Does Social Security Pay for Assisted Living?

Assisted living facilities provide a supportive environment for individuals needing help with daily activities, without requiring the extensive medical care of a skilled nursing facility. These communities offer personal care, meals, supervision, and engaging activities. Many wonder if Social Security benefits cover these costs. This article examines Social Security’s role and other potential funding sources for assisted living.

Social Security Benefits and Assisted Living Costs

Social Security benefits are not designed to directly cover the room and board expenses of assisted living facilities. These payments serve as income replacement for eligible individuals, such as retirees or those with disabilities. Recipients can use their Social Security payments to help offset costs, but these funds are not a specific program for assisted living. The average monthly Social Security retirement benefit in 2025 is about $1,979, which is less than half the median monthly cost of assisted living ($5,190 in 2025).

Supplemental Security Income (SSI) is a separate, needs-based program administered by the Social Security Administration, providing a basic income for low-income individuals who are aged, blind, or disabled. While SSI provides financial assistance, it does not cover the full cost of assisted living room and board. The average monthly SSI payment in 2025 is about $590.

Some states offer Optional State Supplements (OSS) in addition to federal SSI benefits, providing additional financial help for individuals in assisted living. These state-based supplements vary significantly, with amounts depending on factors like local cost of living and whether the recipient resides at home or in an assisted living setting. OSS payments may be sent directly to the individual or to the assisted living facility to help cover room and board fees.

Medicaid Coverage for Assisted Living

Medicaid, a joint federal and state program, provides healthcare coverage for eligible low-income individuals and families. While Medicaid does not cover the room and board component of assisted living directly, it can be a major source of funding for services provided within these settings. This support often comes through Home and Community-Based Services (HCBS) Waivers, which cover personal care, assistance with daily activities, case management, and therapies.

Eligibility for Medicaid and HCBS waivers for long-term care involves financial and medical criteria. Income limits apply, often tied to a percentage of the Federal Poverty Level or specific state thresholds. For example, a single applicant in Florida in 2025 must have a gross monthly income not exceeding $2,901.

Asset limits also exist, with countable assets for a single person often capped around $2,000. Certain assets, like a primary residence, may be exempt. A medical assessment is required to determine if an individual needs a “nursing facility level of care” or similar assistance for waiver services. This assessment evaluates an applicant’s ADLs, cognitive, and medical needs. To determine eligibility, individuals should gather financial documentation, medical records, and functional assessments.

Once eligibility criteria are understood and documentation is prepared, the Medicaid application process can begin. Individuals can contact their state Medicaid agency to obtain and complete the application form. Many states encourage online applications for faster determination.

After submitting the application and supporting documents, there may be a waiting period for a determination. A caseworker might contact the applicant for additional information or clarification.

VA Benefits for Long-Term Care

VA benefits can assist with assisted living costs for eligible veterans and their surviving spouses. The “Aid and Attendance” (A&A) pension is the primary VA benefit for long-term care, providing an enhanced pension for veterans who require assistance with daily activities. This benefit is paid in addition to the basic monthly VA pension.

Eligibility for Aid and Attendance requires meeting military service, medical, and financial criteria. Veterans must have served at least 90 days of active duty, with at least one day during a period of war, and have received an honorable discharge.

The medical need for A&A means the veteran or surviving spouse requires assistance with activities of daily living, such as bathing, dressing, or eating. Other qualifying conditions include:
Being bedridden due to disability.
Having severe vision impairment (corrected vision of 5/200 or less).
Residing in a nursing home due to physical or mental limitations.

Financial eligibility involves income and net worth limits, currently set at $159,240 for VA pension eligibility. Countable assets include bank accounts, stocks, and bonds, but exclude the primary residence, automobile, and personal effects. Unreimbursed medical expenses can be deducted from income.

To apply for VA Aid and Attendance benefits, individuals need to complete VA forms and gather supporting documentation. This includes medical forms completed by a physician detailing the applicant’s needs. If the applicant resides in a nursing home, an additional form is required.

Applicants should include copies of their military discharge papers (DD-214), proof of assets and income, and documentation of unreimbursed medical expenses. The completed forms and evidence can be mailed to the appropriate Pension Management Center or submitted in person at a local VA regional office. Processing time for these applications can vary.

Other Funding Sources for Assisted Living

Beyond Social Security, Medicaid, and VA benefits, several other financial strategies can help cover assisted living costs. Personal savings and assets represent the primary method of payment. This includes utilizing funds from retirement accounts, such as 401(k)s or IRAs, accessing investment portfolios, or using proceeds from the sale of a home or other assets.

Long-term care insurance is another option, designed to cover the costs of long-term care services, including assisted living. These policies are purchased years in advance and provide benefits when certain triggers, such as needing assistance with a specified number of daily activities, are met. Family contributions also bridge funding gaps, with financial support from children or other relatives helping to cover expenses.

Bridge loans or reverse mortgages can serve as short-term or equity-based solutions. A reverse mortgage allows homeowners aged 62 and older to convert a portion of their home’s equity into cash without monthly mortgage payments, which can then be used for care costs. However, a reverse mortgage must be repaid if the borrower moves out for 12 consecutive months or more, such as into a care facility.

Some states may offer limited, non-Medicaid specific programs or grants for assisted living or home care. These programs are variable and less widespread than Medicaid waivers, but they can provide additional support for eligible residents. Individuals should inquire with their state’s aging or social services departments for information on these programs.