Understanding your payment options is crucial when planning for senior care. Most families use a combination of personal savings, long-term care insurance, veterans benefits, and government programs to cover costs.
Private Pay / Personal Savings
The most common way to pay for senior living is through personal funds:
- Savings and retirement accounts
- Social Security income
- Pension payments
- Selling a home
- Family contributions
Long-Term Care Insurance
If your loved one has a long-term care insurance policy, it may cover:
- Assisted living costs
- Memory care
- Home care services
- Nursing home care
Review the policy carefully for coverage limits and elimination periods.
Veterans Benefits
Veterans and surviving spouses may qualify for:
- Aid & Attendance: Up to $2,500/month for veterans, $1,350 for surviving spouses
- VA Pension: Additional monthly income for qualifying veterans
- Contact your local VA office to determine eligibility
Medicaid
Medicaid may help pay for:
- Nursing home care (in most states)
- Some assisted living costs (varies by state)
- Home and community-based services
Note: Medicaid has strict income and asset limits. Many families work with elder law attorneys for Medicaid planning.
Medicare
Medicare does NOT pay for:
- Assisted living
- Memory care
- Long-term custodial care
Medicare only covers short-term skilled nursing care after a hospital stay.
Other Options
- Life insurance policy conversion
- Reverse mortgage
- Bridge loans
- Family pooling resources
Planning Ahead
The earlier you plan, the more options you have. Consider consulting with:
- Elder law attorney
- Financial advisor specializing in senior care
- Geriatric care manager
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