How to Use Public Benefit Programs to Help Pay for an Independent-Living Facility

Neither Medicaid nor VA benefits pay for any of the direct costs of an independent-living facility. However, if your loved one lives in an independent-living facility and has very low income and few assets other than the living unit, either Medicaid or the VA might be able to pay for additional in-home care. Also, a program called Cash and Counseling may be able to provide some payment to family members for in-home care provided to your loved one while living in an independent-living facility.

Medicaid

Medicaid doesn't pay for independent-living facilities, but if your loved one qualifies for Medicaid coverage of in-home care, it can be provided in an independent-living facility. In order to qualify for Medicaid coverage of in-home care, your loved one has to have very low income, few assets (other than the independent living unit itself, if he or she owns it), and a need for regular in-home care as determined by the state's Medicaid agency.

Veterans' benefits

If your loved one is a veteran or the surviving spouse of a veteran, there may be some help from the Department of Veterans Affairs (VA) for in-home care, which can be provided at an independent-living facility. Also, if your loved one is a veteran or surviving spouse of a veteran and has low income and few assets other than the independent-living facility unit he or she lives in, some monthly cash benefits may be available from the VA. And if your loved one is housebound, these benefits may be even higher.

Cash and Counseling (payment to family members)

Even if your loved one is able to live in an independent-living facility, he or she may need regular assistance with some of the activities of daily living. And in some states, there's a program that pays an older adult directly to cover part of his or her in-home care costs. If your loved one qualifies for the program, he or she can then use the cash benefits to pay you or other family members, or independent home care workers, to provide care. To qualify, the person who needs care must have very low income and few assets, though the standards may be slightly easier to meet than for regular Medicaid coverage. The payments are not a lot, but they can help.

In some states this program is called Cash and Counseling; other states have similar programs under different names. To find out about a Cash and Counseling or similar program in your state, contact the state Medicaid agency online or contact your local Area Agency on Aging.

Tip: Help with Medicaid or Cash and Counseling -- If you need help with questions about Medicaid or Cash and Counseling program coverage of in-home care in your state, you can get free, expert counseling at a local office of the State Health Insurance Assistance Program (SHIP) or Health Insurance Counseling and Advocacy Program (HICAP).

Learn more about other ways to pay for an independent-living facility.