If you’re starting to plan for senior living, either for yourself or a loved one, you likely have many questions about cost. How do people pay for senior living? What does insurance cover? What’s the difference between Medicare and Medicaid? These are some of the most common concerns we hear from families every day.

We’re here to help you navigate your questions and concerns. As a LifePlan Community, we offer a full continuum of care on one campus. From independent living to assisted living, memory care, and skilled nursing, it’s all right here. That means you can move in when you’re independent and continue receiving care as your health needs change, all within the Meth-Wick community.

Unlike some communities that charge residents up front for future services that they may need, our pricing model allows residents to only pay for the services they are currently receiving. With over 50% of our residents never moving from independent living, this Fee for Service model means our residents don’t pay for services that they don’t end up needing.

Here’s a closer look at the most common ways people pay for senior living and what you should know as you plan ahead.

Long-Term Care Insurance

Long-term care (LTC) insurance helps pay for care services that aren’t covered by health insurance or Medicare, like help with bathing, dressing, eating, and other daily activities, whether at home or in a community setting.

You may have heard long-term care insurance referred to as “nursing home insurance,” but that term doesn’t tell the whole story. While early policies often focused on covering the cost of nursing home care, today’s long-term care insurance typically includes a much wider range of services, including assisted living, memory care, in-home care, and even adult day services.

You may have also heard that insurance for long-term care is expensive and difficult to qualify for. The landscape has shifted in recent years, with fewer insurers offering policies and higher premiums across the board. That said, the potential benefits can still outweigh the costs, especially when care needs become more intensive.

Premiums can be high, especially if you wait until your late 60s or have preexisting health conditions. If you’re in your 50s or early 60s and in good health, LTC insurance can help protect your savings and give you more choice in how and where you receive care.

Hybrid policies that combine life insurance and LTC coverage are becoming more popular and may offer greater flexibility.

Most policies begin paying benefits when a physician certifies that the policyholder needs assistance with at least two Activities of Daily Living (ADLs), such as dressing or bathing. A diagnosis and a review process are usually required, and there’s often a waiting period—typically 30 to 90 days—before benefits begin.

Veterans’ Benefits for Senior Living

Wartime veterans and their spouses may qualify for the Aid and Attendance (A&A) benefit available through the U.S. Department of Veterans Affairs (VA). It provides additional monthly income to qualified veterans and their surviving spouses who need help with ADLs. It can be used to help pay for assisted living, memory care, in-home care or skilled nursing care. The medical need must be verified by a physician.

To qualify, a veteran must:

• Have served during a time of war (combat duty is not required)
• Meet certain financial criteria
• Have a medical need for care

Many families aren’t aware of this program, so it’s worth talking with a senior living advisor or VA-accredited planner to see if you qualify.

Using Home Equity or a Bridge Loan

Many families use proceeds from selling their home to fund a move to senior living. But if the timing doesn’t work out right away, a bridge loan can help.

Bridge loans provide short-term funding that allows you to move in while waiting for your home to sell. These loans can cover entrance fees or monthly costs temporarily.

It’s a flexible option if you’re ready to move but still need time to liquidate assets.

Using Life Insurance to Fund Senior Living

There are some types of life insurance policies that can help cover the cost of senior living care. Depending on your policy, you might have a few options:

• Living Benefits Riders. Some newer policies allow access to a portion of the death benefit if you’re diagnosed with a serious illness or need long-term care. Typically, you can access up to 50 – 80% of the death benefit, and funds can be used for any type of care: assisted living, skilled nursing, or in-home assistance.
• Life Settlements. You can sell your policy to a third party for a lump sum, often more than its cash value.
• Policy Loans. If your whole life or universal life policy has built up cash value, you can borrow against it, without giving up the policy.

These options can be especially helpful when facing unplanned care costs.

Does Medicare Pay for Assisted Living?

This is a common misconception. Medicare does not cover the cost of assisted living, memory care, or custodial care. It primarily pays for:

• Hospital visits
• Doctor services
• Prescription medications
• Short-term rehabilitation following a hospital stay

If you’re counting on Medicare to pay for senior living, it’s important to adjust expectations early in the planning process.

Does Medicaid Cover Assisted Living?

Medicaid may help cover long-term care costs, but coverage is very limited—and it’s important to understand exactly what it does and doesn’t include.

In most cases, Medicaid will not pay for room and board in assisted living communities. It may help with personal care services, but only in Medicaid-approved facilities or through specific waiver programs.

Key points to know:

• In Iowa, Medicaid typically covers care in a Medicaid-certified nursing facility for individuals who meet both financial and medical eligibility requirements.
• Some states offer Home and Community-Based Services (HCBS) waivers, which may help cover personal care in assisted living settings. However, these waivers are limited and may involve long waiting lists.
• Assisted living communities must be certified by the state to accept Medicaid. Not all communities—including many LifePlan Communities—participate in Medicaid programs.

For families counting on Medicaid as a long-term care funding source, it’s essential to ask upfront whether a community is Medicaid-certified and what services are actually covered.

Planning Ahead Gives You Options

Understanding your financial options now can lead to a smoother transition later. Whether you’re still years away from needing care or looking to move soon, here are a few next steps:

• Talk to a financial advisor familiar with long-term care planning
• Review any LTC or life insurance policies you already have
• Explore veterans’ benefits with a trusted advisor
• Consider your home equity and timeline for selling
• Ask about pricing models and what services are included at different communities

At Meth-Wick, we’re happy to help you explore your options and figure out what makes the most sense for your goals. We’ve walked this road with many families, and we’re here when you’re ready.

Need Help Understanding Your Options?

Contact us today to learn more about financial planning for senior living at Meth-Wick Community.