Does Medicare pay for assisted living?
No. Medicare does not pay for assisted living or other long-term custodial care. It covers medical care, short rehab stays after a qualifying hospital stay, limited home health, and hospice.
Guides
Does Medicare pay for assisted living?
This is the question I hear most from families, usually right after a hospital stay. The honest answer is no, Medicare does not pay for assisted living. But that's not the end of the story. Here's what Medicare does cover, and what actually pays for care in New Jersey and New York.
This is not medical or financial advice. Confirm coverage with your plan or your state Medicaid office.
The short answer
Medicare pays for medical care: doctors, hospitals, prescriptions, some therapy. Assisted living is mostly help with daily life, like bathing, dressing, meals and medications, plus rent. Medicare calls that "custodial care," and its own website says plainly that you pay all of those costs.
So if a hospital social worker says "Medicare will cover rehab," that's about a short stay in a skilled nursing facility. It's not assisted living, and it ends.
What Medicare does cover
Rehab after a hospital stay: if your parent was admitted to the hospital for at least 3 days in a row (not just "under observation"), Medicare can cover up to 100 days in a skilled nursing facility. In 2026, days 1 to 20 cost $0 after the $1,736 hospital deductible. Days 21 to 100 cost $217 a day. After day 100, Medicare stops.
Home health: if your parent is homebound and needs part-time skilled care like a nurse or therapist, Medicare can send someone to the house. It does not pay for 24-hour care or for an aide who only helps with bathing and dressing.
Hospice: Medicare covers hospice care, but not room and board, whether that's at home, in a nursing home or in assisted living.
Some Medicare Advantage plans add a little in-home help, like a few hours from an aide or meals after a hospital stay. It varies a lot by plan and it's never enough to pay for assisted living. Call the number on the card and ask.
What actually pays for assisted living in New Jersey
Most families start with their own money: savings, income, or selling the house. When that runs low, New Jersey Medicaid can help through a program called MLTSS.
MLTSS pays for the care part of assisted living (the help with daily life), but not the rent and food. Your parent pays that part from their own income. In 2026, a single person can have up to $2,982 a month in income and generally no more than $2,000 in savings. If income is higher, there's a legal tool called a Qualified Income Trust that can still make them eligible. Not every assisted living accepts Medicaid, so ask each place directly.
If your parent is 60 or older, needs nursing-home-level care, and isn't on Medicaid, New Jersey's JACC program can pay for up to $1,090 a month in services to help them stay at home. In 2026 the limits are $4,855 a month in income and $40,000 in savings for a single person.
What assisted living costs (2025 survey)
| New Jersey | New York | |
|---|---|---|
| Assisted living, per month | $8,710 | $7,110 |
| Nursing home, semi-private room, per month | $12,775 | $15,528 |
| Nursing home, private room, per month | $14,448 | $16,729 |
Median costs from the CareScout 2025 Cost of Care Survey. The national median for assisted living is $6,200 a month. New Jersey is the 5th most expensive state.
What actually pays for assisted living in New York
New York has an Assisted Living Program, called ALP, for people who medically need nursing-home care but can live in assisted living instead. For Medicaid members it can cover the care, the room and the meals. Spots are limited and you need approval from your county's Medicaid office first.
In 2026, New York Medicaid for seniors allows up to $1,836 a month in income and $33,038 in savings for a single person. That's much more room than New Jersey's $2,000.
You may have heard about a 30-month look-back for home care in New York. It was passed in 2020 but, as of mid-2026, it still isn't being enforced. The 5-year look-back for nursing homes does apply. Because this keeps changing, talk to an elder law attorney before moving money around.
Other ways families pay
Veterans: the VA's Aid and Attendance pension can pay a veteran up to $29,093 a year (about $2,424 a month), or $34,488 with a spouse, if they need help with daily activities and meet the income and net worth rules.
Long-term care insurance: if your parent bought a policy years ago, dig it out. Many cover assisted living.
Selling the house: a lot of our families use the home to pay for care. If that's you, see selling the home so care can start.
Free help with Medicare questions
Both states have free, unbiased Medicare counselors. In New Jersey, call SHIP at 1-800-792-8820. In New York, call HIICAP at 1-800-701-0501. And if you just want someone to sit down with you and sort out the options, that's what we do. You don't pay us anything.
Common questions
Does Medicare pay for memory care?
No, for the same reason. Memory care is a type of assisted living. Medicare still covers your parent's doctors, prescriptions and hospital care while they live there.
Does Medicaid pay for assisted living in NJ?
It can pay for the care part through MLTSS, but not the rent and food. In 2026 the limits for a single person are $2,982 a month in income and generally $2,000 in savings, and the facility has to accept Medicaid.
How long will Medicare pay for a nursing home?
Up to 100 days of skilled rehab after at least a 3-day inpatient hospital stay. Days 21 to 100 cost $217 a day in 2026. Long-term nursing home care is not covered.
Who can I call for free help?
New Jersey SHIP: 1-800-792-8820. New York HIICAP: 1-800-701-0501. Or call us and we'll walk through the options with you.
Sources
- Medicare.gov, long-term care coverage
- Medicare.gov, skilled nursing facility care
- CMS, 2026 Medicare Parts A and B premiums and deductibles
- Medicare.gov, home health services
- Medicare.gov, hospice care
- KFF, Medicare Advantage 2026 spotlight
- NJ DMAHS, Medicaid Communication 26-03, 2026 income standards
- NJ Division of Aging Services, programs side by side (2026)
- NY DOH, GIS 26 MA/05, 2026 Medicaid levels
- NY DOH, Assisted Living Program
- CareScout, Cost of Care Survey 2025
- VA, Veterans Pension rates
- NJ SHIP
- NY HIICAP