A new U.S. Government Accountability Office (GAO) report highlights the growing role assisted living communities play in serving older adults and individuals with disabilities, finding that federal Medicaid and Medicare spending on services delivered in assisted living settings totaled at least $12 billion in 2024. The report notes that assisted living provides an important residential alternative to nursing homes and institutional care, while allowing residents to receive supportive services in a more home-like environment.
GAO found that 44 states currently use Medicaid to cover assisted living services through a variety of home- and community-based care programs, although the agency cautioned that federal spending is likely undercounted because assisted living is not consistently identified across federal data systems. The findings underscore the increasing importance of assisted living within the broader long-term care continuum as policymakers address the needs of America’s rapidly aging population.