How to Pay for Senior Living: VA, Medicaid, and Private Pay Options

One of the most common concerns families have when exploring senior living is:
“How are we going to pay for this?”

Senior living can be a significant investment, especially for higher levels of care like Assisted Living or Memory Care. Fortunately, there are several financial options available—including Veterans’ benefits, Medicaid waivers, long-term care insurance, and private resources—that can help make quality care more affordable.

In this guide, we’ll walk you through the most common ways to pay for senior living and how to explore what your loved one may qualify for.

👉 Read: How to Pay for Memory Care: A Guide for Families Navigating Senior Care Costs

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1. Private Pay (Out-of-Pocket)

Most families start by using private funds, including:

• Retirement income (Social Security, pensions, IRAs)
• Personal savings and investments
• Proceeds from the sale of a home
• Contributions from family members

Private pay gives you the most flexibility in choosing a senior living community and does not require eligibility applications.

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2. Long-Term Care Insurance

If your loved one has a long-term care (LTC) insurance policy, it may help cover:

• Assisted Living
• Memory Care
• In-home care or personal aides
• Short-term respite stays

Coverage varies by policy, so it's important to review the plan details and speak with the insurance provider. Many ONELIFE Senior Living communities can assist with benefits verification and claim filing.

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3. Veterans’ Benefits (VA Aid & Attendance)

Eligible U.S. veterans and their surviving spouses may qualify for VA Aid & Attendance, a monthly payment added to their pension to help cover the cost of care. As of 2025, maximum benefit amounts are:

• $2,727/month for a married veteran
• $2,300/month for a single veteran
• $1,478/month for a surviving spouse

This benefit can be used to offset the cost of Assisted Living or Memory Care.

To qualify, veterans must meet service, income, and medical eligibility criteria. Working with a VA-accredited claims agent or elder law attorney is often helpful.

👉 Learn more: Veterans’ Benefits That Can Help Pay for Senior Living

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4. Medicaid Waivers (for Assisted Living or Memory Care)

In certain states, Medicaid offers Home and Community-Based Services (HCBS) waivers that can help pay for Assisted Living or Memory Care. These waivers:

• Are income- and asset-based
• May cover part or all of the cost of care
• Often have waitlists or limited slots

Eligibility and availability vary state by state. For example:

• Oregon: Offers K Plan and Medicaid waivers for Memory Care
• Arizona: Uses the ALTCS program to help pay for long-term care
• California and Illinois: Have programs for low-income seniors in licensed care settings
• Nevada: May provide assistance through HCBS waivers based on clinical needs

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5. Bridge Loans & Home Equity

If you're waiting for a home to sell or accessing retirement funds, short-term financial tools like bridge loans or home equity lines of credit (HELOCs) can help cover immediate care costs.

Some families also consider reverse mortgages, though this should be discussed with a financial advisor.

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6. Combination Approaches

In reality, many families use a combination of these options—like using LTC insurance to supplement private pay, or receiving VA Aid & Attendance while using savings to cover the remainder.

Working with a Senior Living Advisor or Financial Planner can help you build a realistic, sustainable plan.

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We’re Here to Help

At ONELIFE Senior Living, we understand the financial side of senior care can feel overwhelming. That’s why our team is here to walk you through the options, answer your questions, and connect you with trusted partners who can help.

Contact us to schedule a conversation

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👉 Next up: Why You Shouldn’t Choose a Senior Living Community Based on Price Alone

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Frequently Asked Questions

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What is the most common way to pay for senior living?

Private pay—using retirement income, savings, home equity, or family contributions—is the most common method. It offers the most flexibility when choosing a community.

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Does insurance cover senior living costs?

Health insurance and Medicare don’t cover senior living, but long-term care insurance may cover Assisted Living, Memory Care, and in-home services depending on the policy.

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Can veterans receive financial help for senior living?

Yes. Eligible veterans and surviving spouses may qualify for VA Aid & Attendance, a monthly benefit that can help offset the cost of care, including Assisted Living and Memory Care.

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Does Medicaid pay for senior living?

In some states, Medicaid waivers can help cover costs for Assisted Living or Memory Care. Eligibility varies by income, assets, and location.

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