How to Afford Assisted Living or Memory Care: What Medicare, Medicaid & Private Pay Really Cover

If you’ve started looking into senior living options for yourself or a loved one, one of the first questions you might have is: How do people actually pay for this? You’re not alone. It’s one of the most common concerns I hear.

Let’s break it down.

Most Senior Living Communities Are Private Pay

That means you or your loved one will be responsible for covering the costs, usually through:

• Income (Social Security, pensions)

• Assets (savings, investments, home sale proceeds)

• Long-term care insurance (if you have it—this is gold!)

• Life insurance (some policies can be cashed out)

• Veterans benefits, for aides and attendants

Sometimes, adult children help cover costs, especially when there’s a gap between what their parent can afford and what a community charges.

What About Medicaid?

Some communities accept the Medicaid Waiver Program, which can help if you meet certain financial requirements. In Michigan in 2025, that means:

• Monthly income under $2,800

• Assets under $2,000

How it works: If your income is $2,000/month and the state assesses your care needs and approves an additional $2,000/month through the waiver, you’ll have $4,000 to put toward care.

But if a community charges $6,000/month, there’s a shortfall—and the community may ask your family to help cover that difference.

What Does Medicare Cover?

This can be confusing. Medicare does not pay for assisted living or memory care room and board. It only covers the same medical expenses it would if you were living at home—like doctor visits, prescriptions, or physical therapy.

Still Unsure?

That’s what I’m here for. Every family’s situation is different, and it can be hard to sort through the options and all the variables on your own. If you have questions or want help finding resources, don’t hesitate to call or text, or email me. I’m here to help.