, regional director of sales for Masonicare

Selecting the right pricing structure is only part of the equation. Communities must also ensure that pricing is clear and easy to understand. At Masonicare, clarity is measured by whether residents and families can explain the pricing model in their own words. “If they cannot, that signals the need for greater clarity,” says Holly Warner, regional director of sales for Masonicare.

Frontline sales teams play a vital role in this process. Their feedback helps refine materials, identify confusion points, and determine where additional education or visual tools may be necessary.

Embracing a transparent pricing approach helps build trust while ensuring that residents have the flexibility needed to tailor care services to their needs. “Transparency builds trust by setting clear expectations early,” says Collette. “When families understand what is included, what may change, and why, they feel respected and informed.”

To ensure flexibility, the organization clearly outlines pathways for additional care or services. This ensures that residents understand their options, and they’re not surprised or pressured as their care needs change over time.

Pricing Strategies to Broaden Access to Care

Thoughtful pricing strategies can further expand access for senior care communities. For instance, move-in incentives and flexible entrance fee structures often lower barriers for prospective residents. “Supporting spousal accommodation by reducing or eliminating second person fees, waiving community fees, offering short term stays, moving fee incentives, and creatively working with families on timing or transitions can all improve accessibility without compromising service standards,” says Warner. In some cases, responsibly structured deferred fees may also help families manage the financial transition into senior care.

Education around government assistance programs can also make a meaningful difference. Communities that provide guidance on veteran benefits and other public resources help families uncover financial support they might otherwise overlook. “We proactively educate residents and families about available programs and assist with navigating eligibility and application processes,” explains Collette. “Incorporating these resources into financial conversations allows families to maximize available support and make more informed decisions.”

Cost-Saving Measures that Help Control Pricing

Kimberly Magalhaes, executive director of Masonicare

Managing expenses responsibly allows communities to minimize cost increases for residents. Operational efficiency, workforce investment, and strategic use of technology all contribute to sustainable cost control. Kimberly Magalhaes, executive director of Masonicare, points to coordination and retention as critical factors. “Reducing duplication across services, strengthening clinical coordination, and prioritizing staff retention and training all help control costs while improving outcomes,” she says. “Long-term partnerships and system-wide collaboration also allow mission-driven organizations to scale best practices without sacrificing personalized care.”

At the same time, disciplined decision-making is essential. Communities need to understand where to forgo short-term cost savings to prioritize thoughtful investment that drives the community’s long-term value. “Strategic spending in areas such as community programming, amenities, staff development, technology, and campus enhancements often leads to increased occupancy, stronger resident satisfaction, higher retention, and greater philanthropic and partnership support,” Magalhaes explains.

She cautions against indiscriminate cost-cutting, noting that affordability is best achieved when communities align their resources with meaningful improvements in resident experience and community value. “When investments are made with intention, they generate both social and financial returns, strengthening the community while creating sustainable revenue that ultimately helps keep care accessible for more individuals,” Magalhaes explains.

The Future of Affordability in Senior Care

Looking ahead, simpler and more transparent pricing models are likely to gain traction. Collette anticipates continued movement toward structures that emphasize value rather than complexity. Today’s consumers want clarity about what they’re paying and what they receive in return.

As expectations evolve, senior care communities must demonstrate a clear connection between cost and outcomes. Highlighting the full value of amenities, peace of mind, and high-quality care can help prospective residents better understand pricing and feel confident in their decision.

Paige Cerulli

Paige Cerulli is a contributing writer to i Advance Senior Care.