Paying for Care

Real-life costs, payment options, and tools to help families plan.

The cost of senior care can feel overwhelming, but with the right support, families can make confident, sustainable decisions. Whether you’re planning ahead or facing an urgent move, here’s how families manage care costs every day.

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Common ways families pay for care

Most families use a combination of:

Social Security or pension income

Personal savings or investment funds

Home equity

Long-term care insurance

VA benefits for veterans

Help from adult children or relatives

The right approach depends on care needs, financial resources, and timing.

Typical monthly costs for care.

Ballpark numbers to help you plan for real-life care expenses.

$2,000 – $5,000 for Independent Living

$4,000 – $10,000 for Assisted Living

$6,000 – $14,000 for Memory Care

$3,600 – $5,000 for Home Care (4 hours/day)

$18,000 – $25,000 for Home Care (24/7)

$13,000 – $17,000+ for Skilled Nursing (Private)

Costs vary based on location, services, and care levels.

Real estate solutions for funding care

For many families, proceeds from selling a home help fund the first years of care. Other options include renting out the home for ongoing income, exploring a reverse mortgage if one spouse still lives there, or using a bridge loan, which is a short-term loan that can cover care costs during urgent transitions or while waiting for a sale. This kind of financing can be especially helpful when timing or the housing market creates delays.

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Long-term care insurance

Private insurance that helps cover assisted living, memory care, home care, or skilled nursing, typically when a person needs help with daily tasks or has cognitive decline. Filing a claim involves:

Notifying the insurer of changes in health

Providing medical records

Completing an eligibility assessment

Waiting for the elimination period to end

Care Connect helps families interpret policies and navigate claims.

VA benefits that help Pay for Care

For eligible wartime veterans and their spouses, the VA Aid & Attendance benefit provides a monthly, tax-free payment that can significantly offset care costs. As of 2025, the approximate monthly amounts are $2,300 for a single veteran, $2,750 for a married veteran, and $1,500 for a surviving spouse.

To qualify, applicants must meet the following criteria:

- At least 90 days of active service, with at least one day during wartime
- Limited income and assets
- A demonstrated need for assistance with daily living activities

Approval typically takes 2–5 months, but retroactive payments are common, helping families recover care costs incurred during the waiting period.

Medicaid and spend-down

Medicaid covers skilled nursing and some in-home care for those who qualify.

Assets must be reduced to eligibility limits

Financial records from the past 5 years are reviewed

Planning ahead with an elder law attorney is recommended

Many families use a mix of private pay, insurance, and benefits before Medicaid.

Grants, shared living, and other ways to manage costs.

To lower costs or stretch resources, families may explore:

Companion suites (shared apartments) in care communities

Nonprofit respite programs or local grants

Crowdfunding for urgent needs

The right approach depends on care needs, financial resources, and timing.

Urgent help & thoughtful guidance.

Despite the fact that our son's case was not appropriate for Care Connect, Lori spent hours supporting us on the phone and contacting members of her network, without any kind of payment.

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Lori at Care Connect fills in all the blanks. Her years of experience prove to be vital in helping families find a community they can afford, provides the necessary care and fits their lifestyle. Mistakes cost you time, effort and money. Lori will help you to prevent mistakes.

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FAQs

01

How much does senior living typically cost?

It depends on care level and location, but most families can expect:

- Independent Living — from $2,000-5,000/month
- Assisted Living — $4,000 to $10,000/month
- Memory Care — $6,000 to $14,000/month
- Skilled Nursing — ~13,000+/month

02

Can real estate help cover care costs?

Yes. Many families use proceeds from selling or renting a home to fund care. Some explore options like home equity loans or reverse mortgages.

03

Does Medicaid cover senior care?

Medicaid may help with skilled nursing and some in-home care for those who qualify. Eligibility requires a significant spend-down of assets, along with a 5-year lookback at financial history.

04

What is Medicaid spend-down?

Spend-down is the process of reducing your countable assets to meet Medicaid’s financial eligibility limits. It’s often complex — we recommend speaking with an elder law attorney to plan ahead.

05

What’s the difference between hiring privately and using an agency?

Hiring privately may seem cheaper, but it comes with legal and safety risks (no insurance, no background checks, no workers’ comp), and seriously jeopardizes a person’s ability to qualify for Medicaid because it can negatively affect the lookback perioid. Agencies are licensed, compliant, and handle taxes, training, and replacements, offering peace of mind and protection.

06

What about long-term care insurance?

Hiring privately may seem cheaper, but it comes with legal and safety risks (no insurance, no background checks, no workers’ comp), and seriously jeopardizes a person’s ability to qualify for Medicaid because it can negatively effect the lookback perioid. Agencies are licensed, compliant, and handle taxes, training, and replacements, offering peace of mind and protection.

Not sure where to start?

Call Care Connect today. We’ll guide you through funding solutions, real-life costs, and trusted next steps. No pressure, just support.

Call or text

(908) 484-4307

Email us

help@careconnectseniorliving.com

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