Can I Afford Assisted Living Costs? - Amber Courtal

Can I Afford Assisted Living Costs?

July 9, 2023

How To Cover Your Assisted Living Costs As You Age


One of the biggest concerns that most people have as they age is covering the costs of the care that they will need.

Since everyone’s financial situation and care needs are unique, there’s no one right answer for everyone. You may need to consult your individual state laws, your accountant, or an attorney specializing in estate planning or elder care laws to come up with an individualized plan.

In general though, here is some information to consider as you begin planning to cover your assisted living costs as you age.


How Much Will I Need For Assisted Living Costs?

The cost of assisted living can vary by state and the amenities offered at the facility you choose. On average, you can expect to need $4,200 – $6,050 per month to cover your assisted living costs.

These funds will cover your living accommodations, meals, social activities, residential services, medical supervision, and personal care assistance.

This will provide you with a community specially designed to provide you with support to retain your maximum level of independence possible while you age.


Does Medicare Cover Assisted Living?

In general, Medicare does not cover the costs of assisted living or any other custodial care arrangement. However, some of the services provided at an assisted living may be covered depending on what type of Medicare coverage you have.


Medicare Part A

Medicare Part A is hospital insurance. It covers inpatient stays at hospitals, mental health facilities, skilled nursing facilities, as well as hospice and home healthcare. It will not cover assisted living costs.


Medicare Part B

Medicare Part B covers medically necessary outpatient care and some preventative care. It will not cover your assisted living cost directly, but it may cover some of the medical services that you might receive there.

Some examples of services covered under Part B include:

  • Some lab work and blood tests
  • Preventative vaccines
  • Heart disease screenings
  • Skilled therapies such as physical or occupational therapy
  • Cancer screenings
  • Diabetic supplies
  • Kidney dialysis services
  • Chemotherapy


Medicare Part C

Medicare Part C are plans offered by approved private insurance companies and are also known as Advantage plans. They include the benefits provided under Parts A and B and often additional services such as vision, hearing, or dental.

Part C will not directly cover assisted living expenses, however, they will cover your medical services. Some plans may have additional benefits that cover fitness and wellness activities and transportation to and from appointments.


Medicare Part D

Medicare Part D is prescription drug coverage. It covers Medicare-approved prescription medications no matter where you live, whether at home or in an assisted living.



Medigap is supplemental insurance that can be purchased to cover services that Original Medicare doesn’t. It generally does not cover assisted living, however.


Does Medicaid Cover Assisted Living?

Medicaid is a program partly funded by the national government and partly funded by individual states. The federal government sets guidelines for how Medicaid dollars must be spent, but these guidelines leave each state a considerable amount of their own discretion.

This means that Medicaid assistance for assisted living costs varies by state. By and large, though, most states have similar coverage guidelines as Medicare.

This means that Medicaid won’t cover any room and board costs for assisted living, but they may cover a portion of the costs that are related to services such as:

  • Personal care
  • Homemaker assistance
  • Skilled nursing
  • Emergency response systems
  • Case management
  • Transportation


How Do I Cover Assisted Living Costs?

There are a wide variety of ways to cover the cost of assisted living that aren’t picked up by other programs.

Some of the ways that people may choose to cover their assisted living costs include:


Personal Resources

The majority of people fund assisted living costs out of personal funds. These can come from a number of sources such as:

  • Pensions
  • Retirement Savings (401k, IRAs, or other retirement accounts)
  • Proceeds from selling stocks
  • Proceeds from selling a home or other property
  • Social security income
  • Residual income from your working years


Long-Term Care Insurance

A long term care insurance policy can help pay for assisted living costs without requiring you to tap into your savings or assets. These policies vary widely regarding what and how much they will cover each month so make sure that you read through the coverage details carefully when you purchase one.


Veterans Benefits

If you are a veteran, you may be eligible for benefits from the Veterans Administration (VA). The VA offers a benefit that can be used to pay for assisted living costs known as Non-Service Connected Improved Pension Benefit with Aid and Attendance (or simply, Aid and Attendance).

As of 2019, the program offers assistance up to $1,881 per month for a single veteran and up to $2,230 per month for a married veteran.


Reverse Mortgage

A reverse mortgage is a loan that you take out against the built-up equity on a home that you own. The loan is repaid after the borrower leaves the home, often by selling the home. This may be an option for married seniors where only one of the spouses needs assisted living care. This may not be the right option for you if you want your home to remain in the family.


Assisted Living At Amber Court

Amber Court Assisted Living Communities is proud to offer accommodations that offer both luxury and affordability.

We allow seniors to “age in place” with the knowledge that if assets become depleted, they can continue to enjoy the safety and comfort of their Amber Court Assisted Living Community residence.

By utilizing community-based Medicaid and monthly Social Security or Supplemental Security Income entitlements, seniors can be provided with vital services such as:

  • Personal care
  • Room and board
  • Housekeeping
  • Home health aides
  • Skilled therapies
  • Case management


Contact Amber Court Assisted Living Communities today for an individualized discussion about how to manage your assisted living costs in our lovingly managed assisted living community.