Most residents of assisted living facilities are private pay, as neither Medicare nor Medicaid covers the costs. People usually pay expenses out-of-pocket from pensions, retirement savings and/or investment accounts. Social Security benefits, the sale of real estate, or financial help from family members are other means used to help pay the cost. Because residential assisted living care can be expensive over time, these resources eventually may be exhausted, in which case there are other options available to help pay the monthly fees.
Instructions
1. Purchase long-term care insurance (see Resources below). Policies offer a wide variety of options to consumers. Ab important factor to keep mind is that the older individuals are when they first purchase a long-term care insurance policy from an insurer, the higher the premiums will be. Policies often will pay only a predetermined amount for a specified period of time.
2. Apply for Supplemental Security Income (SSI) if you are older than age 65, blind or disabled and have limited income and assets (see Resources). If eligible to receive these benefits funded by federal and state governments, some assisted living facilities will accept a portion of the person's monthly benefit as payment. However, the facility may not charge more for room and board than the amount set by the state. By law a resident is allowed to keep a small portion of the monthly SSI benefit to cover personal expenses.
3. Talk to a home mortgage lender about a reverse mortgage. This may be a practical option if one spouse will remain living in the home while the other is residing in an assisted living facility. Reverse mortgages offer homeowners the opportunity to convert home equity into cash. In other words, money is paid to the borrower. The loan need not be repaid until neither spouse no longer resides in the home. While some lenders require that you own your home free and clear, others may allow you to apply if you have adequate equity. This is based on what your home is worth beyond any remaining mortgage your might owe. Applicants must be 62 years old to qualify.
4. Contact the U.S. Department of Veterans Affairs or visit veteranaid.org for more information about the Aid and Attendance Special Pension Program that pays toward the cost of assisted for veterans. A veteran must have served at least 90 days on active duty or at least one day during wartime (see Resources). Spouses of veterans also may qualify for coverage. Even though a medical condition need not be related to a veteran's military service, applicants must meet a medical qualification test. The maximum benefit paid varies according to whether an applicant is married, single or is the surviving spouse.
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