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Helpful Resources
Which Living Option is
Best for You
Knowing When it's
Time for Assisted Living
The Warning Signs of
Paying for Assisted Living
Learn More About
Assisted Living
Learn More About
Dementia Care
Local, State and
National Organizations
Paying for Assisted Living Care
Assisted living is typically paid for with private or personal funds of the resident or their family. In some cases personal funds can be supplemented with long-term care insurance reimbursement; veteran’s aid and attendance benefits; or Medicaid waiver funds. Medicare does not cover costs of care in assisted living.

According to the U.S. Census Bureau, the cost of staying in a licensed assisted living home is typically 30% to 40% less expensive than staying in a licensed nursing home.

To see how assisted living costs compare to the cost of living independently at home, see our Living Expenses Cost Comparison Worksheet.
» Veteran’s Benefits
  If you are a veteran, a dependent of a veteran or a surviving spouse of a veteran, you may be eligible for financial assistance to help pay for your stay in an assisted living residence. The program is called “Veteran’s Aid and Attendance Benefit.”

For more information, visit the US Veteran's Administration website or contact them by phone at 800-827-1000 and ask to speak to a Benefits Counselor to learn more about this program. For more information on the "Veteran's Aid and Attendance Benefit," click here.

There are also many private agencies that can assist in processing your VA Aid and Attendance claim. For more information, contact the Michigan Association of County Veterans' Counselors

We thank you for your service to our country.

» Long-Term Care Insurance

Long-term care insurance is a privately purchased insurance with a wide range of benefits and coverage. Policies are available to cover stays in nursing homes, assisted living homes, home care, hospice center care, adult day care, respite care and Alzheimer’s care. Most pay a predetermined rate – either by the day or month.

If you have a long-term care insurance policy and are not sure if it will cover the cost of a stay, your Administrator will be happy to review the policy and even talk with your insurance carrier to assist you in obtaining coverage. Although we do not bill the insurance company directly, we will complete and submit any routine documents that may be required by the insurance company.

» Life Settlement
  Life Settlement is the sale of an in-force life insurance policy, while the policy owner is still alive, for an amount greater than the cash surrender value but less than the face value or death benefit. Proceeds of the sale can be used to pay for assisted living care.

Life Settlement is an option worth considering if:
  1. You are a senior, age 65 or more;
  2. You do not have a spouse or dependents who need to be provided for after your death;
  3. You have owned your life insurance policy for two or more years;
  4. Your life insurance policy is in good standing – even if it has lapsed within the previous 12 months you may be eligible for reactivation;
  5. Your life insurance policy has a face value or death benefit of at least $50,000.
Check with your tax or financial advisor to determine your tax obligation if you choose a Life Settlement

For more information on Life Care Settlement options, visit Life Care Funding Group

» Tax Benefits of Assisted Living
  You may be eligible for a legitimate tax benefit that could result in a significant savings to you. Ask your financial planner, accountant or attorney to review IRS Publication 502. This publication addresses medical and dental expenses that may legally be deducted from your income at tax time. Under these guidelines the entire cost of assisted living may be deductible.

This publication states, “You can include the following as medical expenses on Schedule A (Form 1040) … Unreimbursed expenses for qualified long-term care services.”

Qualified long-term care services are defined as:

  1. “Necessary diagnostic, preventative, therapeutic, curing, treating, mitigating, rehabilitative services and maintenance and personal care services.”
  2. “Required by a chronically ill individual and provided pursuant to a plan of care prescribed by a licensed health care practitioner.”
Chronically ill individual is defined as a person who has been certified by a licensed health care practitioner within the previous 12 months as one of the following:
  1. “Unable for at least 90 days to perform at least two activities of daily living without substantial assistance from another individual due to loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing and continence.”
  2. “Require substantial supervision to bed protected from threats to health and safety due to severe cognitive impairment.”
According to the IRS, medical and dental expenses must exceed 7.5 percent of your adjusted gross income to be deducted. For many of you, your prescription expenses alone will bring you close to this threshold. If you qualify, you may be entitled to deduct up to 100 percent of your assisted living expenses! Be sure to check with your financial advisor, accountant or attorney.

Please note: This information is not intended to substitute for the advice of your financial planner, your accountant or your attorney. Our staff is NOT trained to offer financial advice. A full copy of this publication may be obtained at your local IRS office, online at www.irs.gov, by calling 800-829-3676 and at many post offices and public libraries.

If you need additional help paying for assisted living, feel free to contact your Administrator or visit the State of Michigan Long Term Care Ombudsman or review their Fact Sheet for Paying for Assisted Living.

We also have a number of listed that can provide you with additional help and support.Local, State and National Organizations.