Understanding How to Pay for Senior Living: What You Need to Know

Aging brings natural concerns—one of the biggest being, who will care for me when I can no

longer care for myself—and how will I afford it? Budgeting for senior care is one of the most

important steps you can take to ensure peace of mind and access to the right support when you

need it.

As a senior living advisor who helps families explore the best care options—at no cost to

them—I wanted to share a quick overview of the three primary ways families pay for

assisted living, memory care, or skilled nursing:

1. Private Pay

This is the most direct and common form of payment. You or your family pays the senior living

community out-of-pocket. Costs vary widely based on location and level of care. In Colorado, for

example, the average cost of assisted living is around $5,600/month. This typically includes

a base rent plus an additional care cost, determined by how much assistance you need with

Activities of Daily Living (ADLs).

Private pay is accepted across all levels of care—independent living, assisted living,

memory care, and skilled nursing.

2. Long-Term Care Insurance (LTC)

If you have a long-term care insurance policy, it may cover some or all of your senior living

expenses, depending on your plan. These policies generally kick in once you’re living in a

licensed care setting—not for independent living or age-restricted communities (55+).

Every policy is different, so it’s essential to contact your provider to understand your benefits.

If you're still eligible to purchase LTC insurance, it might be worth considering as part of your

long-term planning.

3. Medicaid Long-Term Care Waiver

This state-run program helps those who qualify financially to cover the cost of care. Note that

Medicaid Long-Term Care is separate from standard Medicaid and requires a specific

application.

If approved, it may cover assisted living, memory care, or skilled nursing costs—but not

independent or 55+ communities. Not all communities accept Medicaid, and many require a

private-pay “spend down” period—ranging from a few months up to three years—before

accepting Medicaid coverage.

Additional Resources:

Veterans Affairs (VA) Benefits and Medicare may also assist with care costs under specific

circumstances. For example, veterans may be eligible for monthly financial support, and

Medicare can cover short-term skilled nursing or rehab stays.

Navigating senior living options and payment methods can be overwhelming—but you don't

have to go through it alone.

If you or someone you know is starting this journey, I’m here to help. I offer free, expert

guidance to ensure you have the knowledge and support you need to make the best possible

decision for yourself or a loved one.

📞 Call me at 970-227-1148

Let’s take the next step together—with clarity, confidence, and care.

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