When a loved one begins to need senior care, one of the first questions families ask is: Will Medicaid cover this? It’s a question that often comes with confusion, concern, and a fair amount of misinformation.
At Morning Pointe Senior Living, we know how important it is to make informed decisions about care and finances. That’s why we’re breaking down the basics of Medicaid—what it is, what it covers, and some common myths we hear from families. Here are 7 of the common misunderstandings regarding Medicaid and assisted living.
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1. “Medicaid and Medicare are the same thing.”
👉 Very common confusion.
- Medicare is age-based and often covers rehab, hospital, and limited skilled nursing—not assisted living.
- Medicaid is income-based and may cover nursing home care with strict rules.
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2. “Medicaid will pay for my parent’s assisted living.”
👉 Not usually true.
Medicaid does not cover standard room and board in assisted living in most states. It may cover certain services (like personal care or nursing), but not the full cost of living in the community. Again, it is income-based.
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3. “Once someone qualifies for Medicaid, everything is covered.”
👉 It depends.
Qualifying financially doesn’t mean coverage applies to all types of care. Medicaid is needs-based and service-specific—coverage varies by state, and many services require prior approval or are limited in scope.
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4. “Assisted living and nursing homes are the same when it comes to Medicaid.”
👉 Very different.
Medicaid is much more likely to cover care in a nursing home (skilled nursing facility) than in assisted living. It comes with restrictions, varies from state to state and has financial qualifications.
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5. “We can apply for Medicaid whenever we need it.”
👉 Timing matters.
It often takes weeks or months to apply, qualify, and find a Medicaid-approved provider. Planning ahead with an elder law attorney or care advisor can prevent crisis situations.
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6. “If Mom owns a home, she can’t qualify.”
👉 Not necessarily true.
Primary residence exemptions exist under certain conditions. But asset protection and spend-down rules are complex and vary by state—professional advice is key.
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7. “Every assisted living community accepts Medicaid.”
👉 Nope.
Many communities are private pay only or accept Medicaid only through specific waiver programs, which often have long waitlists.
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Other Payment Options
Good news: other payment options you may not have considered:
- Equity in your home
- Income from retirement plans, pensions, annuities, and Social Security
- Long-term care insurance
- Veterans aid and attendance benefits [will include link to that pdf]
- Sale of stocks or bonds, or conversion of mature certificates of deposit
- And more…
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Final Thoughts
Navigating paying for senior living can be overwhelming—but you don’t have to do it alone. At Morning Pointe Senior Living, our team is here to help guide families through the process, connect you with the right resources, and provide care options that meet both your loved one’s needs and your budget. We walk families through these questions all the time.
Visit our webpage for more information on options to pay for assisted living and memory care here.
For the best information for your specific situation, check with a local Medicaid specialist. Call your local Area Agency on Aging for recommendations.
* Morning Pointe Senior Living is not offering professional financial advice.
