Can you use VA benefits for assisted living costs?

Navigating Veterans Affairs benefits can be both frustrating and confusing for recipients and their loved ones. These benefits, most commonly referred to as VA benefits, are extended to veterans and their families after honorable discharge from active military service. For many aging veterans and their families, one common question that arises is: Can you use VA benefits for assisted living or residential care costs? 

The answer is complicated, says Belize Hans Polloso, whose company Creloaded manages a Veterans Benefits Support Initiative to help families navigate the complicated process of using their VA benefits. The initiative began as a simple hub of information until Polloso’s team realized how confusing the process was for many recipients.

“Technically, the VA doesn’t directly pay for room and board in assisted living facilities like Medicaid might in a nursing home setting,” says Polloso. However, several programs can help absorb some of the cost.

How do VA benefits help pay for assisted living? 

While VA benefits do not directly cover assisted living, there are several key ways these benefits can ease the burden of the cost of residential care. In general, VA benefits help cover associated medical costs, but not assisted living room and board. According to Polloso, this works in a few ways.

Who qualifies for VA benefits for assisted living?

VA Disability Compensation. This program provides a monthly payment to veterans who have a disability related to their military service. This payment is tax-free, and there is no income limit or asset test. These funds can be used in any way a veteran or their family may need, so can be used to pay for a portion of the cost of assisted living.

VA Pension. This program is needs-based, and is given to wartime veterans under several conditions. Wartime veterans who served at least 90 days, with at least one day being during a period of war, are eligible for their VA pension once they reach the age of 65 or have a “permanent and total disability” that is not related to their military service. There is an income and asset test to receive a VA pension. Those guidelines can be found here. For those who do qualify for a pension, the monthly tax-free cash benefit can be applied towards the cost of assisted living. 

“Technically, the VA doesn’t directly pay for room and board in assisted living facilities like Medicaid might in a nursing home setting.”

— Belize Hans Polloso, VA Benefits expert and advisor

Aid and Attendance. This additional benefit works like a pension, and is also needs-based. Wartime veterans (or their surviving spouses) who need help with daily activities like bathing, dressing or toileting can apply for Aid and Assistance. This program can add several hundred dollars per month to a VA pension to ease the cost of assisted living. Veterans must first qualify for a VA pension to be eligible for Aid and Attendance.

All of these income streams can supplement some of the cost of assisted living. Polloso says these programs have some specific guidelines, so it’s important to read carefully — and contact the VA or a benefits specialist directly with specific questions.

There are additional sources of income, such as long-term care insurance, Medicare and Medicaid, that can pay for various portions of residential care.

Find income limits, information on asset tests and other information about VA pensions and disability compensation here.

Frequently asked questions about VA benefits for assisted living

Do VA benefits pay for any part of assisted living directly? 

While VA benefits do not cover room and board, there are some aspects of medical care that may be covered by these benefits. Those include mental health services as well as physical, occupational, and speech therapy. VA benefits may also cover medical equipment and end-of-life care.

Can Disability Compensation and a VA pension be used together? 

Polloso says the answer to this question is pretty clear. “Usually, no. You can’t receive full VA Pension and full Disability Compensation simultaneously.” The Veterans Administration will pay the greater of the two amounts, but not both simultaneously. 

There are a few exceptions. “A veteran might still receive partial benefits under some rare concurrent circumstances, though that’s uncommon and usually applies to very specific cases,” Polloso explains.

Can family members of veterans receive benefits for assisted living? 

There are some instances in which a veteran’s family members can use a portion of VA funds to cover residential care. Polloso says that spouses may qualify for Survivor’s Pension or Dependency and Indemnity Compensation (DIC) if the veteran’s death was service-connected. Pension funds can be applied towards assisted living.

Children under 18, or those under 23 if they are still students, qualify for survivor benefits, but it is uncommon for children to use survivor benefits to pay for residential care. Parents, spouses and children of deceased veterans can qualify for Dependency and Indemnity Compensation, though the requirements are specific. Few parents receive DIC for their veteran adult children.

How to find assisted living for veterans 

While each case is unique, there are a few basic steps Polloso says most families should follow when researching veterans’ assisted living options:

Determine Eligibility. This is where a Veterans Service Officer (VSO) or elder law attorney can be incredibly helpful in helping each family figure out what funds or services are available to them. 

Have the right documents. It’s important to come prepared with supporting medical evidence as well as the right government forms. For example, an Aid and Attendance application requires VA Form 21-2680 while a basic pension requires VA Form 21P-527EZ. 

Be Persistent. Once a benefits claim is initiated, the process can take up to six months. There is retroactive pay from the date of application approval, though. 

Choose a Facility. Polloso says that, thankfully, most assisted living facilities will accept veterans using Aid and Assistance or Disability Compensation, even though the VA doesn’t pay the facility directly. There are also veteran-specific retirement facilities. The VA outlines using benefits for assisted living here.

Expert tips to navigate assisted living VA benefits

One common complaint about using VA benefits is that they can be confusing, says Michaela Diallo Holts, a veteran of the National Guard. When Holts was a team lead for PAServes, she gained a deep understanding of just how overwhelming the VA benefits process can be for some families.

“The Veterans Administration is a big system, and the parts of the system don’t talk well to each other, so to speak… it’s important to learn how to connect with the particular department you are looking for.”

— Michaela Diallo Holts, National Guard veteran

PAServes, the Pennsylvania branch of AmericaServes, provides a wide variety of services for veterans and their families, including help with employment, medical benefits, housing and financial services. AmericaServes was created to help veterans and their families navigate a confusing VA system.

“It can be frustrating,” Holts says. “The Veterans Administration is a big system, and the parts of the system don’t talk well to each other, so to speak.” Holts offers the following tips to keep the process running smoothly: 

Keep careful records. While 1-800-827-1000 is the main number for Veterans Affairs, calling into a large phone system means callers often get a different employee each time. “Get the name of the caseworker you talk to each time, then you can follow up directly,” says Holts. 

Meet in person, when possible. While not every veteran or family member lives near a VA office, Holts says it’s often easier to sit down with a VA caseworker to discuss issues related to medical care and assisted living.

Be persistent. Even as a professional in VA benefits herself, Holts has had frustrating afternoons spent on hold with Veterans Affairs. Do not be afraid to continue to advocate for yourself or a loved one until you get a professional on the phone who can answer your questions about assisted living. 

“The VA is absolutely a helpful organization that has helped many veterans, myself included,” concludes Holts. “Since it is so large with many departments, it’s important to learn how to connect with the particular department you are looking for. Overall, the VA is a great resource for veterans and families.”