For many seniors, one of today’s biggest struggles is figuring out how to pay for skilled nursing facility. Typically, people turn to public sources, such as Medicare and Medicaid. For seniors on Medicare, the first 100 days of in-patient skilled nursing facility is typically covered. After the initial 100 day period is over, an expensive daily co-pays kick in, or a patient would be forced to switch to Medicaid.

Unfortunately, to qualify for Medicaid, a senior often needs to meet both the medical necessity and financial eligibility aspects of this type of coverage. Medicaid recipient needs to be at poverty levels while middle-class Americans will often need to spend down their assets to qualify.  However, you should consult with an elder law attorney to make sure you take advantage of any exemptions or other planning opportunities before starting a spend-down.

There are several sources of funds commonly used to pay for assisted living. People often use private funds, veteran’s benefits, or long-term care insurance to pay for skilled nursing facility.  Private funds often come from investment portfolios, such as 401k plans or IRAs. People even use the equity in their own homes that has built up over time to pay for assisted living.

Depending on the terms of the policy, long-term care insurance covers home-based health care, nursing home care, and assisted living health care. In addition to these medical services, certain long-term care insurance policies may be able to help with the cost of assisted living.

Although paying for assisted living is often seen as a challenge for many families, assisted living can be an affordable option for many seniors with some financial planning. For more information about how to pay for assisted living, speak with an experienced elder law attorney in your area.