Allentown Senior AdvisorWhat happens when a personal care home resident runs out of money in Pennsylvania?
Because Medical Assistance and Community HealthChoices do not pay a personal care home's room and board, a resident who runs out of savings must either qualify for SSI with the state supplement in a home that accepts it, find another source of income, or move to a setting Medical Assistance pays for, usually a nursing home.
Some homes keep long-time residents at a reduced rate, but few promise it in writing. Ask the administrator now what the home's policy is.
What is the first thing to do when savings get low?
About a year before savings run out, list every income source and asset, ask the home about its spend-down policy, apply for any benefit your parent may qualify for, and get advice on Medical Assistance eligibility from the county assistance office or an elder law attorney.
Keep receipts for every care expense; they prove money was spent on care, not given away, when the look-back review comes.
Which benefits can help pay a personal care home?
VA pension with Aid and Attendance (up to $29,093 a year for a single veteran), SSI with Pennsylvania's $439.30 monthly personal care home supplement, long-term care insurance, and the Property Tax/Rent Rebate for those still paying property tax on a former home can all help.
Selling or renting a former home is the largest source of funds for many families; the proceeds count as assets once received.
When does a nursing home become the financial answer?
When a parent also needs nursing-level care and has spent down to about $2,000 in countable resources (plus any disregard), Medical Assistance pays for a nursing home that accepts it, with the resident contributing most of their income.
CMS certifies 30 nursing homes in Lehigh, Northampton and Carbon counties with 5,127 beds; of the 30 with an overall rating, 11 have five stars, 7 four, 7 three, 2 two and 3 one (Care Compare data as of October 1, 2026). Choose a home that accepts Medical Assistance before the switch, so your parent does not have to move again.
Are LIFE or Community HealthChoices an option instead?
Yes, for a parent who meets the nursing facility level of care and can live at home or with family: LIFE (in Lehigh and Northampton counties) and CHC home and community-based services can pay for daily care outside a nursing home, though not for personal care home room and board.
See LIFE vs CHC home care and the 2026 Medical Assistance limits.
At a glance
| Planning ahead means | Planning ahead does not mean | |
|---|---|---|
| Timing | Starting a year before savings run out | Waiting for a discharge notice |
| Benefits | Applying for VA, SSI and rebates early | Assuming Medicaid will take over the home's bill |
| Assets | Documenting care spending | Giving money to family to qualify |
Sources include 55 Pa. Code Chapters 20, 2600 and 2800, Pennsylvania DHS, Department of Health and Department of Aging pages, CMS, VA and CareScout rate tables as cited above; see our editorial standards.
