Creative Ways to Pay for Assisted Living (Even Without a Long-Term Plan)

Not everyone has a 20-year plan for retirement and care costs. And when assisted living becomes a need—either suddenly or sooner than expected—it can feel overwhelming.

The good news? There are still ways to make it work. Let’s walk through some creative strategies that real families use to cover assisted living expenses.

1. Rent Out the Family Home

If your parent owns a home they’re no longer living in, renting it out can generate monthly income that helps offset assisted living bills. This works best if the home is paid off or has a low mortgage.

Some families also use bridge loans—temporary financing that helps pay for care while waiting for a home sale or other asset to become available.

2. Look Into Medicaid Waivers

All states offer Medicaid Home and Community-Based Services (HCBS) waivers that may cover some assisted living costs for eligible individuals. The specific programs, services, and eligibility criteria vary by state.

These waivers are not automatic—you’ll need to meet income and asset requirements, apply through your local Human Services office, and provide documentation. If you qualify, this can dramatically reduce your monthly costs.

3. Compare All Care Options

While assisted living seems expensive, it’s still often cheaper than:

• 24/7 in-home care at $33/hour
• Full-time nursing home care (which can run $8,000–$9,700/month)

If medical needs are moderate and someone just needs help with daily tasks, assisted living may be the most cost-effective option in the long run.

4. Talk to a Medicare Professional (Hi, That’s Me)

Medicare doesn’t pay for assisted living, but it still plays a huge role in covering medical needs during this stage of life. Understanding what’s covered—and what isn’t—can help you avoid unnecessary costs and delays.

I can also connect you with financial planners, elder law attorneys, and local services who specialize in this kind of planning.