Hudson Valley Senior AdvisorWhat happens when a parent's money runs out in assisted living?
A private-pay resident whose savings run out can stay only if the residence accepts SSI or has an Assisted Living Program bed and the resident qualifies; otherwise the residence can discharge for nonpayment with written notice.
The 2026 Q2 capacity report shows 9 of the 18 licensed residences in Dutchess and Orange holding Assisted Living Program beds, 931 of the 1,664 certified beds: Hedgewood Assisted Living (192), Promenade at Middletown (131), The Eliot at Erie Station ALP (120), The Sentinel of Port Jervis (109), Dutchess Care (92), Braemar Living at Wallkill (88), The Avalon Assisted Living and Wellness Center (75), Hyde Park Assisted Living Facility, Inc. (66), Promenade at Tuxedo Place (58). That is better news than in many regions, but ALP beds still have waiting lists. Ask every residence, before move-in and in writing, what happens when savings end.
When should we apply for Medicaid?
Start about six months before savings are expected to run out, because applications take time, the county will ask for up to 60 months of records for nursing home care, and an ALP bed or MLTC plan may have its own wait.
Gather bank statements, deeds, insurance policies and income records now. An elder law attorney can help with spousal protections and with gifts made in the look-back period.
What protections exist for a spouse?
In 2026 a spouse at home can keep resources between $74,820 and $162,660 and a monthly income allowance of up to $4,066.50 when the other spouse receives nursing home Medicaid.
| 2026 New York spousal figure | Amount |
|---|---|
| Community spouse resource allowance, state minimum | $74,820 |
| Community spouse resource allowance, federal maximum | $162,660 |
| Minimum monthly maintenance needs allowance | $4,066.50 |
| Personal needs allowance in a nursing home | $50 |
Source: NYSDOH GIS 26 MA/03, 2026 Medicaid Levels and Other Updates (January 23, 2026).
Are there other sources of money to check?
Check VA Aid and Attendance for wartime veterans and surviving spouses, long-term care insurance, life insurance with a cash value or conversion option, a reverse mortgage if one spouse stays home, and SSI's Congregate Care Level 3 rate of $1,688 a month for residents of adult homes and enriched housing.
The county Office for the Aging can screen for benefits at no cost.
At a glance
| Plan ahead by | Avoid | |
|---|---|---|
| Residence | Asking about SSI and ALP in writing | Assuming a residence must keep a Medicaid resident |
| Medicaid | Applying about six months early | Gifting assets without advice |
| ALP | Joining waiting lists early | Waiting for a crisis |
| Spouse | Using spousal allowances | Spending down the spouse's share |
Rules and dollar amounts on this page come from New York law and regulation (the Social Services Law, Public Health Law, 18 NYCRR and 10 NYCRR), Department of Health GIS messages and directories, CMS, the VA, CareScout or the county agencies named in the text. Our sourcing rules: editorial standards.
