How to Pay for Assisted Living: Medicaid, VA Benefits, and More (Katy, TX 2025 Guide)

July 29, 2025 410 Views

Volume 1: Introduction & Table of Contents

Introduction

Paying for assisted living can feel overwhelming for many families, especially when trying to find the best community for a loved one while managing costs. In Texas, and particularly in Katy, families often face a maze of options, programs, and payment strategies. Understanding Medicaid eligibility, VA Aid and Attendance benefits, long-term care insurance, and private payment options is essential to making the best decision for your loved one.

This comprehensive guide will show you exactly how to pay for assisted living in Katy, TX. We will break down the most common payment options, including how to determine if you or your loved one qualify for Medicaid or VA benefits, ways to use personal assets without exhausting savings, and how Evergreen Cottages can help you maximize every available resource.

This 5-volume series will equip you with step-by-step guidance and actionable information to help you move forward with confidence.

Volume 1: Introduction & Table of Contents
- Why understanding your payment options is essential
- Overview of what we will cover in this guide
Volume 2: Paying for Assisted Living with Medicaid in Texas
- Who qualifies for Texas Medicaid and STAR+PLUS Waiver programs
- How Medicaid covers assisted living
- Common mistakes that cause families to be denied
Volume 3: VA Aid and Attendance and Other Veterans Benefits
- Who is eligible for Aid and Attendance
- How to apply and what documentation is required
- Combining VA benefits with other payment sources
Volume 4: Other Ways to Pay for Assisted Living (Private Pay, Insurance, and Assets)
- Using personal savings, pensions, and retirement accounts
- Long-term care insurance: what it does and does not cover
- Leveraging home equity or life insurance
Volume 5: Putting It All Together & Frequently Asked Questions
- How to combine multiple funding sources
- Tips to avoid out-of-pocket strain
- FAQ: the most common questions about paying for assisted living in Katy, TX

Why Payment Planning Matters for Families in Katy, TX

Assisted living costs vary by location, level of care, and amenities. In the Katy, TX area, families can expect to pay between $4,000 and $6,000 per month for quality assisted living. This does not include additional services like memory care or specialized nursing, which may increase costs. Without a clear plan, families can deplete savings quickly.

Evergreen Cottages has seen firsthand how families can stretch resources when they understand all their options. Some residents qualify for Medicaid or VA Aid and Attendance, while others strategically use a mix of private funds, long-term care insurance, and home equity to secure the best possible care without jeopardizing their financial future.

What You Will Gain from This Guide

A step-by-step explanation of Medicaid and VA benefits for Texas families.
Practical tips on how to qualify and avoid common application mistakes.
A clear understanding of how private payment, insurance, and asset-based strategies can work together.
Answers to the most frequently asked questions about paying for assisted living in Katy, TX.

By the end of this series, you will have a clear roadmap for funding assisted living for your loved one, whether you are considering Evergreen Cottages or another senior living community in Texas.

Next step: We will dive into Volume 2: Paying for Assisted Living with Medicaid in Texas.

Volume 2: Paying for Assisted Living with Medicaid in Texas

Understanding Medicaid and Assisted Living in Texas

For families in Katy, TX, Medicaid can be one of the most valuable resources for covering the cost of assisted living. However, Medicaid coverage is complex, and many families struggle to determine eligibility or navigate the application process. This volume will break down exactly how Medicaid works for assisted living in Texas and how it can help your loved one move into a community like Evergreen Cottages.

Who Qualifies for Medicaid for Assisted Living in Texas?

Medicaid is a needs-based program, which means eligibility is determined by income and assets. In Texas, there are two key factors:

Financial Eligibility:
- Monthly income limits (as of 2025) are typically around $2,742 for individuals and $5,484 for couples. Income includes Social Security, pensions, retirement accounts, and other sources.
- Asset limits are $2,000 for individuals and $3,000 for couples. Certain assets, such as a primary residence, car, and personal belongings, may be exempt.
Medical Eligibility:
- The individual must require a nursing-home level of care, meaning they need help with activities of daily living such as bathing, dressing, eating, mobility, or medication management.
- A doctor’s evaluation is required to confirm this level of care.

The STAR+PLUS Waiver Program

In Texas, standard Medicaid does not pay for room and board in assisted living facilities. Instead, Medicaid offers the STAR+PLUS Home and Community-Based Services Waiver (HCBS) to help cover the cost of assisted living for eligible individuals.

Key points about STAR+PLUS Waiver:

Provides services that allow seniors to live in assisted living rather than a nursing home.
Covers care services, including help with daily living, medication management, and personal assistance.
Does not always cover full room and board, but can significantly reduce out-of-pocket costs.
Has a limited number of slots available each year, so early application is crucial.

How to Apply for Medicaid for Assisted Living

Gather Financial Documentation:
- Bank statements, retirement account details, Social Security award letters, life insurance policies, and proof of income.
Complete the Medicaid Application:
- Applications are handled by the Texas Health and Human Services Commission (HHSC). You can apply online, by mail, or in person.
Request STAR+PLUS Waiver:
- Ensure you specifically request the STAR+PLUS HCBS Waiver as part of the application. Without this step, you may only be approved for nursing home Medicaid.
Schedule a Medical Assessment:
- A nurse or caseworker from HHSC will evaluate your loved one to determine if they meet the medical criteria for assisted living coverage.

Common Mistakes Families Make When Applying

Waiting too long to apply: Slots for STAR+PLUS Waiver are limited. If your loved one is on a waiting list, you may be responsible for full private-pay costs until a slot opens.
Transferring assets improperly: Giving away money or property to meet asset limits can cause long periods of ineligibility.
Failing to include all necessary documentation: Missing financial records or medical information can delay or result in denial.
Assuming Medicaid will cover everything: Medicaid may not pay for the entire cost of assisted living, especially room and board.

Tips to Improve Your Chances of Approval

Apply Early: Even if your loved one is not ready to move immediately, start the application process.
Seek Professional Guidance: An elder law attorney or Medicaid planning specialist can help protect assets and ensure the application is correct.
Work with the Assisted Living Community: Communities like Evergreen Cottages often assist families with the Medicaid process and can help identify which costs may be covered.
Stay Organized: Keep all correspondence, application copies, and assessment records in one place to avoid losing key documents.

Why Medicaid Planning Matters

The average cost of assisted living in Katy, TX can range from $4,000 to $6,000 per month, and memory care costs can be even higher. Medicaid can drastically reduce this burden, but only for families who qualify and plan ahead.

By understanding income and asset rules, requesting the STAR+PLUS Waiver, and avoiding costly mistakes, you can ensure your loved one gets the care they need without depleting family resources.

Next Step: In Volume 3, we will explain VA Aid and Attendance and Other Veterans Benefits, another valuable way to pay for assisted living in Katy, TX.

Volume 3: VA Aid and Attendance and Other Veterans Benefits

Why Veterans Benefits Are a Critical Resource

Many seniors and their families are unaware that the U.S. Department of Veterans Affairs (VA) offers programs to help pay for assisted living. For qualifying veterans and their surviving spouses in Katy, TX, the VA Aid and Attendance benefit can significantly reduce out-of-pocket costs. This is especially helpful for families who do not qualify for Medicaid but still struggle to cover assisted living expenses.

What Is VA Aid and Attendance?

The Aid and Attendance (A&A) benefit is a monthly payment provided by the VA in addition to a veteran’s existing pension. It is specifically designed for veterans or surviving spouses who require assistance with daily activities or are housebound.

Key points:

It is not a loan and does not need to be repaid.
It can be used toward assisted living, memory care, or in-home care.
It is available to both veterans and their surviving spouses.

Who Qualifies for VA Aid and Attendance?

Eligibility is based on four criteria:

Service Requirements:
- Veteran must have served at least 90 days of active duty, including at least one day during a period of wartime (World War II, Korean War, Vietnam War, Gulf War, etc.).
- An honorable or general discharge is required.
Medical Need:
- Applicant must require help with activities of daily living (ADLs) such as bathing, dressing, mobility, eating, or medication management.
- A doctor’s statement is required to document these needs.
Financial Eligibility:
- The applicant’s income and net worth must fall below VA limits.
- As of 2025, the net worth limit (including assets and annual income) is $155,356. The applicant’s primary residence, car, and personal belongings are excluded from this calculation.
Status:
- Applies to veterans, surviving spouses, or dependent children who meet these criteria.

How Much Does VA Aid and Attendance Pay?

The 2025 maximum monthly benefit amounts are approximately:

Veteran with no dependents: $2,727 per month
Veteran with one dependent: $3,106 per month
Surviving spouse: $1,478 per month
Two married veterans: $4,648 per month

These payments can be used directly to help cover the monthly costs of assisted living in Katy, TX.

How to Apply for VA Aid and Attendance

Gather Documentation:
- Discharge/separation papers (DD-214), marriage certificate (if applicable), medical records, and financial statements.
Complete the VA Form 21-2680:
- This is the official application form for Aid and Attendance. It requires a physician’s signature and detailed medical information.
Submit Your Application:
- Applications can be mailed to the VA Pension Management Center, filed online, or submitted through an accredited representative.
Follow Up:
- VA applications can take 6–9 months to process. Stay in contact with the VA or a local veteran service officer to avoid unnecessary delays.

Other Veterans Benefits That May Help

VA Pension: For veterans with limited income who are over age 65 or permanently disabled.
Housebound Benefits: Similar to Aid and Attendance, but for veterans who are primarily confined to their home.
State Veterans Programs: Texas Veterans Land Board (VLB) offers additional programs for senior veterans, including long-term care assistance.

Combining VA Benefits with Other Payment Sources

Many families in Katy, TX combine VA Aid and Attendance with private pay, long-term care insurance, or Medicaid (if eligible). Aid and Attendance does not affect Medicaid eligibility, but the monthly benefit is counted as income, which may adjust your Medicaid co-pay.

Communities like Evergreen Cottages can help you create a payment strategy that maximizes all available funding sources.

Why Apply Even If You’re Unsure

The Aid and Attendance benefit can be life-changing for families. Even if you are not sure your loved one qualifies, it is worth applying. Many families mistakenly assume their income or assets are too high, only to discover they qualify after working with an accredited VA representative.

Next Step: In Volume 4, we will discuss other ways to pay for assisted living in Katy, TX, including private pay, long-term care insurance, and how to leverage home equity or life insurance.

Volume 4: Other Ways to Pay for Assisted Living (Private Pay, Insurance, and Assets)

Why Families Need Multiple Funding Sources

While Medicaid and VA Aid and Attendance can help significantly, not all families in Katy, TX qualify. Many rely on private pay, long-term care insurance, and asset-based strategies to fund assisted living. The key is to create a plan that stretches resources and prevents financial strain.

Private Pay: Using Personal Savings and Income

Private pay is the most common way families cover assisted living costs. This includes:

Social Security income and pensions – These monthly payments often cover a portion of the cost.
Retirement accounts (401k, IRA) – Withdrawals can be used for assisted living, though taxes and penalties may apply depending on age and account type.
Personal savings or investments – Cash reserves, stocks, and bonds can be liquidated when needed.

Key tip: Create a clear monthly budget to ensure funds last as long as possible. Communities like Evergreen Cottages can help you calculate your monthly costs accurately.

Long-Term Care Insurance

Long-term care insurance (LTCI) is specifically designed to cover assisted living, nursing home care, or in-home care.

Policies vary, but most will pay a daily or monthly benefit amount once the insured person meets eligibility criteria (usually needing help with at least two activities of daily living).
Some policies have elimination periods (waiting periods) before benefits begin.
Not all seniors have LTCI because it must be purchased before significant health issues arise, but it is a powerful resource for those who do.

Action step: Contact your insurance provider to understand exactly what your policy covers and how to start a claim.

Using Home Equity

For homeowners in Katy, TX, a house can be one of the largest untapped resources. Options include:

Selling the home: Proceeds can be used directly for assisted living expenses.
Reverse mortgage: Allows seniors to access equity while still living in the home. This is most useful if a spouse will remain in the home.
Renting the home: Provides monthly income that can be applied toward assisted living costs.

Important: Consult a financial advisor before making any decisions about the family home, especially if Medicaid eligibility is a future consideration.

Life Insurance

Some life insurance policies can be used to pay for assisted living:

Life settlement: Selling a policy to a third party for more than the cash surrender value.
Accelerated death benefit: Some policies allow policyholders to access a portion of their death benefit if diagnosed with a terminal or chronic illness.

This can be a viable way to generate funds without selling other assets.

Bridge Loans and Short-Term Solutions

If a family is waiting for Medicaid approval, VA benefits, or the sale of a home, bridge loans can provide immediate funds. These short-term loans are designed to be repaid once a permanent funding source is in place.

Combining Multiple Payment Options

Most families use a combination of these resources:

Social Security and pensions may cover part of the cost.
LTCI or VA Aid and Attendance fills another portion.
Home equity or savings covers any remaining balance.

Working with a senior living advisor or financial planner can help you structure payments in a way that minimizes risk and ensures long-term stability.

Why Evergreen Cottages Can Help

Evergreen Cottages assists families every day in understanding their funding options. Our team can guide you through cost planning, connect you with financial professionals, and provide realistic cost projections so you can make informed decisions.

Next Step: In Volume 5, we will bring it all together, show you how to combine funding sources effectively, and answer the most frequently asked questions (FAQ) about paying for assisted living in Katy, TX.

Volume 5: Putting It All Together & Frequently Asked Questions

Combining Multiple Funding Sources for Assisted Living

For most families in Katy, TX, paying for assisted living requires more than one funding source. This final volume will show you how to layer Medicaid, VA benefits, private pay, insurance, and asset-based strategies in a way that minimizes out-of-pocket stress.

Step 1: Evaluate Your Total Monthly Cost

Assisted living in Katy, TX costs an average of $4,000 to $6,000 per month, depending on care level and amenities.
If your loved one needs memory care, anticipate costs on the higher end.
Ask for a written breakdown of what is included and what may be extra.

Step 2: Identify Guaranteed Income

Social Security and pensions often form the base.
Determine exact monthly amounts you can expect.
Apply this income first when estimating how much additional funding is needed.

Step 3: Layer in Benefits and Insurance

If your loved one qualifies for Medicaid, apply early to avoid waitlists. Medicaid may cover care services and reduce the amount you need to pay privately.
If your loved one is a veteran or surviving spouse, apply for VA Aid and Attendance. These monthly benefits can cover a significant portion of costs and are not taxable.
If you have long-term care insurance, understand the benefit period, daily limits, and how soon benefits start.

Step 4: Use Assets Strategically

Home equity, life insurance, and retirement accounts should be tapped carefully.
Consider bridge loans or renting out a home if waiting for benefit approval or a home sale.
Speak with a financial advisor to avoid jeopardizing future Medicaid eligibility with asset transfers.

Step 5: Revisit Your Plan Annually

Costs, health needs, and available benefits can change over time.
Reassess your payment strategy every 6–12 months to ensure you are using all available resources efficiently.

How Evergreen Cottages Supports Families

Our team at Evergreen Cottages works closely with families to create sustainable cost plans. We can connect you with elder law attorneys, VA-accredited agents, and financial professionals to help you maximize every funding source. We also provide clear cost breakdowns so you know exactly what you are paying for.

Frequently Asked Questions (FAQ)

1. Does Medicaid pay for room and board in Texas assisted living communities?

No. Medicaid does not cover room and board directly. However, the STAR+PLUS Waiver program can cover care costs, which significantly reduces total monthly expenses.

2. Can I use VA Aid and Attendance and Medicaid at the same time?

Yes. However, Aid and Attendance is counted as income for Medicaid purposes, which may adjust your monthly co-pay.

3. How long does it take to get Medicaid approval in Texas?

Approval can take several weeks to months. Applying early and submitting complete documentation will help prevent delays.

4. What happens if my loved one’s funds run out?

If your loved one is in an assisted living community like Evergreen Cottages and they run out of private funds, they may be eligible for Medicaid to cover ongoing care. Planning early is critical to avoid disruption.

5. How do I know if my loved one qualifies for VA Aid and Attendance?

They must have served during wartime, require help with daily living activities, and meet financial limits. An accredited VA agent can help confirm eligibility.

6. Does long-term care insurance cover 100% of assisted living costs?

Not usually. Most policies have daily or monthly benefit limits, so you may still have to cover part of the cost.

7. Can I transfer assets to my children to qualify for Medicaid?

No. Medicaid has a 5-year lookback period. Any improper transfers may result in ineligibility for a set period.

8. What is the average monthly cost of assisted living in Katy, TX?

On average, assisted living costs $4,000 to $6,000 per month. Memory care is typically higher.

9. Are there tax benefits for paying for assisted living?

Yes. Certain medical expenses associated with assisted living can be tax deductible. Consult a tax advisor for details.

10. Can Evergreen Cottages help me with the application process for Medicaid or VA benefits?

Yes. We assist families every step of the way by providing documentation and connecting you with professionals who specialize in benefit applications.

Final Takeaway

Paying for assisted living in Katy, TX does not have to drain your family’s savings. By combining Medicaid, VA Aid and Attendance, private pay, insurance, and assets, you can create a stable and sustainable plan.

At Evergreen Cottages, we understand that finances are a major concern when choosing the right community. Our team is here to guide you through the options so you can focus on what truly matters: ensuring your loved one receives the highest level of care in a safe and compassionate environment.

Want a free cost planning consultation?
Contact Evergreen Cottages today to discuss payment strategies, tour our community, and learn how we can help you maximize benefits and stretch resources effectively.