The most common payment methods for nursing homes include health care programs like Medicare and Medicaid, as well as private insurance. Eligible veterans and their spouses can also apply for veterans benefits to cover nursing home costs. However, most families need to supplement these options with private pay methods such as savings, retirement funds, life insurance, or long-term care insurance. There are many payment options to choose from, and in most cases, people use a combination of different sources.
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Medicare will cover short-term nursing home stays, but won’t cover long-term stays.
Original Medicare fully covers the first 20 days of care in a nursing facility, then pays $209.50 each day for days 21-100. After that, coverage stops.[01]
Medigap or Medicare Advantage plans typically don’t cover nursing home expenses.[02] However, Martin Sbriglio, CEO of Ryders Health Management — a group of nursing homes in Connecticut — and licensed registered nurse, recommends that people consider adding a Medigap plan to their Original Medicare plan.
“If you can afford it, it’s good to buy a supplemental policy,” Sbriglio says. These plans can help reduce your out-of-pocket costs, such as copayments, coinsurance, and deductibles that arise during the 100-day period of nursing home coverage.[03]
Medicare Advantage plan policyholders are sometimes unpleasantly surprised by their coverage. Some insurance companies that offer Medicare Advantage plans, also known as managed Medicare, don’t always offer as much coverage as Original Medicare. Depending on the company offering Medicare Advantage, nursing home care may only be covered if the nursing home has a contract with that Medicare Advantage plan.
Unlike Medicare, Medicaid will pay for extended nursing home care for people who meet income and financial asset requirements. To pay for nursing home care with Medicaid, you must choose a Medicaid-certified facility.
It’s also important to note that nursing homes may limit the number of beds they offer to people paying with Medicaid, sometimes known as a “Medicaid bed.” Some facilities don’t limit the number of Medicaid beds they have, while others only have a few.[04]
Private health insurance policies vary, but you can expect most policies to cover only medically necessary services, such as:
Personal care services, such as activities, dining plans, and housekeeping are less likely to be covered by private insurance.
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The U.S. Department of Veterans Affairs (VA) may provide long-term nursing care to qualified veterans and their spouses. Veterans and their spouses must already be signed up for VA health care and meet enrollment and eligibility requirements based on income, disability level, and location. In some cases, eligible veterans may qualify to live in specific VA nursing homes.
While benefits can often be put toward the cost of nursing home care or other long-term care options, it’s best to consult the local VA department or a recognized veterans service organization (VSO) for benefits counseling.
Read more:Veterans Benefits Guide
Most nursing homes are categorized as custodial care, and long-term care insurance is designed to pay for custodial care, as well as personal care.
“Long-term care insurance has gotten very expensive,” says Sbriglio, “but I do recommend it.”
Long-term care insurance policies can have high premiums, and not paying the premiums can often result in a loss of coverage. It’s also important to note that if a senior is already in a nursing home, it’s not possible to purchase a new plan. Many companies don’t sell policies to older seniors or seniors who already need care.
Life insurance offers another way to pay for a nursing home. If your loved one has a life insurance policy, read it carefully to find the best way to finance a nursing home. In many cases, seniors can convert a portion of their policy to help them pay for their care needs, while leaving the remainder of the policy as a death benefit.
Alternatively, your loved one could sell the policy to a third party at market value or surrender their life insurance policy at cash value. Unfortunately, what seniors can expect to get in cash value is typically less than what they’ve invested over the years. However, it may be enough to help pay for their nursing home stay.
If you’re a couple, one or both should have separate life insurance policies with the other as beneficiary. That could help pay for long-term care needs. There are so many new policies these days that provide an investment opportunity, as well as a life insurance benefit.
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Many seniors and their families use savings and other private pay options to pay for a nursing home. As of 2025, the median cost for a private room in a nursing home increased to $127,750 per year.[05] For many families, this means that benefits alone won’t completely cover nursing home costs.
Sbriglio notes that with rising inflation, payment can be a pain point for many families. He recommends that people plan as early as possible for their future care needs.
The following are common options to help pay for a nursing home stay:
Nursing homes are the most expensive type of senior care because they provide the highest possible nursing care next to a hospital. This level of care might not be necessary, so you may want to discuss other care options with one of A Place for Mom’s Senior Living Advisors. They’ll ask questions to get a clear understanding of your loved one’s care needs and make recommendations in your area. You may want to consider assisted living or home care if your loved one doesn’t yet need 24-hour, hands-on nursing care.
Nursing homes cost an average of $9, 277 per month for a semi-private room, or $10, 646 per month for a private room. Where you live and the amount of care you need can also affect your monthly cost.
Medicare and Medicaid are the most common payment sources for nursing home care. However, Medicare’s nursing home coverage ends after 100 days in a skilled nursing facility. Medicaid doesn’t place a limit on the length of a senior’s stay, but you may have to wait for a Medicaid bed to be available.
The least expensive type of long-term care with 24-hour oversight is assisted living. The national median cost of assisted living is $5, 190 per month. However, costs differ depending on care needs, location, and room size. Compare options with our cost of long-term care report.
You can avoid paying your deceased mom’s nursing home bill if you didn’t sign their contract as the responsible party. Generally, your mom’s estate will be responsible for paying her bill. But you may want to consult a lawyer if you’re concerned that you might be legally responsible.
Medicare. Skilled nursing facility care.
Medicare. Nursing home care.
Medicare. Learn what Medigap covers.
National Council on Aging. (2025, April 29). Does Medicaid pay for nursing homes? A comprehensive guide.
Genworth. (2024). Cost of care survey.
National Institute on Aging. (2023, October 12). Paying for long-term care.
Social Security Administration. (2025). Understanding the benefits.
National Association of Realtors. (2024, July 7). Quick real estate statistics.
The information contained on this page is for informational purposes only and is not intended to constitute medical, legal or financial advice or create a professional relationship between A Place for Mom and the reader. Always seek the advice of your health care provider, attorney or financial advisor with respect to any particular matter, and do not act or refrain from acting on the basis of anything you have read on this site. Links to third-party websites are only for the convenience of the reader; A Place for Mom does not endorse the contents of the third-party sites.
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