With nursing home costs exceeding six figures annually, knowing how to pay is critical. Here are your main funding options.
What are the main ways to pay for nursing home care?
Four sources cover nursing home care. Medicaid is the largest payer of long-term custodial care nationally, covering low-income seniors who meet income and asset limits — many families use legal spend-down strategies to qualify. Long-term care insurance, if purchased before care is needed, pays a daily or monthly benefit. Veterans and surviving spouses may qualify for VA Aid and Attendance benefits. Private pay — savings, pensions, Social Security, and home equity (sometimes via a reverse mortgage or annuity) — covers the rest. Most families combine sources over time as savings deplete and Medicaid takes over. Call 1-800-MEDIGAP (1-800-633-4427) for free help mapping your options.
Does Medicare help pay for nursing home care?
Medicare's role is limited. It pays only for short-term skilled nursing care — up to 100 days following a qualifying three-day inpatient hospital stay, with full coverage for days 1-20 and a daily coinsurance for days 21-100. Medicare does not pay for long-term custodial care, which is what most nursing home residents need. A Medicare Supplement (Medigap) plan can cover the day 21-100 skilled-nursing coinsurance, easing that short-term cost. For the long-term stay itself, you'll rely on Medicaid, insurance, or private funds. Understanding this gap early prevents costly surprises. Call 1-800-MEDIGAP to learn how Medigap and other coverage fit together.