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Does Medicare Pay for Assisted Living? A Comprehensive Guide to Coverage

7 minute readLast updated October 2, 2023
Written by Chacour Koop
fact checkedby
Danny Szlauderbach
Reviewed by Letha McDowell, CELA, CAPCertified Elder Law Attorney Letha Sgritta McDowell is a past president of the National Academy of Elder Law Attorneys.
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Medicare doesn’t pay for assisted living. However, you can use it to help cover the costs of some medical needs in assisted living. This includes things like medications, treatments for chronic conditions, and products like bandages. Medicare will also usually cover the cost of visiting doctor visits or on-site therapy. Seniors will still need to pay for their room and board in a community, which isn’t covered by Medicare. To do this, many seniors use private pay methods.

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Key Takeaways

  1. Medicare doesn’t pay for custodial care, a term that refers to caregiver assistance with things like bathing and dressing.
  2. Medicare doesn’t pay for room and board in an assisted living or memory care community.
  3. Medicare will cover the cost of some medical services received in assisted living, such as medications and on-site therapy or doctor visits.
  4. Medicare does cover hospice care in assisted living, provided the senior meets all requirements.

Understanding Medicare and assisted living

Medicare is federal health insurance for people over 65, younger people with disabilities receiving Social Security benefits, and anyone diagnosed with Amyotrophic Lateral Sclerosis (ALS) or end-stage renal disease. It covers medical care such as doctor visits, prescription drugs, and stays at a hospital.[01]

Assisted living is a senior housing option designed for older adults who are still moderately active and independent, but who may need help with certain daily tasks. Assisted living provides help with personal care such as bathing, using the bathroom, or preparing meals, which are all considered nonmedical care.

A graphic with 2 columns that list what medicare covers and doesn't cover

Does Medicare pay for assisted living?

Medicare doesn’t pay for room and board or nonmedical care in assisted living or many other types of long-term care.[02]. However, Medicare normally covers the cost of medical services offered at a community by third-party providers.

For example, an assisted living community might partner with an independent home health care agency for physical therapy, or they may host appointments from a visiting doctor. In some cases, they’ll provide injections for residents with diabetes or change bandages. These medical services would usually be covered by Medicare.

Medicare Supplemental Insurance, also called Medigap, and Medicare Advantage plans don’t pay for assisted living rent either, but they may pay for the services mentioned above.

Can you afford assisted living?

Let our free assessment guide you to the best senior living options, tailored to your budget.

Does Medicare cover assisted living for people with dementia?

Medicare doesn’t cover the cost of assisted living or memory care for seniors with dementia. It may cover some of the medical costs associated with dementia, such as:

  • Cognitive assessments
  • Care planning
  • Hospital stays
  • Prescriptions

Like assisted living, memory care offers seniors a safe, secure, and residential environment in which to age. However, memory care is designed for older adults with dementia or cognitive decline.

Seniors with dementia may benefit from a Medicare Special Needs Plan (SNP).[03] A Medicare SNP is a type of Medicare Advantage Plan that’s limited to people with specific diseases or conditions. An SNP tailors the benefits, providers, and covered drugs for people in the group they serve.

Someone with dementia could be eligible for a Medicare SNP if they have Medicare Part A and Medicare Part B and reside in the plan’s service area.[04]

How much does Medicare pay for assisted living?

Based on the information above, you know that Medicare doesn’t cover the residential costs of assisted living or memory care. However, there are ways your family can use Medicare benefits to augment savings and personal funds when paying for senior living.

When Medicare can cover long-term care services: Nursing facilities, medical supplies, and hospice care

Your loved one’s Medicare benefits can cover long-term care services offered in assisted living communities under certain circumstances.[01] It also may cover other types of long-term care, like brief stays in nursing homes or skilled nursing facilities (SNFs).

Medicare benefits in assisted living communities include the following:

  • Medical supplies like wheelchairs, oxygen, and walkers
  • Physical, occupational, or speech therapy
  • Part-time or intermittent skilled nursing
  • Medical social services to cope with issues from an illness

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If a doctor determines these supplies or therapies are necessary to treat an injury or illness, your loved one can benefit from them in an assisted living or memory care community, in another senior care facility, or at home.

Medicare will pay for a short-term stay at a nursing home or SNF if a senior meets these three criteria:

  • They were in the hospital for at least three days.
  • They were admitted to a Medicare-certified nursing facility within 30 days of their hospital stay.
  • They were in need of skilled care or rehabilitation services as a result of their medical conditions.

Medicare can pay for at least part of the costs up to 100 days. During the first 20 days, it covers the total cost. A daily copayment is required for the remainder of the time period. Medicare will only pay if the patient makes improvement in therapy or if skilled care is needed to prevent a decline in their physical condition.

Medicare will pay for hospice in an assisted living community if your loved one fits these criteria:

  • They have decided to no longer seek treatment for a terminal illness.
  • A doctor has determined they have a life expectancy of six or fewer months.
  • They wish to use medication or therapy to control symptoms or pain from a chronic condition.

Some of the services that Medicare may cover in hospice include drugs to control symptoms or pain, medical and support services, some respite care, and grief counseling.

Other ways to pay for assisted living

The nationwide median monthly cost of a one-bedroom apartment in an assisted living community in the U.S. is $4,995, according to A Place for Mom’s 2024 Cost of Long-Term Care and Senior Living Report, a price that leaves many seniors searching for ways to pay for care.[05] While Medicare doesn’t cover assisted living, there are other ways to pay for assisted living. Many seniors use savings to finance assisted living, but some other options to consider include the following:

  • Veterans benefits
  • Home equity
  • Long-term care insurance
  • Life insurance
  • Medicaid in some states

A Place for Mom’s Senior Living Advisors also provide expert guidance about finding local assisted living that fits a senior’s unique needs and price range. Plus, they can help set up tours, compare options, and plan the logistics of a move — all at no cost to families.

Families also ask

No, Medicare Part B doesn’t pay for assisted living. Medicare typically only pays for medically necessary services, such as doctor visits, preventive screenings, or necessary medical equipment.

No, Medicare doesn’t pay for a short-term stay in assisted living since caregiver assistance with personal care tasks isn’t medically necessary. Medicare does pay for medically necessary short-term care in a nursing home, since skilled nursing is considered medically necessary.

Yes, Medicare does pay for a hospital bed if a doctor prescribes it since it’s considered durable medical equipment. However, hospital beds are not regularly provided in assisted living.

Medicare doesn’t pay for any days in assisted living. Medicare will pay for up to 100 days in a skilled nursing facility, but seniors can expect to have copays during this time.

No, Medicare doesn’t pay for adult diapers that seniors may need in assisted living. These and other incontinence supplies are typically paid for out of pocket or with a health savings account .

Yes, Medicare pays for rehabilitation offered at an assisted living community. In order to be covered, therapy must be considered necessary to help a senior meet a health goal. It’s important to note, though, that not all assisted living communities offer on-site rehabilitation services.

SHARE THE ARTICLE

  1. Administration for Community Living. (2020, February 18). What is Medicare and what does it cover? LongTermCare.gov.

  2. Centers for Medicare and Medicaid Services. (2020, December). Items and Services Not Covered Under Medicare.

  3. Centers for Medicare and Medicaid Services. Special Needs Plans (SNP).

  4. Centers for Medicare and Medicaid Services. How Medicare Special Needs Plans (SNPs) work.

  5. Genworth. (2022, June 2). Cost of Care Survey.

  6. A Place for Mom. (2022). A Place for Mom proprietary data.

Written by
Chacour Koop
Chacour Koop is a former copywriter at A Place for Mom, where he published articles focused on Medicare, Medicaid, dementia, and wellness with a hope that other families can use the information to improve their lives. As a former family caregiver, Chacour Koop strives to bring practical knowledge about senior care to readers who are navigating this complex topic. Before writing about senior living, he was a journalist with bylines in The Associated Press, Miami Herald, Sacramento Bee, and dozens of other publications. He earned a degree in journalism from Eastern Illinois University and a master’s degree in public affairs reporting from the University of Illinois Springfield.
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Danny Szlauderbach is a Video Producer and a former Managing Editor at A Place for Mom, where he's written or reviewed hundreds of articles covering a wide range of senior living topics, from veterans benefits and home health services to innovations in memory care. Since 2010, his editing work has spanned several industries, including education, technology, and financial services. He’s a member of ACES: The Society for Editing and earned a degree in journalism from the University of Kansas.
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Certified Elder Law Attorney Letha Sgritta McDowell is an elder law attorney and past president of the National Academy of Elder Law Attorneys.
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