Last verified: October 2026
What should you do when assisted living savings will run out within a year?
Start the ALTCS application process at least several months before funds run out, ask the facility now whether it contracts with ALTCS health plans, and check VA pension eligibility if your parent or a late spouse served in wartime.
Will your parent have to move?
Only if the facility does not contract with your parent's ALTCS plan or will not accept the plan's room-and-board amount; Arizona's rules allow 14 days' written notice for nonpayment, so get any conversion promise in writing early.
How do you protect a spouse who lives at home?
ALTCS community spouse rules let a spouse at home keep a share of resources and receive part of the applicant's income; request AHCCCS's Community Spouse Information Sheet or see an elder law attorney.
Share of cost and spouse rules →
Can the VA pension help bridge the gap?
If your parent qualifies, the 2026 Aid and Attendance pension can add up to $29,093 a year for a veteran alone, reduced by countable income after medical expenses; it often bridges the months before ALTCS.
Is there a cheaper setting if a move is needed?
Small assisted living homes that contract with ALTCS often cost less than large centers, and a home licensed for all three service levels avoids another move later.
Should you tell the facility that money is running out?
Yes, early. A facility that knows months ahead can explain its ALTCS contracts, suggest a smaller room, or plan a transfer calmly; one that learns at the first missed payment may send a 14-day notice.
Put any arrangement it offers in writing.
Can a house be rented or sold to pay for care?
Yes. Many families rent out or sell a parent's house to pay for assisted living, but each choice affects ALTCS and VA eligibility differently, so get advice before listing the property.
Rental income counts as income; sale proceeds count as a resource until spent on care or other allowable costs.
When savings run low: options and limits
| Option | Limit | |
|---|---|---|
| ALTCS | pays care services | member pays room and board in assisted living |
| VA pension | monthly payment toward care | wartime service and net worth limit |
| Facility conversion | stay in place | only if the facility contracts with the plan |
