A recent report from the Government Accountability Office (GAO) found that Medicare and Medicaid funding accounted for almost $12 billion of services provided through assisted living facilities in 2024. The report examined spending for services in assisted living facilities and found $3.5 billion in federal Medicaid spending and $8.5 billion in traditional Medicare spending.

Assisted Living Services

The GAO report noted that the figure was likely an undercount because the Department of Housing and Urban Development and Veterans Affairs programs are also used to support those in assisted living facilities with room and board costs. As of March 2025, 44 state Medicaid programs covered assisted living services for older adults and people with disabilities.

Medicare does not generally cover assisted living facility costs like room and board charges. However, the federal program is used to cover costs associated with specific care. These services could potentially allow beneficiaries with a need for skilled care to remain in the assisted living facility instead of moving to an institutional setting that provides a higher level of care, such as a nursing home.

Federal Medicaid spending per patient averaged about $23,000, according to the report. About 21% of individuals receiving the benefits were 85 years old or older. More than 829,000 individuals were helped by the services provided through Medicare and Medicaid.

Other Federal Programs

The report also found that spending on hospice services took up the largest amount of assistance provided through the federal government, at more than $6.1 billion. Most commonly, hospice services include personal care, clinical social worker services, and skilled nursing services.

Original reporting: KTBS 3 (Shreveport) — read the source article.