Last Updated: October 22nd, 2026
Paying for Assisted Living
Nothing should stand in the way of you or your loved one enjoying the golden years in comfort. At The Arbors & The Ivy, we know that planning for senior living can come with important financial questions. As a third-generation, family-owned organization, we’re here to help your family better understand community costs and the resources you may want to explore as you plan for the next chapter.
This guide can help you learn more about:
- VA benefits
- What Medicare and Medicaid may or may not cover
- Long-term care insurance
- Potential tax deductions
- Companion apartment options
- Other financial assistance programs
Our team can help explain community costs and point you toward resources to explore. Eligibility for government programs, insurance benefits, or tax deductions is determined by the appropriate agency, insurance provider, or financial professional.
VA benefits and aid and attendance for assisted living
Veterans and their families may be eligible for VA benefits that can help with some senior living expenses. VA Aid and Attendance provides an additional monthly amount to a VA pension for qualifying Veterans and survivors and may help with certain costs related to assisted living for veterans.
If you or a loved one receives a VA pension, additional requirements must be met to qualify for Aid and Attendance, such as needing help with daily activities like bathing, dressing, or eating.¹
Eligibility and benefit amounts depend on VA requirements and each person’s circumstances. The Arbors & The Ivy cannot determine eligibility or guarantee the amount someone may receive. For current information about VA Aid and Attendance, visit the U.S. Department of Veterans Affairs to learn more about eligibility and how to apply.
For more information about available support and community life, explore our assisted living for veterans resources.
Does Medicare cover assisted living?
Medicare generally does not cover the ongoing cost of assisted living. Medicare.gov states that Medicare does not pay for long-term care, including nonmedical assistance with everyday personal needs.2 This type of long-term care may be provided in an assisted living community.
Medicare may cover certain medically necessary healthcare services or short-term skilled nursing and rehabilitation when Medicare requirements are met. Skilled nursing care is different from ongoing assisted living and personal care.2
Families should review current Medicare guidelines or speak with Medicare directly to determine which services may be covered.
Does Medicaid cover assisted living?
Medicaid waiver programs in Massachusetts
Medicaid waiver programs in Connecticut
The Connecticut Home Care Program for Elders (CHCPE) may provide certain care and support services to eligible adults age 65 and older who meet the program’s functional and financial requirements.
The Connecticut Department of Social Services lists assisted living services among the services that may be available through CHCPE.6
Medicaid-funded assisted living services do not pay for room and board. Availability depends on current program requirements, the living setting, and individual eligibility, so families should confirm current information directly with the Connecticut Department of Social Services.7
Is assisted living tax-deductible?
Some qualified long-term care services may be tax-deductible under IRS rules. Because every family’s financial situation is different, our team cannot provide tax advice. We encourage you to speak with an accountant or financial advisor about whether any senior living or long-term care expenses may qualify for a deduction based on your circumstances.
Companion apartments and cost-sharing
A great option for residents who want companionship and a cost-effective retirement is to live with a roommate. Bring a senior friend to stay with you at The Arbors & The Ivy, or let us match you with someone to share the apartment and help reduce costs! A companion apartment means a private bedroom, with shared common areas like the kitchen and living room.
Other ways to help pay for assisted living
Every family’s financial situation is different. In addition to government benefits, insurance, and tax considerations, there may be other forms of assisted living financial assistance worth exploring.
Low-Income Housing Tax Credit program
The Low-Income Housing Tax Credit program (LIHTC) may help qualifying residents reduce monthly rental costs at participating communities.
The program may be available in these Massachusetts communities:
- Chicopee
- Greenfield
- Westfield
If your income falls within program guidelines, you may qualify for reduced monthly rental costs. Contact our team to ask about current availability at participating communities and where to find additional information about program requirements.
Other financial resources to explore
The American Elder Care Research Organization provides state-by-state information about senior living costs, assisted living loans, and other financial resources.
Some families may also want to ask a financial advisor whether options such as a reverse mortgage or resources connected to an existing life insurance policy could be appropriate for their circumstances.
These options can have significant financial implications, so they should be considered with guidance from a qualified financial professional rather than treated as a guaranteed source of assisted living funding.
Frequently asked questions
Does the VA pay for assisted living?
Eligible Veterans and survivors who receive a VA pension may qualify for additional Aid and Attendance benefits if they meet VA requirements.
The VA determines eligibility and payment amounts, so these benefits aren’t automatically available to everyone who moves to assisted living.1 The Arbors & The Ivy cannot determine eligibility or guarantee approval.
Does Medicare cover assisted living?
Medicare generally does not cover assisted living room, board, or ongoing personal care. It may cover certain medically necessary healthcare or short-term skilled nursing services when Medicare requirements are met.2 Families should check current Medicare guidelines for information specific to their circumstances.
Does Medicaid cover assisted living in Massachusetts or Connecticut?
Medicaid generally does not pay for assisted living room and board, but state programs may help eligible residents pay for certain care services.
Massachusetts has Group Adult Foster Care at participating assisted living residences, while Connecticut’s CHCPE includes assisted living services for qualifying participants. Program requirements and availability vary, so families should confirm current information directly with MassHealth or the Connecticut Department of Social Services.
Is assisted living tax-deductible?
Certain qualified long-term care or medical expenses may be deductible when IRS requirements are met. Because eligibility depends on individual circumstances, families should speak with an accountant or tax professional rather than assuming assisted living expenses are deductible.
What if I can't afford assisted living right away?
When paying for senior care feels difficult, it may help to explore several options rather than relying on one source.
Depending on eligibility and your family’s circumstances, you may want to research:
- VA benefits
- Medicaid or state assistance programs
- Long-term care insurance
- Potential tax deductions
- Companion apartments
- LIHTC options
- Other financial resources
A sales counselor at The Arbors & The Ivy can explain community costs and help your family understand which resources you may want to explore next.
Let our family help you understand your options
Paying for senior living can bring a lot of questions, and you don’t have to sort through them alone. As a third-generation, family-owned organization, The Arbors & The Ivy is here to help your family understand community costs, talk through your options, and find resources you may want to explore.
For generations, our family has focused on creating communities where residents and their families feel known, welcomed, and supported. That same family-first approach is part of how we help families navigate the financial questions that can come with choosing senior living.
When you’re ready, talk with a sales counselor to ask questions, learn more about our communities, and decide what next step feels right for your family.
Legal and financial disclaimer:
All information contained on this site is provided for general information purposes only, and is not intended to be a substitute for advice and information from a financial or tax advisor, attorney, accountant, or other professional regarding the options that are best for you.
The Arbors & The Ivy is not affiliated with and does not endorse any of the programs or organizations mentioned above. No assurances are made by The Arbors & The Ivy that any information contained on this site or provided by any of the programs or organizations mentioned above is accurate, complete, correct, or fit for any particular purpose or person. All information is subject to change without notice.
Sources:
- U.S. Department of Veterans Affairs. Aid and Attendance Benefits and Housebound Allowance. Accessed September 2026.
- Medicare.gov. Long-term care. Accessed September 2026.
- Centers for Medicare & Medicaid Services. 1915(c) Home and Community Based Services (HCBS) Waiver Financing and Payment Trends. Accessed September 2026.
- Mass.gov. MassHealth Group Adult Foster Care program fact sheet. Accessed September 2026.
- Mass.gov. Frail Elder Waiver: Information for applicants and participants. Accessed September 2026.
- CT.gov. Connecticut Home Care Program for Elders (CHCPE). Accessed September 2026.
- CT.gov. CT Home Care Program for Elders Community Options Assisted Living Services. Accessed September 2026.