Does Social Security Pay For Nursing Homes?
August 29, 2023 / Nursing Home
The costs of most things continue to rise year after year, and long-term care costs are no exception. With the average monthly cost of a private room in a nursing home reaching more than $8,000 this year, many families have to work to figure out an alternative option for covering these costs for their loved ones who need the skilled care and supervision that a nursing home provides. The team at Senior Care AZ, a senior placement agency in Arizona, is breaking down how social security may help cover the costs of a nursing home, including an explanation of benefits and how social security might assist with other long-term care options for seniors.
What Are Social Security Benefits?
Social Security is the leading source of income for individuals between the ages of 60 and 89 in the United States, covering about 50% of their post-retirement income. The Social Security Administration has created several programs that benefit seniors, depending on their qualifications and eligibility. The funding for Social Security benefits is based on a person’s lifetime earnings and comes from both employee and employer contributions over the course of their career. The average monthly social security benefit is $1,691.53. There is no income limit on social security benefits, nor is there a resource limit. To receive the social security benefit, an individual must have earned enough work credits throughout their career. Any other income does not affect your social security benefits, and who you live with or where you live will not affect your social security benefits.
Supplemental Security Income (SSI) Benefits
For low income adults with disabilities who may not be eligible for disability coverage, the Supplemental Security Income benefits program was created. The average monthly benefit for individuals over the age of 65 who qualify for the SSI benefit is $553.94. The SSI benefit has a limited income and limited resources. No work credits are required to be eligible for the SSI benefit. The benefit amount is based on state and federal laws as opposed to lifetime earnings, and other income may affect your SSI benefit. Where you live and who you live with may also affect your SSI benefit. You must report other income, as well as living arrangements, to the social security administration.
Some seniors may be eligible to receive both the regular social security benefits and the SSI benefits on a monthly basis. These benefits are significant when it comes to assisting seniors with the costs of living, but when compared to the cost of monthly nursing home care, the benefits coming in from social security, on average, will not be enough to cover the costs of monthly nursing home services.
Does Social Security Pay For Nursing Home Care?
Social Security will not pay for nursing home expenses in full, but it may be available to cover some of the costs associated with nursing home care. Nursing homes are designed to provide the highest level of supervision and care for aging adults who need round the clock care, supervision, medical assistance and medication management, assistance with the activities of daily living, and palliative or hospice care. Due to the many services a nursing home is designed to provide, the cost of care is extremely high—on average, more than $8,000 per month for a private room. Social security benefits will cover only about 18% of the costs for individuals who live in a private room in a nursing home and only 21% of the costs for individuals who live in a shared room in a nursing home. For individuals who receive only the SSI benefit, these percentages of costs covered by their benefits drop significantly.
Does Social Security Pay For Other Senior Living Options?
Social Security benefits can be a reliable source of income for seniors, but with long-term care options, the benefits are generally not enough to cover the costs, even with long-term care options that are less expensive than nursing homes, like assisted living. Social Security income can be used to cover a portion of these costs, and supplemental income or other governmental assistance may be used to cover other costs associated with senior living options.
Does Social Security Pay For Assisted Living?
Assisted living communities provide seniors with a safe and secure place to live where they can live independently while having access to minimal assistance with the activities of daily life if needed. Assisted living facilities generally provide basic medication management while encouraging independence and socialization with their peers and community. On average, assisted living costs $4,500 per month, which will be covered at a higher percentage by social security benefits than nursing homes but will not be covered 100% by the average social security monthly benefit.
Does Social Security Pay For Memory Care?
A memory care facility is a secure residential facility that is designed to provide care for individuals with some form of dementia or Alzheimer’s. Memory care facilities are designed as a transitional space for residents who still have some level of independence but will likely not be able to return home to independent living due to memory decline. On average, memory care facilities cost $5,400 per month, which will be covered at a higher percentage by social security benefits than nursing homes but will not be covered 100% by the average social security monthly benefit.
How to Pay For Nursing Home Costs
After using their full social security benefits to cover the costs of nursing homes, seniors will still have large expenses to cover through other means. Other options regarding how to pay for nursing home care generally include a mix of state or federal funding, insurance policies, personal savings, or gifts or assistance from loved ones. Many seniors and their families will use a mix-and-match approach to cover these costs through a variety of different funds and methods.