Knoxville Senior AdvisorWhat should we do when a parent's savings will run out in a year or two?
Ask the current community whether it accepts TennCare CHOICES members and at what room-and-board rate, have an elder law attorney review the finances, and start gathering the five years of records TennCare will request.
The goal is a planned transition, either staying put on CHOICES or moving to a community that accepts it, rather than a forced move when the account hits zero.
Will TennCare pay for assisted living when money runs out?
TennCare CHOICES can pay the care services in a participating ACLF for eligible Group 2 and 3 members, but not room and board, so the resident's own income must still cover the housing and meals portion.
With 2026 limits of $2,982 a month in income (or a Qualifying Income Trust above that) and $2,000 in resources, the room-and-board gap is often what decides whether assisted living stays affordable or a nursing home becomes the realistic option.
What if a parent in a Knoxville nursing home runs out of money?
Apply for TennCare CHOICES Group 1; if approved, TennCare pays the home, the resident keeps a $50 monthly personal needs allowance, and the rest of the resident's income goes toward the bill.
Confirm early that the home is certified for Medicaid and has long-term TennCare beds; Medicare-only homes cannot keep a TennCare resident.
Are there benefits families often miss?
VA Aid and Attendance for wartime veterans and surviving spouses, OPTIONS for Community Living for home help with no income limit, and Medicare Savings Programs and Extra Help with drug costs for low-income beneficiaries.
TN SHIP counselors (1-877-801-0044) can screen for Medicare cost help, and ETHRA's AAAD (1-866-836-6678) for CHOICES and OPTIONS.
Can family members contribute without hurting TennCare eligibility?
Family can pay a community directly for room and board or extras, but payments given to the resident may count as income; and the resident giving money to family inside the five-year look-back can delay eligibility.
Put any caregiver or support agreement in writing at fair rates, and get advice before anyone moves money.
Side by side
| Planning a year ahead lets you | Waiting until savings are gone means | |
|---|---|---|
| Community | Confirm CHOICES acceptance or move calmly | A forced move on short notice |
| Paperwork | Gather records without pressure | Delays while records are found |
| Spouse | Use spousal protections fully | Losing protected assets to the bill |
| Benefits | Add VA or OPTIONS help in time | Missing months of benefits |
Sources: Tenn. Comp. R. & Regs. chapters 0720-26, 0720-21 and 0720-18; Health Facilities Commission, TennCare and Department of Disability and Aging pages; CareScout and VA rate tables, as cited above. See our editorial standards.
