How to pay for senior care in Minnesota
Most families pay through some mix of six sources: personal income and savings, long-term care insurance, veterans benefits, Medical Assistance (Minnesota’s Medicaid) and the Elderly Waiver, and help with housing costs. Medicare, despite what most people assume, does not pay for long-term assisted living or memory care.
CasperCare is always free for your family. We’re paid by providers only when a family we help chooses to move into one of their communities, and we always show you every licensed option, including the ones we aren’t paid for. Here’s exactly how we’re paid. Our job on this page is simply to help you understand your choices.
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Ways families pay
The six ways Minnesota families pay for care
Most families use more than one, and the mix changes over time. That’s normal, and it’s exactly what a free advisor can help you map out.
1. Private pay (income and savings)
The most common starting point: Social Security, pensions, retirement accounts, savings, and sometimes proceeds from selling a home. Many families private-pay first and shift to other sources as savings draw down. Planning that transition early, before the money runs out, is one of the most valuable things you can do.
2. Long-term care insurance
If your parent bought a long-term care policy, it may cover a meaningful share of assisted living, memory care, or in-home care. Policies vary widely, so check the monthly benefit, the elimination (waiting) period, and which care settings qualify.
3. Veterans benefits (Aid & Attendance)
Wartime veterans and their surviving spouses may qualify for the VA's Aid & Attendance pension, which adds money to a monthly VA pension to help pay for care. It is one of the most underused benefits, and many eligible Minnesota families never apply.
4. Medical Assistance & the Elderly Waiver
Medical Assistance is Minnesota's Medicaid program. For seniors who need nursing-home-level care but want to stay in the community, the Elderly Waiver helps pay for care services. It is the primary path for families with limited assets. It has specific income and asset limits, and an important catch: it pays for care services, not room and board.
Read the full guide5. Help with housing costs
Because the Elderly Waiver does not cover rent and meals, Minnesota has separate programs that can help lower-income seniors with the housing portion in participating settings. These include Housing Support (formerly Group Residential Housing) and Minnesota Supplemental Aid (MSA).
6. Other options
Life insurance conversion, reverse mortgages (to fund in-home care while a spouse stays home), short-term bridge loans while a home sells, and possible tax deductions for qualifying medical expenses. An advisor can help you weigh these carefully.
Important
The Medicare myth
Medicare does not pay for long-term assisted living, memory care, or custodial nursing home care. It’s the single most common misunderstanding families have. Medicare does cover short-term, medically necessary care, like a limited skilled-nursing stay after a hospitalization or some home health care, but not the ongoing room, board, and personal care that assisted living and memory care provide. That’s what the options above are for.
In-depth guides
Minnesota funding programs, explained
Quick guide
Which options apply to your family?
| If your parent… | Look first at… |
|---|---|
| Has significant savings or income | Private pay, and plan the transition early |
| Bought a long-term care policy | Long-term care insurance |
| Is a wartime veteran or surviving spouse | VA Aid & Attendance |
| Has limited assets and needs nursing-level care | Medical Assistance and the Elderly Waiver |
| Qualifies for the Elderly Waiver but can't afford rent | Housing Support or MSA |
| Was just hospitalized | Medicare (short-term rehab only), then plan longer-term |
Questions
Paying for care, answered
Does Medicare pay for assisted living in Minnesota?
No. Medicare does not cover long-term assisted living, memory care, or custodial care. It covers short-term skilled nursing after a qualifying hospital stay and some home health care, but not ongoing room, board, and personal care.
What's the difference between Medicare and Medicaid for senior care?
Medicare is federal health insurance for people 65 and older, and it covers short-term, medically necessary care. Medicaid, called Medical Assistance in Minnesota, is a needs-based program that can pay for long-term care, including through the Elderly Waiver, for those who meet income and asset limits.
Does Medicaid pay for assisted living in Minnesota?
Minnesota's Medical Assistance, through the Elderly Waiver, can pay for the care services in an assisted living setting, but not the room and board. Separate programs may help lower-income seniors with housing costs.
How do most families afford memory care?
Usually a combination: private savings and income first, often supplemented by long-term care insurance or VA benefits, and Medical Assistance or the Elderly Waiver once assets are spent down to program limits. Planning the transition early prevents a crisis later.
Is there free help figuring this out?
Yes. CasperCare's advisors help Minnesota families understand and combine these options at no cost. Your county or Tribal human services agency and the Senior LinkAge Line (1-800-333-2433) can also help.
Figuring out how to pay shouldn’t be this hard
A CasperCare advisor can help you understand your options and build a plan, completely free. No pressure, no sales pitch, just honest help.