What are the most common forms of payment for assisted living?

  1. Molly Dworken 10/16/2012 05:33PM

    Automated payments are becoming increasingly common, enabling the resident or family member to pay for their monthly apartment and service fees directly from their bank account. This eliminates the need for a paper statement and writing a monthly check.

    For most people, assisted living fees are paid out-of-pocket from the personal income and assets of their residents, which may include a combination of Social Security benefits, veterans' pension (including Veterans Aid and Attendance), private pension as well as personal savings. In some cases, the sale or rental of the resident's private home may provide the money needed. If the resident's spouse will continue to live in the home, one possible recourse is to use a reverse mortgage to fund the cost of assisted living. While it's not common, there are some older adults who have long-term care insurance and may use those benefits to help pay for the cost of assisted living.

    In 44 states, Medicaid offers some level of financial assistance to individuals in assisted living. Benefits vary, with some states paying only for personal care services while others include nursing services and even room and board costs. While Medicare does not pay for room and board or personal care at assisted living facilities, there are some medical services that residents may receive at an assisted living community that Medicare may cover.