Are All Assisted Living Facilities Private Pay?

Author: Andrea Miller

Reviewed By: Rachel Rose

All assisted living facilities are private pay, which means they don’t accept insurance for their services. Medicare doesn’t cover the cost of assisted living care, but Medicaid pays for part of this expense in some states. However, you’re responsible for covering the remaining cost out of pocket if you qualify for this type of program. 

What if You Don’t Have Money To Pay For Assisted Living?

If you don’t have money to pay for assisted living, look into programs for low-income seniors, veterans and people who have disabilities. The federal Housing Choice Voucher Program, commonly called Section 8, provides a monthly voucher that eligible people can use toward rent at a qualifying residence, including an approved assisted living facility. To qualify for Section 8, your income must fall below 50% of the median income for your metro area or county.

Veterans and qualifying family members may receive the Aid and Attendance Benefit from the Veterans’ Administration to pay part of their assisted living costs. Apply for this benefit if you need help with daily activities, such as feeding yourself, dressing and grooming. 

What Strategies Can You Use To Pay if You Can’t Afford Assisted Living?

If you can’t afford assisted living, you can apply for a reverse mortgage or use the benefits from a long-term care insurance policy or a life insurance policy. Long-term care insurance covers the cost of long-term care when you need it, but you have to buy coverage in advance. If you own a home, a reverse mortgage could provide the cash flow you need to pay for assisted living. Some permanent life insurance policies let you cash out the policy value for this purpose as well.