Paying for Senior Living

How Do You Pay for Senior Living? Private Pay, Long-Term Care Insurance, VA Benefits and More

Once families understand the potential cost of senior living, the next question is often: How do we pay for it? The answer can vary depending on the type of senior living and care needed, including Independent Living, Assisted Living, Memory Care or Skilled Nursing.

Families may use a combination of personal assets, insurance benefits, government programs and other available resources.

Private Pay and Personal Assets

Many residents begin by paying privately for senior living. That may include income, savings, investments or proceeds from selling a home. Because senior living is typically a monthly expense, it is helpful to understand your available resources before beginning the search.

Families should also ask each community about its payment policies and which financial assistance programs, if any, are accepted. These policies can vary by community and by level of care, so understanding them early can help families better plan for both current and future needs.

Understanding Different Levels of Senior Living

How senior living is paid for can depend in part on the type of community and level of care.

Independent Living is generally designed for older adults who can live independently but want the convenience, amenities and social opportunities of a senior living community.

Assisted Living provides housing along with varying levels of support with daily activities and personal care. In Wisconsin, assisted living communities may operate under different classifications, including Residential Care Apartment Complexes (RCACs) and Community-Based Residential Facilities (CBRFs).

RCACs typically offer independent apartments along with supportive, personal and nursing services, while CBRFs provide room, board, supervision and support services for residents who may require additional assistance.

Memory Care describes specialized care and support for individuals living with Alzheimer’s disease or other forms of dementia. Memory care may be offered within an assisted living setting or as part of a Skilled Nursing community, depending on an individual’s needs.

Skilled Nursing provides a higher level of medical and nursing care for individuals who need ongoing clinical support, rehabilitation or other skilled services.

Long-Term Care Insurance

If your parent or loved one has a long-term care insurance policy, review it carefully. Depending on the policy and level of care needed, it may help cover services provided in Assisted Living, Memory Care or Skilled Nursing.

Some policies include an elimination period before benefits begin, and specific criteria may need to be met. If you are unsure what a policy covers, contact the insurance provider and ask specifically about benefits for the type of care being considered.

Veterans Benefits

Veterans and, in some cases, surviving spouses may qualify for financial assistance through VA benefit programs. One program families may want to explore is Aid and Attendance, which may provide additional monthly payments to qualifying veterans or survivors who need help with daily activities or meet other eligibility requirements.

A local Veterans Service Office or the U.S. Department of Veterans Affairs can help determine eligibility and explain the application process.

What About Medicare and Medicaid?

Medicare generally does not pay for long-term custodial care in Independent Living, Assisted Living or Memory Care. However, Medicare may cover short-term care in a Skilled Nursing Facility when certain medical and eligibility requirements are met.

Medicaid may help pay for certain long-term care services for people who meet financial and other eligibility requirements. Availability and acceptance can vary depending on the type of community, location and program.

Because every situation is different, it is important to ask the senior living communities you are considering what payment options and assistance programs they accept.

Know Your Options Before You Need Them

The earlier families understand their financial picture, the easier it can be to evaluate senior living options. Start by reviewing savings, income, insurance policies, veteran status and other available resources.

Then talk with senior living communities about the appropriate level of care, pricing, payment requirements and which financial programs they accept. Understanding those details early can help families make a more informed plan and find the right setting for their loved one.

OAK PARK® Place offers a variety of resources to help families understand their senior living options, including a free consultation with one of our Senior Living experts. Contact us today!