How to Pay for Nursing Home Care With Social Security

Social Security can help cover a portion of nursing home costs, but it rarely pays the full bill on its own. Monthly benefits are typically used to offset room and board charges, while the remaining cost is paid through personal savings, long-term care insurance or Medicaid for those who qualify. Because nursing homes set their own pricing and payment policies, the role Social Security plays can vary widely. Understanding how these benefits fit alongside other funding sources can make long-term care more manageable for many retirees and their families.

A financial advisor can help you create a financial plan for your medical needs and goals.

Social Security vs. Supplemental Security Income

While they’re somewhat similar in name and both managed by the U.S. Social Security Administration, Social Security and Supplemental Security Income (SSI) are different programs. Social Security is an earnings-based program that’s paid for with Social Security taxes. It’s available to older adults, as well as disabled or blind individuals who’ve paid into Social Security through their jobs for a set period of time. Your work history and total earnings determine the benefits you receive.

Unlike Social Security, SSI is a needs-based program. This program is generally available to older adults with limited resources and a low income, and it may also be available to disabled or blind individuals of any age. It’s paid for by total tax revenue, not Social Security taxes. The benefits you can get through the SSI program are determined by federal and state regulations related to where you live and your income.

Can You Have Both Social Security and Supplemental Security Income?

If you meet certain eligibility requirements, it’s possible to get both Social Security payments and SSI. However, it’s unlikely the total of both payments will cover the full cost of nursing home care, even in states where the cost is relatively low compared to the median national cost.

The average Social Security payment in October 2025 was around $1,955 per month. For 2025, the maximum SSI payment for an eligible individual was $967 or $1,450 for an eligible couple. Maximum SSI payments will rise to $994 and $1,491 in 2026. ¹

With the national median cost of a private nursing home room at $10,646 per month, ² even the combined value of Social Security and SSI would leave a sizable gap.

How Medicaid Can Help

Those who qualify for SSI might also be able to apply for Medicaid to help pay for the cost of nursing home care. Medicaid is a program for qualifying low-income Americans or those with specific needs. It’s funded by federal and state funds, but administered by states.

For individuals who meet certain requirements, Medicaid could pay for the full cost of nursing home care. However, there are a few caveats. In 2026, your monthly income needs to be lower than $2,982 in most states, ³ and income is counted from the following sources:

• Earned wages
• Social Security payments
• Pension payments
• Savings or checking accounts
• Investment accounts
• Annuities
• Trusts
• Property
• Life insurance

The need for care is also determined by each state, and there are often waiting lists for long-term care facilities. Plus, if you do qualify for Medicaid nursing home care, you’ll be required to use most of your monthly income to cover the cost of the room and services.

Still, Medicaid could provide financial assistance for qualifying individuals in need of nursing home care and without alternatives. Your Medicaid coverage will provide a daily rate to help cover the cost of a shared room, nursing care, rehabilitation services, meals, medications, and personal hygiene items. But you’ll likely need to pay out of pocket for things like a private room, extra meals, comfort items, electronics, phone and internet access, and more.

To get access to Medicaid and its nursing home benefits, you’ll need to apply and meet the program’s eligibility criteria. However, the asset limit is quite low, so savings such as a retirement account, pension or emergency fund would generally need to be used before qualifying.

Bottom Line

While your Social Security check can help cover a portion of the cost of nursing home care, it won’t cover the entire cost. Combining Social Security and Supplemental Security Income also likely won’t be enough for the full cost of care. But those who qualify for Supplemental Security Income may qualify for Medicaid as well. Nursing home care may be covered by Medicaid in certain cases, but there are some important things to be aware of if you’ll be relying on this program for assistance.

Retirement Tips

• A financial advisor can help you create a financial plan for your nursing home costs. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Like other types of life insurance, long-term care insurance is typically more affordable the younger and healthier you are when you buy it. SmartAsset’s life insurance guide can help you estimate how much you’ll need and provide quotes.

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