Rochester Senior AdvisorWhat happens when a parent's savings run out in assisted living?
Ordinary assisted living in New York is private pay, so when savings run out a resident must move to a lower-cost setting, an Assisted Living Program bed if one is available and they qualify, a nursing home under Medicaid, or home with Medicaid home care.
That is why the time to plan is a year or more before the money ends. Ask the residence now whether it holds ALP beds and what it does when a private resident's funds run low.
How early should we apply for Medicaid?
Start about three to six months before savings reach New York's 2026 resource limit of $33,038 for a single person, because the application, especially for nursing home care, requires five years of financial records and can take weeks to process.
The county Department of Social Services decides eligibility. In Monroe County, NY Connects at (585) 325-2800 can help with the application.
Can we give money to children to qualify for Medicaid?
Gifts made within New York's 60-month look-back for nursing home Medicaid create a penalty period, calculated in the Rochester region at $15,675 a month for 2026, so giving money away without a plan usually backfires.
Some transfers are allowed, such as to a spouse or a disabled child, and elder law attorneys use specific planning tools. Get advice before moving money.
What protections exist for a spouse at home?
In 2026 New York lets the community spouse keep resources equal to the greater of $74,820 or half the couple's countable resources up to $162,660, plus income up to $4,066.50 a month, and the home usually stays exempt while the spouse lives there.
Those amounts can make Medicaid a realistic option for a married couple even with meaningful savings.
Are there other benefits we may have missed?
Check VA pension with Aid and Attendance for wartime veterans and surviving spouses, the Medicare Savings Programs and EPIC for drug costs, SNAP and HEAP for utilities, and any long-term care or life insurance policies that may have benefits.
HIICAP counselors in each county screen for Medicare-related savings at no cost.
Who can review our options before the money runs out?
An elder law attorney, a HIICAP counselor for Medicare-related savings, NY Connects for program screening, and the residence's own business office can each review part of the picture.
Bring a list of assets, income and monthly costs to the first meeting.
At a glance
| Do this early | Avoid this | |
|---|---|---|
| Medicaid | Gather five years of records | Applying the week savings run out |
| Transfers | Get advice on allowed transfers | Gifting money inside the look-back |
| Housing | Ask about ALP beds before admission | Assuming a residence will keep a resident on Medicaid |
Sources include the N.Y. Social Services Law and Public Health Law, 18 NYCRR Parts 487-494, 10 NYCRR Parts 415 and 1001, Department of Health GIS messages, CMS, the VA and CareScout, as cited above; see our editorial standards.
