Most people pay for Assisted Living with current income from social security and pensions coupled with the use of savings, including the proceeds from selling a home. Long Term Care Insurance is more and more widely used to offset the cost of Assisted Living. Some consumers convert life insurance policies to a loan, and others have family members who help pay a share of the monthly cost.
Medicare and other health insurance plans and HMOs will NOT pay for assisted living services. There is, however, a program for veterans that will contribute over $1,800 a month (and over $2,100 for couples) called the Veterans’ Aid and Attendance Benefit.
Financial assistance programs, including Medicaid, may be available for those with limited resources, although not every Assisted Living community participates in these programs. In Massachusetts, for example, there are several programs for low-income seniors, including Group Adult Foster Care (GAFC), Senior Care Option (SCO), and the Program for All Inclusive Care of the Elderly (PACE), as well as Section 8 housing. Recent statistics from the Massachusetts Executive Office of Elder Affairs show that approximately 12% of Assisted Living residents in Massachusetts are enrolled in these financial assistance programs.
Because the vast majority of residents pay privately and every Assisted Living community is different, you are encouraged to speak with someone at each community to learn more about the payment options the specific residence accepts.