Does Medicare Pay for Senior Retirement Living?

In general, Medicare does not cover the expense of senior retirement living. Over half of all individuals on Medicare who live in a nursing home pay for their own services. There are some limited situations where Medicare will pick up the bill. Otherwise, it is up to participants to elect supplemental services to cover the expense.

Background

• Medicare will cover your stay in a nursing home only if you enter the senior center after a qualifying hospital stay. You must be in the hospital for at least three days prior to entering the senior-care center, and you must be in a facility approved by Medicare to provide long-term senior care. This may mean a Medicare employee will perform an evaluation of your facility. You may also have to undergo an examination by a Medicare approved doctor in order to qualify for coverage.

Options

• Medicaid is only available to individuals without personal resources to cover the necessary medical expense of a nursing home. If you are in a home long-term, you will likely eventually benefit from Medicaid. The cost of retirement homes and the strain they place on your savings will qualify you eventually, but you may have to cover costs for a number of years before this occurs.

Alternatives

• If you need to go to a senior retirement center but are not covered under Medicare or Medicaid, consider other insurance options. You may elect supplemental health insurance that will cover costs associated with the facility not covered by Medicare. For example, Medicare may pay for your nurses and doctors appointments but not for your meals. In this case, supplemental insurance may kick in. You may also opt to fund your stay privately through your retirement savings or through a private insurance plan.

Considerations

• Due to the high cost of senior-living centers, consider other options. For example, consider having an elder care nurse come to your home. This may be partly covered by federal plans. You may also consider moving into an assisted-living home, which can be cheaper than a full-service home, or into a subsidized senior living home.

Warning

• Failing to plan for the cost of senior retirement living can leave you with subpar care. Even with Medicare and Medicaid benefits, your care may suffer if you cannot personally supplement the payments. Use life insurance, retirement and annuity plans in order to fund your retirement fully. If you don't know how much to save, consult the Internal Revenue Service's guides or a retirement professional.