How to Pay for Assisted Living
Assisted living is usually paid for from several sources, not one. Here are the options families most often look at, and what to ask about each.
Personal savings and income
Most families start here: retirement income, Social Security, pensions and savings. Ask each community exactly what the monthly fee includes and what costs extra, so you can plan realistically.
Long term care insurance
If you or your loved one bought a long term care policy, it may help pay for assisted living. Read the policy for the waiting period, the daily benefit and what care levels trigger payment, and ask the insurer to confirm in writing.
Veterans benefits
Some wartime veterans and surviving spouses may qualify for a VA pension benefit called Aid and Attendance. Eligibility depends on service, income, assets and care needs, so check with an accredited veterans service officer.
Medicaid programs
Medicare generally does not pay for long term assisted living. Some states have Medicaid waiver programs that may help with care services in assisted living, usually not the room and meals. Availability, waiting lists and rules differ a lot by state.
Selling or using a home
Some families use proceeds from selling a home, or rent it out, to fund care. This is a big decision, so talk to a financial professional or elder law attorney before you act.
Help from family
Families often share the cost. Put any agreement in writing and keep it clear who pays what, to avoid stress later.
Where to get free guidance
- Your local Area Agency on Aging can explain programs in your area
- Your state SHIP program offers free Medicare counseling
- A senior living advisor can explain communities and their payment options, at no cost to you
Questions
Does Medicare pay for assisted living?
Generally no. See our guide on what Medicare does and does not cover.
Can I use more than one source?
Yes. Many families combine savings, insurance and benefits.
General information only, not financial, legal or insurance advice. Rules, prices and benefits vary by state and by policy. A licensed professional can explain what applies to you.