Paying for an Assisted Living Facility

Long-term care is a subject often not thought about till later in life and caring for loved ones over the age of 65 can be a daunting task and sometimes assistance is needed. When it comes to assisted living, there are many factors that can easily overwhelm family members and cost is one of them. 

Luckily, Bay Vista Assisted Living offers a variety of options for families in the New York area that can ease the worries and stress of finding ways to pay for an assisted living facility near you.  

Using VA Benefits

The Department of Veterans Affairs offers a program that surprisingly not many veterans and their families know about. It’s called the Aid and Attendance program (A&A). It is a pension that is awarded to those who require assistance from another person to perform daily living activities, such as dressing, bathing, and feeding. All of these services are provided by Bay Vista Assisted Living. 

Current rates include $2,051 monthly for an eligible veteran, up to $1,318 monthly for a surviving spouse with no dependents, and up to $2,431 monthly for a veteran with a non-veteran spouse through the A&A program.

Insurance: Medicare, Medicaid, LTCI, and Life Insurance

Insurance policies are one of the many ways to cover the cost of assisted living facilities. But what are the differences? Which one is right for you? Below is an explanation of a few common policies that families can consider.

Medicare v Medicaid

The big difference between Medicare and Medicaid when it comes to paying for an assisted living facility is simple: one does and one doesn’t. Medicaid does pay for assisted living programs. It is a joint federal and state insurance program that can cover long-term care services depending on state guidelines and whether or not those guidelines meet federal requirements. Some general covered services include: case management, transportation, and personal care services. 


A long-term care insurance policy (LTCI)  is purchased by a private insurance company to cover the cost of elder care. However, the best time to buy an LTCI policy is way before the policyholder even needs it, around ages 40-50. This is because premium prices vary and increase over time. Also, coverage can be denied to those with pre-existing conditions. 

Life Insurance

The process of using a life insurance policy to pay for long-term care is called a life settlement. It’s when you convert a current life insurance policy into money that can be used to fund long-term care services. A third party initially purchases this policy that is less than the death benefit amount but more than the surrender value. When the insured passes, the beneficiary, in this case, it would be the third party, receives the death benefit. 

Using a Reverse Mortgage

If someone owes a small amount on their mortgage or owns their home outright, they can convert some of the equity in their home into cash payments. This is called a reverse mortgage and Home Equity Conversion Mortgages (HECM’s) are the most common type. However, this type of payment only works when the spouse of the institutionalized individual or the co-owner of the loan still resides in the home and maintains it.

Annuity Income

This is a contract between an individual and an insurance company that is designed to meet long-term care goals. The individual can make a lump-sum or periodic payments and in turn the insurance company will make periodic payments to you. 

Many use annuity income as a way to turn their savings into a steady and reliable stream of income that can be used to pay for long-term care.

Why Choose Us? 

At Bay Vista Assisted Living we value our residents and we offer premium care to ensure they only receive the best treatment and services at our facility. We believe in respecting our residents and recognizing them for who they are. Each individual is different, and our staff ensures that their needs are met through regular meetings with the resident and their families. To find our assisted living center near you, what other services we offer, and to schedule a tour to see if our facility is the perfect match for you and your loved one(s), please visit our website or give us a call at 516-897-1200.


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