Medicare and Assisted Living in 2025: What’s Covered and What Isn’t

Veteran health organizations and senior care associations note that Medicare was designed to cover medical care, not long-term custodial care. This means assisted living costs usually fall outside its scope, but certain related services—like skilled nursing, physical therapy, or short-term home health care—may be covered.

Does Medicare Cover Assisted Living?

Medicare does not typically cover room, board, or personal care costs in assisted living facilities. Assisted living is considered “custodial care,” which includes help with daily activities like dressing, bathing, and eating. However, if medical treatment is needed during a stay, some of those services may be covered under Medicare Part A or Part B.

Understanding Assisted Living Costs and Medicare’s Role

The average cost of assisted living in the U.S. is over $4,000 per month. Medicare will not pay these costs directly. Instead, seniors often rely on a combination of personal savings, long-term care insurance, Medicaid (for those who qualify), or veterans’ benefits.

Medicare Home Assistance for Seniors Explained

Medicare Part A and Part B may cover home health care services for seniors recovering from illness or injury, provided care is deemed “medically necessary.” This can include:

Skilled nursing care (part-time)
Physical, speech, or occupational therapy
Medical social services

It’s important to note that Medicare will not cover round-the-clock in-home care or homemaker services like cooking and cleaning.

Does Medicare Pay for Physical Therapy in Assisted Living?

Yes, but with limits. If a senior in assisted living needs physical therapy as part of a doctor-prescribed treatment plan, Medicare Part B may cover it. Coverage depends on medical necessity, and services must be provided by a licensed therapist who accepts Medicare.

How Long Will Medicare Pay for Home Health Care?

Medicare covers home health care for as long as the patient meets eligibility requirements and the care remains medically necessary. For most seniors, coverage is reassessed every 60 days. This makes Medicare home health coverage temporary rather than a long-term solution.

Seniors relying mainly on Social Security often combine their income with other resources:

Medicaid waivers, which may help with certain assisted living costs.
Supplemental Security Income (SSI) in some states.
State or nonprofit programs designed to help low-income seniors with housing and care.

Conclusion

Medicare is an invaluable resource for seniors, but it was never intended to fully cover assisted living. In 2025, Medicare continues to cover medical needs such as physical therapy and skilled care, but not room, board, or custodial care. Seniors and families should explore Medicaid, veterans’ benefits, and long-term care planning to help cover the full costs of assisted living.