How to Pay for Assisted Living in California

The cost of assisted living in California averages $5,250 per month statewide, but varies significantly by region. In the Central Valley, families can expect costs ranging from $3,500 to $6,000 per month depending on the level of care. Understanding your options can make quality care more accessible than you think.

Cost of Assisted Living in California

7 Ways to Pay for Assisted Living

1. Private Pay / Personal Savings

The most common payment method. This includes personal savings, retirement accounts (401k, IRA), Social Security income, pension benefits, and income from investments or rental properties. Many families combine multiple income sources.

2. Medi-Cal (California Medicaid)

California’s Medi-Cal program can help pay for some assisted living costs through the Assisted Living Waiver (ALW) program. Eligibility requires:

• Income below $1,677/month for an individual (2024)
• Assets below $2,000 (excluding primary home, vehicle, and personal effects)
• Medical necessity for assisted living level of care
• The facility must accept Medi-Cal ALW participants

3. VA Aid & Attendance Benefits

Veterans and surviving spouses may qualify for the VA Aid & Attendance pension, which can provide up to:

• $2,431/month for a veteran
• $1,564/month for a surviving spouse
• $2,884/month for a veteran with a dependent spouse

Requirements include 90+ days of active military service (with at least 1 day during wartime), need for assistance with daily activities, and meeting income/asset limits.

4. Long-Term Care Insurance

If your loved one purchased a long-term care insurance policy before needing care, it may cover a significant portion of assisted living costs. Review the policy for daily/monthly benefit amounts, elimination periods, and qualifying conditions.

5. Life Insurance Conversion

Some life insurance policies can be converted to pay for long-term care through a life settlement or accelerated death benefit. A policy with a face value of $100,000+ may be converted to monthly care payments.

6. Reverse Mortgage

Homeowners age 62+ can access home equity through a Home Equity Conversion Mortgage (HECM) to fund assisted living costs. The home must be the primary residence (or have been recently).

7. Bridge Loans

Short-term financing options exist to bridge the gap while waiting for home sales, VA benefits approval, or Medi-Cal eligibility determination.

How Velora Helps Families With Payment Planning

At Velora Senior Living, we understand that financing senior care can feel overwhelming. Our admissions team provides:

• Free, no-obligation pricing consultations
• Help identifying all potential funding sources
• Assistance with VA benefits applications
• Guidance on Medi-Cal ALW eligibility
• Transparent pricing with no hidden fees
• Flexible payment arrangements