If you’re considering whether assisted living is right for you, you’ve likely asked yourself how to pay for assisted living. When you’re equipped with the right knowledge, you can make an informed decision, thereby making paying for assisted living nothing but smooth sailing.
At its worst, if you don’t have the right information, you could find yourself in a pickle with how to pay for, let alone qualify for assisted living.
Our senior care team put their heads together and researched some of the many financing methods and options available for seniors and their families. What resulted is this article all about how to pay for assisted living.
In this article, we’ll discuss the following topics:
- Common sources of funding that can help pay for assisted living
- Private-pay and public-pay options for assisted living
- How to make the most of your budget when paying for assisted living
- Tips for paying for assisted living and making the most of your payments
- The benefits of speaking with senior care experts for help with assisted living payments
Grab your favorite beverage, and make yourself comfortable. This is all about how to pay for assisted living.
How to pay for assisted living: 5 common sources
| 1. Private savings (like personal savings, income, and pension plans) 2. Physical assets (like homes, insurance policies, and retirement accounts) 3. Veterans benefits 4. Public assistance (like Medicaid) 5. Social security (and other supplemental benefits) |
Options for paying for the cost of assisted living
As you learn about options for paying for assisted living, you’ll likely come across a number of both private- and public-pay options. Most families use private funds to pay for assisted living.
Funds like personal savings, pensions, retirement accounts, or a combination of private investments are all fair game. Some public health insurance policies — like Medicaid — can help cover some assisted living costs.
But, Medicaid is reserved for those with limited income and resources, so it shouldn’t be relied upon as a primary source for funding assisted living.
As you consider whether private-pay or public-pay options are best for you and your loved one, consider which type of services, features, and care you and your loved one prefer.
Also, consider which combination of the below-mentioned options for paying for assisted living you prefer:
- Private assets: assets like home equity, retirement accounts, and life insurance policies
- Private health insurance policies: many long-term health insurance policies can cover some of the costs of long-term care.
- Private savings: personal savings, income, and pension payments can help fund the cost of assisted living.
- Veterans benefits: each benefit plan comes with different stipulations and applications, so check in with the Veteran Affairs (VA) organization or VA health team to determine which plan is best for you and your loved one.
- Public funding: Medicaid — and other community-based resources and services — can help you find care in an assisted living community (versus, say, a nursing home).
Each state will have different regulations about how to use private-pay and public-pay assets. So, you’ll want to check in with your local municipality to determine how, when, and where funds can be applied for your assisted living needs.
To paint a clearer picture of your funding options, let’s dive a little deeper into private- and public-pay assisted living funding options.
Private-pay and financing options for assisted living (Medicare and more)
Private-pay options include any options that are not government-funded. Many seniors pay for basic services, monthly costs, and programs that help them fulfill activities of daily living (ADLs) like bathing, grooming, and medication management through the following private funding sources:
- Private insurance: You may be able to claim services like hospital stays, medical procedures, and other medical care services with private insurance like Medicare and long-term care insurance.
- Life insurance policies: selling a life insurance policy to a third party can free you up to buy a long-term care benefit plan. Doing so will allow you to keep some of the death benefits of the policy. What’s more, you can also cancel your life insurance policy if needed in exchange for the remaining cash value on the policy. Doing so will mean you will let go of ownership of the policy and not receive any benefits upon death.
- Home equity: Loans, mortgages, or home sales are all fair game when it comes to funding assisted living costs. We recommend checking in with a financial advisor, as they can give you more specific information about the terms and conditions involved with using home equity for medical services.
- Social Security: While not as comprehensive as other financing options, Social Security can foot some of the bill for assisted living. Programs such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and optional state supplements can also help cover the costs of assisted living.
Private-pay options can help cover the bulk of the cost of assisted living. That’s why it’s important to consider all your options for private pay-related funding.
Nevertheless, should you also choose to use public funding, we’ve also included public-pay options for assisted living funding in the section below.
Public-pay options for funding assisted living (Medicaid)
Public-pay options like Medicaid can help cover medical needs for seniors who are considered low-income. But, because Medicaid is a state-sponsored resource, you’ll need to apply and qualify for it.
As such, every state holds different eligibility criteria for Medicaid. What’s more, not every assisted living community accepts Medicaid.
With that being said, if you can’t find an assisted living facility that accepts Medicaid, you might be able to apply for a waiver. Nevertheless, paying for assisted living with Medicaid can be very beneficial for seniors who qualify for this state-sponsored program.
It never hurts to ask a senior care specialist about whether their assisted living facility works with those who identify as low-income seniors and who use Medicaid to pay for services and long-term care.
Paying for assisted living with benefit plans
Many seniors and their families use stipends and other benefits to pay for long-term care and to cover assisted living costs. For example, if your loved one served in the military, worked for the government, or worked on a railroad site, certain federal benefits programs can help provide coverage for assisted living.
What’s more, wartime veterans and their spouses may qualify for a pension program by the Department of Veteran Affairs (VA). VA benefits can help cover assisted living costs.
Also, federal and postal employees — and their families, so long as family members qualify — can apply for Federal Long-Term Care Insurance Programs (FLTCIP) before retirement.
Just note that some medical conditions may disqualify a person from being approved for FLTCIP. You can always ask one of our senior care specialists what it takes to qualify for and use FLTCIP to help cover assisted living expenses.
They’re here to help and would be happy to do so.
Ways to make the most of an assisted living budget
Senior living, nursing home care, home health, and board and care can be expensive. We understand the struggle with finding affordable, yet comprehensive community living for older adults.
By taking the time to understand how to make the most of your assisted living budget, you can enjoy greater peace of mind when considering the range of senior care options available to you.
Here are a few tips for helping pay for assisted living costs:
- Compare the price of individual, stand-alone services versus choosing stock service packages: some assisted living facilities give you the option to choose individual services versus all-inclusive service packages at assisted living facilities.
- Consider sharing a living space with another senior: studies have shown time and time again that community centers for older adults can help stave off isolation and loneliness as we age (Fortune and Butler, 2023). Besides saving money and addressing loneliness, sharing room and board is also a safe option for older adults, as both individuals look out for one another.
- Opt-in to discount programs (for seniors who identify as low income): seniors may be able to qualify for senior benefit programs that allow them to save money on essential items such as drug prescriptions, hearing aids, dental care, vision coverage, and food.
- Hire a senior move manager: A senior move manager helps seniors and their families downsize, relocate, and move with greater ease. They help families and seniors who want to sell belongings to prepare for their move to assisted living communities.
- Research tax credits and deductions: Seniors who need help with activities of daily living may qualify for medical tax deductions, according to Internal Revenue Service (IRLS) Publication 502. Opting into tax credits and deductions may be another option for paying for assisted living services and care costs.
How to maximize the value of your assisted living payments
Last but not least, now that we’ve covered how to pay for assisted living, we’ll talk about how to get the most bang for your buck when paying for assisted living costs. Here are a few suggestions for how to navigate the assisted living payment process.
- Create an assisted living budget: after you’ve reviewed your assets and expenses, collect information for each account and compile it into a shareable document with all your loved ones. You can also designate a specific bank account from which to draw funds to help you free up sources of funding for your and your loved one’s assisted living needs.
- Bring a checklist with you as you tour each facility: keep track of what the assisted living community does well and what areas are missing. For example, how does the assisted living staff interact with their residents? Is there a specific amenity they provide that differentiates the assisted living community from other communities? And how about the living spaces? By noting what you like and dislike, you’ll place yourself in a better position to stay within your preferences and on budget.
- Plan ahead: Whether budgeting, touring facilities, or preparing for move-in day, give yourself more time than you think you need to do each item on your assisted living checklist.
- Reach out to a qualified senior care specialist: The role of senior care providers can’t be understated. You can always give them a call, email them, or visit them in person. They’d be happy to provide you with suggestions that fit your budget or discuss the benefits of their community at no cost to you and your family.
Did you know?
Did you know that assisted living communities offer financial support to help lower the cost of assisted care? Many senior living communities can accommodate new residents with their seasonal promotions.
At Village Walk, we recently extended our May summer promotion to June to pass along the savings and better support families and their loved ones with their care needs.
Learn more about assisted living community promotions — among other topics like how to reduce assisted living costs for qualifying veterans — on our Facebook page here.
Ask us about your options for how to pay for assisted living
Every assisted living community is different. But every community offers ways to pay for personal care tasks and much more.
At the end of the day, we’re here to make sure that seniors gain access to the care they deserve for all their needs.
At Village Walk, we offer a variety of payment options and plans for seniors and their families. We believe that no family should be barred from receiving the right care for their needs.
If you’d like to learn more about how to pay for help with personal care using veterans benefits, private assets, or more, don’t hesitate to contact our senior concierge staff.
We’d be happy to help you with all your needs. Until then, don’t be a stranger.
We look forward to getting to know you and welcoming you to our Village.
