Funding Strategies for Assisted Living Facility Care

Posted on July 13, 2017

By understanding how assisted living facilities are funded, you can better evaluate potential payment strategies. Facilities may be funded through several sources, depending on the senior's financial position.


Seniors may apply for Medicaid, a form of government assistance, to pay for all or part of the cost. To determine eligibility, Medicaid officials may conduct a thorough review of the applicant's income and spending from the prior five years. Seniors may want to discuss their circumstances with a knowledgeable financial counselor prior to applying for aid.

State Funding

Low-income seniors may apply for assistance through the Florida Optional State Supplementation Program (OSS). Benefits may help pay for room and board at assisted living facilities in Florida.


Although Medicare may not pay for room, board or personal care at an assisted living facility, actual medical expenses may be paid using Medicare coverage. Medical care can be administered at the facility rather than a doctor's office or hospital.

Personal Insurance

Both long term care and life insurance may cover living expenses in an assisted living facility. Insured individuals may want to discuss coverage options with their insurance agent prior to moving into a facility. Some life insurance policies may be cashed in or sold to help pay living expenses.

Personal Assets

Seniors may have several options when using personal assets to pay for long term care. They may own homes or other property that can be sold, rented, or used as security for a reverse mortgage. Cash resources may be invested or used to purchase annuities that pay pre-defined amounts over an extended period. When using personal assets, as the senior's financial position changes, funding options may be re-assessed.

Evaluating your financial options, combined with determining how assisted living facilities are funded, can put you in a solid position as you plan to cover the costs of long term care for yourself or your loved ones.