Get started free with our free intro course!

Get started free with our free intro course!

Celebrating 10 Years of Doing Good & Doing Well!

Does Medicare Cover Assisted Living — Featured Image

Does Medicare Cover the Cost of Assisted Living?

The federal government gives money to the state government for Medicare. The state then creates their own program based on the needs of the residents in their state. 

There are all types of care facilities and most assisted living facilities help with some of the activities of daily living, like bathing, dressing, using the bathroom and meals. Whether they offer nursing services or help with medications varies by state. The definitions of the various care facilities and the services they provide will determine which ones are covered by an individual state’s medicare program.  

Most states have a formula that basically says that a senior should prove that he/she had no income and no assets.

Tip: Assets will be liquidated and spent on the senior’s care before the government’s going to pay

Their income, if they’ve got income (example: from social security $1,000 a month), the typical formula is they’ll say to that resident: “We’ll let you keep $100 of your own social security. We’ll take the other $900 and apply that towards the assisted living.” Then they’ll say, “We, as a state, we’re willing to pay $60 a day.” That’s $60 x 30 days/mo., that’s $1,800/mo. Out of your social security, you’re going to pay the first $900. The state will only pay the extra $900. That means the homeowner is going to get $900 from the state and $900 from the social security for a total of $1,800 a month. I’ve already told you the average cost is $3,750 per resident, per month.

Your Question: How can I operate a profitable business at half the rate of average?

  • You can’t have a lot of caregivers. 
  • You can’t have great food or a great facility. 
  • There’s not enough money on the table. 

That’s why I train you to focus on people who have the money to pay.

At the RAL Academy we train students to focus their business model and cater to those that can pay for their own care, i.e. private pay. Obviously, not everyone can afford this and there are many homes that will accept whatever the state will pay for as well. 

This is one of the reasons we let people know that “you’ll be getting involved in Assisted Living, one way or the other”  you’ll either own the real estate, the business or both. Or you or a loved one may be lying in a bed paying someone else to care for you.   Its best to choose how you will be “involved” now and to be prepared. Even having just one home now, will provide for you today and protect you and your family tomorrow.

We can only take care of so many people. Let’s focus on the ones that can afford to pay us for the great service we will give them so we can help them, have a great product and make some good money doing good and doing well.

If you have more questions about residential assisted living and how you can get started, go to

Email This Article

RALAcademy FREE Introductory Course

Learn how Residential Assisted Living Will Work for You!

What’s the best email to send your course access info to?

Your privacy is protected.

Get Access to the One & Done Formula!

Complete the fields below and we’ll send your access link to the webinar via email.

Privacy Policy: We hate spam and promise to keep your email address safe