Most people pay for assisted living themselves, using savings, retirement income or the sale of a home (National Institute on Aging). Medicare does not pay for it. Medicaid may help with some care costs in some states, and veterans, long-term care insurance and family can fill part of the gap.
The options compared
| Source | What it can pay | The catch |
|---|---|---|
| Personal funds | Everything (National Institute on Aging) | Costs can use up a significant part of monthly income, even for people who thought they had saved enough |
| Sale of a home | Everything, while it lasts | Tax and benefit effects. Get advice first |
| Long-term care insurance | Part of the cost, under some policies (National Institute on Aging) | Check benefit triggers, daily limits and any waiting period |
| Medicaid | May pay for some care services (National Institute on Aging) | Limited income and assets. Varies by state. Generally not room and board |
| VA pension with Aid and Attendance | A monthly payment added to a VA pension, usable toward care (U.S. Department of Veterans Affairs) | Wartime service, income and net worth rules, and a look-back on transfers |
| Family contributions | Whatever is agreed | Can strain relationships. Put it in writing |
| Medicare | Not assisted living (National Institute on Aging) | Still pays for the usual medical care |
A sensible order to work through
- Add up monthly income, savings and the home's value. Then add up the community's written fees, including care levels and likely increases.
- Find out how many months the money would last, and what happens when it runs out. Ask the community what it would do.
- Read any long-term care policy, or call the insurer.
- If your parent or their late spouse is a veteran, check VA Aid and Attendance.
- Check whether your state's Medicaid program covers assisted living, before money runs out.
Tools that find benefits
- The USA.gov Benefit Finder and the National Council on Aging's free BenefitsCheckUp can help you find programs by location and eligibility (National Institute on Aging).
- Your State Health Insurance Assistance Program offers free counseling at 877-839-2675.
- The Eldercare Locator (800-677-1116) can connect you with local help (U.S. Administration for Community Living).
This page explains the options in general. It is not financial advice. A financial adviser or elder law attorney can look at your parent's own numbers.
Common questions
Will my parent's health insurance pay for assisted living?
Most health and disability insurance includes limited, if any, long-term care benefits. Check the policy, but do not count on it.
Can selling the house pay for it?
Many older adults use proceeds from selling a home. Before selling, ask a tax professional about the tax effects, and ask an elder law attorney how it would affect benefits such as Medicaid.
Can family pay part of the cost?
Yes, and many do. If relatives share the cost, put the arrangement in writing. Moving a parent's money to family members can affect Medicaid eligibility.
Related guides
Does Medicaid pay for assisted living?
Medicaid can pay for some care services in assisted living in some states, but not for room and board. Here is how it works.
VA Aid and Attendance
VA Aid and Attendance eligibility, current maximum pension rates, the net worth limit and a calculator to estimate the payment.
Does Medicare cover assisted living?
Medicare does not pay for rent, meals or personal care in assisted living. It still covers medical care for residents. See what is covered and where else to look.
Sources
- Paying for Long-Term Care, National Institute on Aging (NIH). Checked November 8, 2026.
- Long-Term Care Facilities: Assisted Living, Nursing Homes, and Other Residential Care, National Institute on Aging (NIH). Checked November 7, 2026.
- Home & Community-Based Services, Medicaid.gov. Checked November 7, 2026.
- Aid and Attendance benefits and Housebound allowance, U.S. Department of Veterans Affairs. Checked November 8, 2026.
- Eldercare Locator, U.S. Administration for Community Living. Checked November 7, 2026.
This guide explains general rules. It is not medical, legal or financial advice for your situation. Program rules and amounts change, usually each January (Medicare and Medicaid) and each October (VA). Confirm details with the agency or a qualified professional before you decide. See our editorial policy.