With the median cost of a private room in a U.S. nursing home reaching $9,733, it’s no surprise that many seniors and their families want to maximize available resources to cover the cost of nursing home care.
Benefits provided by the Social Security Administration can be key to accessing senior care. We’re here to help you learn how to pay for nursing home care with Social Security.
What Are Social Security Benefits?
Programs offered by the Social Security Administration are an economic lifeline for retired individuals and people with disabilities. These programs include traditional Social Security benefits and Supplemental Security Income (SSI).
Individuals qualify for Social Security benefits based on their lifetime earnings. Employer and employee contributions fund these benefits through payroll taxes. The average Social Security check amount is $1,976 per month.
Can You Use Social Security Income To Pay for Nursing Home Care?
The income you receive from the Social Security Administration is typically used as a contribution toward the total nursing home care expenses. Care often exceeds the amount provided by Social Security, so additional financial resources are usually necessary.
When using Social Security for nursing home care, the process works as follows:
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Direct Contribution to Costs: Your Social Security check can be applied directly toward nursing home expenses, helping to reduce the out-of-pocket amount owed. For example, if your nursing home costs $9,733 per month and your Social Security benefit is $1,976, the benefit would lower the balance to $7,757, which must be covered by other means.
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For Medicaid Recipients: If you qualify for Medicaid, your Social Security benefits are typically allocated to the nursing home, with Medicaid covering the remaining balance. Medicaid often pays for essential services, including meals, personal care, medical supplies, rehabilitation, and shared or private accommodations, depending on eligibility and state-specific rules.
Is Social Security Enough for a Nursing Home?
Benefits received from the Social Security Administration can certainly help cover the cost of nursing home care. However, given the high price tag of living in such a facility, many seniors and their families will need to supplement Social Security with additional financial resources.
Here are some options to consider:
Medicaid
Medicaid is one of the most common ways to bridge the gap between Social Security benefits and nursing home costs. For eligible seniors, Medicaid can cover the remaining balance after Social Security income is applied. Medicaid also provides access to essential nursing home services, such as personal care, meals, and medical assistance.
Supplemental Security Income
For low-income seniors, Supplemental Security Income (SSI) can provide additional monthly payments to help cover nursing home care costs. Combined with standard Social Security benefits, SSI can ease some of the financial burdens. The maximum SSI benefit for an individual is $967 per month, while the maximum SSI benefit for a couple is $1,450 per month.
Long-Term Care Insurance
If purchased earlier in life, long-term care insurance can significantly offset the cost of nursing home care. Policies vary in coverage, but many will pay for room, board, and medical services in nursing homes, allowing Social Security benefits to cover smaller expenses.
Veterans' Benefits
Veterans and their spouses may qualify for financial assistance through programs such as the VA Aid and Attendance Benefit. This can provide additional funds for nursing home care, particularly for those who served during wartime.
Reverse Mortgages
For homeowners, a reverse mortgage can be an option to generate income to pay for long-term care. While not suitable for everyone, this option can provide significant financial relief for those who meet the eligibility requirements.
Can Your Social Security Check Be Garnished for Nursing Home Care?
Social Security checks are generally protected from most forms of garnishment under federal law, meaning creditors cannot typically seize these benefits to collect debts. However, there are some exceptions and specific scenarios where a portion of your Social Security benefits could be redirected:
Medicaid Recipients in Nursing Homes
If you are receiving Medicaid to cover nursing home care, most of your Social Security income will be allocated toward the cost of care. This process is not considered garnishment but rather an arrangement where your income is applied to nursing home expenses before Medicaid covers the remaining balance. You may retain a small portion, known as a "personal needs allowance," which varies by state but typically ranges from $30 to $100 per month.
Government Debts
Social Security benefits can be garnished to pay specific types of debts, including:
- Federal taxes or tax liens.
- Child support or alimony.
- Non-tax federal debts, such as student loans.
These garnishments can occur regardless of whether you reside in a nursing home.
Nursing Home Debts
If a nursing home is owed money and seeks payment, they cannot directly garnish your Social Security check. However, they could take legal action to obtain payment from other financial resources, such as savings accounts, or place liens on assets if applicable.
Consult with a financial advisor or elder law attorney to safeguard your Social Security benefits and ensure they are applied effectively. These professionals can provide guidance on Medicaid or Social Security eligibility, debt protection, and financial strategies to cover nursing home costs while preserving your income for essential needs.
Let Social Security Help Pay for Nursing Home Care
Figuring out how to pay for nursing home care with Social Security can feel overwhelming, but understanding your options can ease the process. While Social Security benefits may cover part of the cost, additional resources might be needed to fully meet your loved one’s needs. HUD Housing Network offers counseling agencies that can evaluate your situation and connect you with resources that can help.
