Assisted living is often paid for with private funds. Some examples of the funds people use to pay for assisted living include Social Security, pensions, reverse mortgage, investments and long-term care insurance. Veterans and their spouses may be able to receive financial assistance through the VA Aid & Attendance program. This program provides you with a monthly allowance that can be used to pay for assisted living. Some, or all, of the cost of assisted living may be covered by Medicaid. However, there are certain criteria, such as income limits, asset limits and care needs, that need to be met in order to qualify for Medicaid.