Can Medicare Supplement Insurance Plans Be Used to Pay for Assisted Living?

Medigap plans exist to help Medicare beneficiaries pay for services that Original Medicare leaves uncovered. Vision, dental and some prescription drugs are typically included in most Medicare supplemental policies. Residential care, such as short-term stays in nursing care homes and post-acute rehabilitation facilities, are partly paid for by Medicare Part A and many Medigap insurance plans. Memory care and hospice stays may also be included as Medicare or Medigap benefits. Together, these policies can bring some medically oriented residential care services into the price range of many seniors.

Assisted living is different from other forms of residential senior care. Because the services offered by assisted living facilities are not primarily medical in nature, despite medication management and care coordination with residents’ physicians, Medicare and the insurance companies that offer supplements do not pay for them. These programs also do not usually cover the cost of alternatives to assisted living, such as in-home caregiver assistance and adult day health services.

Medicare and Medigap are not the only resources available for seniors who need help with the cost of residential care. Seniors with limited income and assets often choose Medicaid as their Medicare supplement. Though Medicaid also does not pay for long-term care in assisted living, beneficiaries in many states can sign up for an assisted living waiver program.