One of the first questions families ask when exploring assisted living is: "How do we pay for this?" The costs can feel overwhelming at first — but most families are surprised to discover that there are more options than they initially realized.
This guide covers the most common ways families in Sacramento and throughout California pay for assisted living.
What Does Assisted Living Cost in California?
The cost of assisted living in California varies significantly depending on the type of facility, location, and level of care required. In the Sacramento area, monthly costs for residential care facilities (RCFEs) typically range from $3,500 to $7,000+ per month.
Smaller, residential-style facilities like The Oaks at Garfield often offer more personalized care at costs comparable to or lower than large corporate communities — and with a noticeably warmer experience.
1. Private Pay (Personal Savings)
The most common funding source is private pay — using retirement savings, Social Security income, pension benefits, investment accounts, or proceeds from selling a home. Many families use a combination of sources.
If your loved one owns their home, selling or renting it can provide significant funds. A financial advisor or eldercare attorney can help you structure this transition efficiently.
2. Long-Term Care Insurance
Long-term care (LTC) insurance policies are specifically designed to cover the costs of assisted living, memory care, and nursing home care. If your loved one purchased a policy before cognitive or physical decline, it may cover a significant portion of monthly care costs.
To use LTC insurance, you'll need to file a claim, meet the policy's "benefit triggers" (usually needing help with 2+ ADLs or having a cognitive impairment), and work with the facility to submit documentation. The care facility will typically assist with this process.
3. Veterans Benefits (Aid & Attendance)
Veterans and surviving spouses of veterans may qualify for the VA's Aid & Attendance benefit — a pension supplement specifically designed to help pay for long-term care, including assisted living.
Eligibility requirements include:
- Veteran served at least 90 days of active duty with at least one day during a wartime period
- Veteran received an honorable or general discharge
- Applicant has limited income and assets (limits vary)
- Applicant requires assistance with daily living activities
The Aid & Attendance benefit can provide up to $2,300/month for a veteran and spouse. A VA-accredited attorney or benefits counselor can help you navigate the application process.
4. Medi-Cal (California Medicaid)
Medi-Cal is California's Medicaid program for low-income individuals. While Medi-Cal does cover some long-term care costs, coverage for assisted living in RCFEs is limited compared to skilled nursing facilities.
The CBAS (Community-Based Adult Services) program and IHSS (In-Home Supportive Services) are Medi-Cal programs that can help offset some costs for qualifying individuals. Coverage availability varies by county and income level.
It's worth speaking with a Medi-Cal planner or eldercare attorney to understand what your loved one may qualify for.
5. Bridge Loans and Senior Living Loans
If your loved one owns a home but hasn't sold it yet, a bridge loan can provide short-term financing to cover care costs while the home is being sold or rented. Several lenders specialize in senior living bridge loans.
6. Life Insurance Conversion
Some life insurance policies can be converted or sold to help pay for long-term care. Options include life settlements (selling the policy to a third party for a lump sum), accelerated death benefits (if the policy allows early payouts for chronic illness), or premium financing arrangements.
Getting Help
Navigating the financial side of senior care can be complex. We recommend consulting with a Certified Senior Advisor (CSA), eldercare attorney, or financial planner who specializes in long-term care planning.
At The Oaks at Garfield, we're happy to discuss pricing openly and help families understand their options. We work with families at various financial starting points and can often refer you to resources in the Sacramento area.
Call Us to Discuss Pricing & Options