Paying for Eldercare

As care needs change with a corresponding increase in costs, families may find themselves needing to tap into multiple resources and public benefit programs.

Public Benefits & Available Funding Resources

• • Individual monthly income from social security and pension

  • Private funds such as retirement funds and investments, family contributions.

  • Insurance - Long Term Care Insurance policies can pay towards expenses for in-home care, assisted living, and skilled nursing.  There are also hybrid insurance policies and policy riders which can provide a long-term care benefit.

  • Family Caregivers – American Red Cross estimates some 70M families provide home care to family members and loved ones.

  • Veterans Administration Benefits such as the VA Aid and Attendance Program which can help pay for in-home care or assisted living expenses for a veteran with or without a spouse and a surviving spouse.

  • Community Services such as scholarships offered by non-profit organizations for seniors to attend adult day care programs, or faith-based groups and volunteers.

  • Reverse Mortgages

  • Medicaid is a state-funded program for low-income persons in need of financial assistance. Community-based elder programs can provide limited benefits for home care services or care services in an assisted living facility. Facilities are not required to accept Medicaid, requirements differ between states.

  • Medicare is national health insurance for persons aged 65 and older, permanently disabled adults, and persons with ALS or end-stage renal disease. (Original – Part A & B) Medicare does not pay for custodial home health care services to assist with activities of daily living. A few Medicare Advantage Health (Part C) plans include very limited home care benefits coverage. 

How to Pay for Assisted Living

Most assisted living is paid for privately by the resident and/or his or her family.

For certain low-income residents with few assets, Florida’s Statewide Medicaid Managed Care Long-term Care (SMMC-LTC) program pays part of monthly fees at a participating facility.  Medicaid LTC program doesn't pay for room and board but does pay a set amount for assistive care services.  The family of a resident who qualifies for LTC may pay some or all the costs of room and board without affecting the resident's program eligibility.  Not all assisted living facilities participate in Medicaid’s LTC program, and those that participate may limit the number of their living units.

Low-income veterans or surviving spouses of veterans may also be eligible for Aid and Attendance or other payments from the Department of Veterans Affairs (VA), which can help pay for assisted living.

Personal Care of Services Fees vary from community to community.  Some charge a la carte for care services using a point system, others charge for levels of care, while others offer all-inclusive rates whether you need a little or a lot of care.  It is important to know what is included and what is extra. For example, most memory care communities use an all-inclusive rate based on the room size with care fees included with the exception of incontinence supplies which are usually supplied by the family or paid for as a Medicaid LTC program benefit.