By Vannah Rose Roberto, Senior Concierge Advisor
How to Afford Senior Living: Navigating Options for Your Loved One
One of the biggest considerations when exploring senior living is determining how to pay for the care and housing that your loved one may need. With many options available, it’s essential to understand which financial resources are accessible and how best to plan for long-term care. Many families are surprised to learn that Medicare only covers short-term medical needs, such as hospital stays or rehabilitation, and does not cover long-term care costs like assisted living, memory care, or adult family homes. Here’s how to determine the best way to finance senior living.
1. Check for a Long-Term Care (LTC) Insurance Policy
A Long-Term Care (LTC) policy is often the first place to look. If your loved one purchased a policy years ago, it could help cover some or all of the costs associated with senior living and care. LTC policies typically provide coverage for various care levels, including:
- Private in-home caregivers
- Nursing homes
- Assisted living communities
- Adult family homes
- Memory care facilities
Key considerations for LTC policies:
- Some policies may have a waiting period before benefits begin.
- Policies often cover care for a set period, such as three to five years, though some have lifetime benefits.
- Coverage depends on the specific terms of the policy, so it’s important to review qualifications closely.
We can help you review the policy details to ensure it meets the criteria needed for admission into senior living. Understanding your loved one’s policy will help you determine the level of care they are eligible for and when benefits will start.
2. Assess Personal Assets and Available Funds
If your loved one does not have a long-term care policy, the next step is to evaluate their financial situation. Consider the following:
- Savings and Checking Accounts: What funds are available for immediate use?
- Retirement Accounts: Are there IRAs, pensions, or other retirement savings that can be accessed?
- Home Equity: If they own a home, selling the property or securing a reverse mortgage may provide additional funds for care.
By assessing these resources, you can get a clearer picture of how long your loved one can pay privately for care before requiring state assistance through Medicaid. Our advisors can help create a financial strategy that works best for your family, maximizing available resources and preparing for future needs.
3. Explore Medicaid Assistance for Long-Term Care
If your loved one doesn’t have LTC insurance or significant assets, they may qualify for state Medicaid assistance to cover senior living costs. In Washington State, Medicaid can cover care in nursing homes, assisted living, adult family homes, or in-home services—as long as certain eligibility requirements are met.
Washington Medicaid Eligibility Requirements:
- Monthly income below $2,700 for a single individual
- Assets totaling $2,000 or less
- A demonstrated need for nursing home-level care, such as assistance with activities of daily living (ADLs)
To learn more or begin the application process, visit the Washington Medicaid portal: Washington State Medicaid Application.
We’re Here to Help: Talk to an Expert Advisor Today
Navigating the financial side of senior care can feel overwhelming, but you don’t have to do it alone. Whether your loved one has insurance, personal assets, or qualifies for Medicaid, our experienced advisors are here to guide you through each step of the process. We’ll help you explore care options, understand available benefits, and ensure your loved one gets the care they need.
To speak with one of our expert advisors, call us at 1-855-444-7364. Our services are always free to families, and we are committed to helping you make the best decisions for your loved one’s care and future.
