Ways to Pay for Assisted Living
Most individuals pay privately for assisted living. For some seniors, there are ways to reduce out-of-pocket costs: Long-Term Care Insurance - many long-term care insurance policies cover assisted living. The amount of coverage and conditions vary widely. Be sure to review your policy carefully.
Medicaid Home and Community Based services - find out if there are any programs in your state the provide financial assistance to eligible seniors to remain in a community setting even though their disabilities would call for placement in a long-term care facility. Most Medicaid-covered services for long-term care are provided in a nursing home. The Medicaid Waiver allows eligible persons to receive supportive services in their own homes or in assisted living facilities. Applicants must be at least 50 years old and must meet financial and medical eligibility requirements.
Senior Assisted Living Group Home Subsidy - look for state programs that provide monthly assistance with some of the cost of assisted living for individuals who meet income eligibility and possibly other requirements. Usually individuals must be 62 years old and meet income and asset requirements.
Medicare and Medical Assistance - Medicare doesn't pay for assisted living. Medical Assistance programs may cover much of the cost but only if the resident qualifies.
Tax Deductions - Paying out-of-pocket for assisted living may qualify you for a tax deduction. Speak to an IRS agent for more information.