My dad moved to an assisted-living facility in KY this year. While medicare/medicaid do not pay anything, the facility (Christian Care Communities) participates in the HUD subsidy program. Under the HUD program, the assisted-living expenses are subtracted from my dad's monthly gross income BEFORE determining his monthly income for HUD qualification. Thus, while my dad is not directly having his assisted-living expenses paid, they are being deducted and did allow him to qualify for reduced rent from the HUD subsidy program. Note, however, that not all assisted-living facilities qualify for or work with HUD, so you should ask up-front what kinds of financial assistance are available.