Most families start paying for assisted living with private funds, such as savings, retirement programs, pensions, and investment income. Many people use Social Security retirement and disability benefits to pay for assisted living. While these benefits may not be enough to pay the full bill, they can make assisted living more affordable. For eligible war veterans and their surviving spouses, veterans benefits can be used to pay for assisted living.
Denise Lettau, a lawyer for the elderly in Florida, says that a surprising number of her clients forget about the many veterans benefit programs that are available. Lettau says that many assisted living communities are willing to offer discounts or negotiate a lower monthly rate. He says accepting less money for a room is better for the community than leaving the room empty. In many communities for older people, a shared room is cheaper than a private room or apartment.
In addition to saving money, sharing a room can be safer and prevent loneliness, a common problem among older people. Be sure to consider the personality of your loved one, as many residents expect to have their own private space. Many older people are eligible for Medicaid, which does cover the cost of many care services. Each state's Medicaid program is different, but applying for benefits is the first step in understanding how your loved one's state can help. A Place for Mom's low-income assisted living guide explores other options for receiving care.
Medicaid doesn't cover room and board as part of the costs of assisted living. However, many states offer Medicaid exemption programs that can help defray the costs of assisted living. These are called Medicaid exemptions for home and community-based services (HCBS) or Medicaid exemptions 1915 (c)). In addition to income from sources such as retirement funds, pensions and savings, most seniors initially pay for assisted living using Social Security retirement benefits, veterans benefits, insurance policies, home equity, and the sale of personal property.
Older people who have little or no income often pay with publicly funded benefit programs, such as Medicaid and Supplemental Security Insurance (SSI). A long-term care insurance policy eliminates the burden of having to pay for 100% of care with personal funds by helping to supplement monthly payments to an assisted living provider. In fact, the costs of assisted living can completely overwhelm the personal savings accounts of older people and their families. Medicaid doesn't cover the room and board portion of assisted living, which makes up a large part of the costs of assisted living.
Some assisted living communities allow families to choose between an all-inclusive rental rate and paying for services individually as needed. These services can be provided in a variety of settings, from adult day care centers to assisted living facilities. Not all assisted living facilities accept Medicaid, and those that do may only allow a certain number of beds for people receiving Medicaid. Medicare doesn't cover assisted living costs, only eligible short-term stays in a skilled nursing facility for each benefit period. Most older people and their families initially pay for assisted housing with savings, pensions, and investment funds, and programs such as veterans benefits and Social Security retirement benefits.
The Department of Veterans Affairs offers an assistance and assistance benefit to eligible veterans and to surviving spouses to help cover the cost of assisted living.
