Most families pay for residential care with a combination of sources: income, savings, and one or two benefits they did not know they qualified for. Here is what each one covers.
Private pay
Savings, income, investments, and the proceeds of selling a home. It gives you the widest choice of homes and the fastest move-in. Board and care in California typically costs $3,000 to $6,000 a month in 2026.
Long-term care insurance
If your parent has a policy, find it now. Most pay a daily or monthly benefit once the policyholder needs help with two or more daily activities, or has cognitive impairment, after an elimination period. Ask the insurer for the claim forms and whether the policy covers residential care homes.
VA Aid and Attendance
Veterans and surviving spouses who need help with daily activities may qualify for a pension with Aid and Attendance. Effective December 1, 2025, the maximum annual rates are:
| Who | Maximum annual rate |
|---|---|
| Veteran, no dependents | $29,093 |
| Veteran, one dependent | $34,488 |
| Surviving spouse, no dependents | $18,697 |
The net worth limit is $163,699. The cost of care counts as a medical expense, which can increase the benefit. Help filing should be free from a VA-accredited representative.
Medi-Cal
Two Medi-Cal programs, CalAIM Community Supports and the Assisted Living Waiver, can pay for care services in a licensed home for eligible members. They do not pay room and board. The 2026 asset limit is $130,000 for one person. Read the full Medi-Cal guide.
Medicare
Medicare does not pay for long-term residential care. It does pay for:
- A short skilled nursing facility stay for rehab after a qualifying hospital stay (at least three days as an admitted inpatient; observation days do not count).
- Hospice care, including hospice delivered inside a board and care home that holds a hospice waiver. The home's monthly rate is still owed.
- Home health visits for people who are homebound and need skilled care.
Home equity
Selling the family home is the most common way families fund care. A reverse mortgage is usually not a good fit once someone moves into care: a federally insured reverse mortgage generally becomes due when the borrower has not lived in the home for 12 consecutive months for medical reasons. Speak to a HUD-approved counselor before deciding.
Putting it together
A common combination: Social Security and a pension cover part of the monthly rate, VA Aid and Attendance or long-term care insurance covers more, and savings fill the gap. If savings will run out, plan early for Medi-Cal, and choose a home that accepts Medi-Cal program residents.
Not sure where to start? Run the free eligibility check, or call us at (747) 210-9358.
Sources
- U.S. Department of Veterans Affairs, Veterans Pension rates
- U.S. Department of Veterans Affairs, Survivors Pension rates
- California DHCS, Medi-Cal Eligibility Procedures Manual, Article 10J: Treatment of certain VA payments
- California DHCS, ACWDL 25-18: Medi-Cal asset limits from January 1, 2026, and the 30-month look-back
- California Health Care Foundation, Assisted Living Waiver and CalAIM Community Supports (2025)
- California DHCS, SSI/SSP payment standards effective January 1, 2026
- Medicare.gov, Hospice care coverage
- Medicare.gov, Skilled nursing facility care coverage
- U.S. Department of Housing and Urban Development, Home Equity Conversion Mortgages for Seniors