Can you count on Medicaid pay for assisted living?

Assisted living is different than a nursing home because it is for individuals who do not require the constant medical attention provided at a nursing home. As such, although Medicaid pays for nursing homes in many situations, it rarely can be used to pay for an assisted living residence.
Medicaid is a federal program, administered by states, that provides medical insurance to older individuals with few assets and a low income. The requirements for eligibility differ from one state to another, which is why the question of coverage arises frequently.
In certain states with less stringent rules, Medicaid may cover a certain amount of assisted living.
For example, some states allow Medicaid to be used for what is referred to as custodial care, the care that is required to maintain one's life and occurs under medical supervision but does not involve the aggressive treatment of any condition and no improvement is expected or sought. However, custodial care is often only covered under Medicaid if it is conducted within a nursing home. Many assisted living facilities do not accept it, even in states where they might be eligible to receive funding through this program.
Medicaid and Medicare consider long-term care to include both medical and non-medical components but usually only pays for the medical components. When you consider your long-term care plan, it is important to remember that the things you consider essential may not be the same as those considered essential by the government. In order to maintain the standard of living you enjoy, it is a good idea to develop a plan for paying for this phase of your life when you are younger, including savings and insurance along with other assets if appropriate.
When Medicaid Runs Out
When Medicaid is not sufficient to cover the costs associated with assisted living, there are several options available. Although not inexpensive, assisted living is generally less expensive than nursing home care, so some individuals are able to cover those costs from their private savings funds or with the help of family members.
Other seniors use the payments they receive through the Social Security program. These funds are dispersed to be used at the discretion of the individual who receives them, so they can be used for assisted living and any other costs that arise. In order to determine the best course of action for your specific scenario, begin by consulting the staff at your current facility. They will have the experience and knowledge about the rules of your particular state as well as the facility's own policies.