In the Austin market, a semi-private nursing home room runs roughly $6,500 a month in 2026, about $78,000 a year, and a private room roughly $8,500 a month, about $102,000 a year. These are 2026 ballparks. Verify them against the latest CareScout/Genworth Cost of Care survey and current Texas rate data before you plan around them.
Central Texas prices below many large metros, which families find reassuring for about a week. Then the arithmetic sinks in: even at the lower end, a year of skilled nursing care consumes most of a typical retirement account, and nobody plans for exactly one year.
Here is what the tiers cost across Travis, Williamson and Hays counties, who pays for what, and what happens when private funds run out.
In This Article
- The Ladder of Care and What Each Rung Costs
- Cost Differences Across the Austin Metro
- What Medicare Pays, and Where It Stops
- When Private Funds Run Out: STAR+PLUS
- Estate Recovery Is Part of the Cost Picture
- Sources Families Use to Cover the Monthly Gap
- Questions to Ask Before Choosing a Facility
- Request a Free Policy Review
- Frequently Asked Questions
The Ladder of Care and What Each Rung Costs
Skilled nursing is the most expensive tier because it includes round-the-clock licensed nursing coverage. Assisted living sits well below it and is built for people who need help with bathing, dressing, medications and meals but not medical supervision. Memory care usually prices above standard assisted living because of staffing ratios and secured units.
In-home aide services are billed hourly. For someone needing a few hours a day, that is by far the cheapest option; once continuous coverage is required, the hourly math crosses above facility cost. Verify every one of these locally for 2026, because the spread between providers within the same county is substantial.
Cost Differences Across the Austin Metro
Rates inside the core counties, Travis, Williamson and Hays, generally run above the outlying rural Hill Country areas. Within the metro, the Sun City Texas area in Georgetown along with Round Rock, Cedar Park and Westlake skew to the top of the range. High senior density, higher real estate values and a tight labor market all feed directly into daily rates.
Some families look further out for a lower rate. That can work, but distance makes frequent visits and hands-on oversight harder, and oversight is the thing most correlated with quality of daily experience. Weigh both sides honestly.
What Medicare Pays, and Where It Stops
Medicare covers a maximum of 100 days of skilled nursing per benefit period, and only after a qualifying inpatient hospital stay. Days 1 through 20 are typically covered in full. From day 21 a substantial daily coinsurance applies; verify the 2026 amount, since it adjusts each year.
Coverage also stops when the resident no longer requires daily skilled care, which frequently happens well before day 100. Medicare is rehabilitation coverage. It was never designed to fund long-term custodial care, and families discover this somewhere around the third week almost without exception.
When Private Funds Run Out: STAR+PLUS
Once savings are exhausted, long-term care Medicaid takes over. In Texas that is STAR+PLUS managed long-term services and supports, subject to a $2,000 countable-asset limit for a single applicant. Getting under that limit requires a spend-down, and spend-down is where old life insurance policies cause the most trouble.
In most states, life insurance is disregarded only when total face value across all policies is $1,500 or less; above that, the cash surrender value counts as a resource. A policy the family barely remembered can be the exact reason an application is denied.
| Payer | What it covers | Limits | When it applies |
|---|---|---|---|
| Medicare | Skilled nursing after a qualifying inpatient stay | Up to 100 days per benefit period; daily coinsurance from day 21 (verify 2026 amount) | Short-term rehabilitation only |
| Private pay | Everything | Limited by savings and income | The default until funds run out |
| Long-term care insurance | Per the policy terms | Daily benefit caps, elimination periods, benefit periods | Only if a policy was purchased years earlier |
| Texas Medicaid (STAR+PLUS) | Long-term services and supports | $2,000 countable-asset limit for a single applicant | After spend-down and approval |
| VA Aid and Attendance | Supplemental monthly benefit | Service, income and asset requirements apply | Qualifying veterans and surviving spouses |
| Life settlement proceeds | Lump sum from selling an unneeded policy | Typically $100k+ face value; 60-120 day process | Bridge funding while other sources are arranged |
Estate Recovery Is Part of the Cost Picture
Texas operates an aggressive Medicaid Estate Recovery Program. After a recipient dies, MERP can file a claim against the probate estate for what the state paid toward long-term care. That means the real cost of care to a family does not necessarily end at the date of death.
Exceptions and hardship waivers exist, and Texas homestead and probate rules interact with recovery in ways that need a professional read. Bring it up with a licensed Texas elder law attorney while planning, not afterward.
Sources Families Use to Cover the Monthly Gap
The gap between income and the bill gets filled from a short list: Social Security and pension income, retirement account withdrawals, home equity through a sale or line of credit, long-term care insurance where it exists, veterans benefits such as Aid and Attendance for those who qualify, and contributions from adult children.
One item is regularly missing from the list: an unneeded life insurance policy with $100,000 or more in death benefit. Three exits exist. Lapse yields nothing. Surrender yields the carrier’s cash surrender value. A life settlement, on a qualifying policy, typically yields more, commonly between 10% and 35% of face value, with GAO-10-775 finding sellers received roughly four to eight times cash surrender value.
Questions to Ask Before Choosing a Facility
Ask what the daily rate includes and what is billed on top: therapy, medications, supplies, transportation. Ask how much rates have risen in each of the past three years. Ask about staffing ratios on nights and weekends, not just weekday mornings.
Most importantly, ask whether the facility accepts Medicaid, and whether a resident who spends down can remain in the same room. A family that exhausts every private dollar at a facility that does not take Medicaid ends up moving a frail parent at the worst possible moment.
Request a Free Policy Review
If a parent owns a policy the family no longer needs, a free review tells you whether it has secondary-market value before anyone surrenders it. Send the policy cover page. No cost and no obligation.
Pine Lake Life Solutions reviews policies with $100,000 or more in death benefit. Call (305) 209-7183.
This page is educational only and is not legal, tax or investment advice. All cost figures are 2026 ballparks to be verified against the current CareScout/Genworth Cost of Care survey. Verify Medicaid rules with Texas Health and Human Services and consult a licensed Texas elder law attorney before acting.
Frequently Asked Questions
How accurate are these Austin figures?
They are 2026 ballparks intended to set expectations, not quotes. Daily rates vary widely among facilities within Travis, Williamson and Hays counties and change annually. Verify against the current CareScout/Genworth Cost of Care survey and confirm rates directly with any facility you are considering.
Why is Austin cheaper than many other metros?
Regional labor and real estate costs are the main drivers, and Central Texas prices below the coastal and Northeast markets. That said, the growth in the Austin metro has been pushing senior housing costs upward, so historical comparisons age quickly. Use current-year data.
Does Medicare cover long-term nursing home care?
No. It covers at most 100 days of skilled nursing per benefit period after a qualifying inpatient hospital stay, with substantial daily coinsurance starting on day 21, and it ends when daily skilled care is no longer needed. It is rehabilitation coverage. Long-term custodial care is paid privately or through Medicaid.
What does Texas Medicaid require financially?
Long-term care Medicaid in Texas runs through STAR+PLUS with a $2,000 countable-asset limit for a single applicant. Reaching that limit requires a documented spend-down, and the 60-month look-back applies to transfers made for less than fair market value. Confirm current figures with Texas Health and Human Services.
Is assisted living a realistic alternative?
It costs materially less than skilled nursing and works well for someone who needs help with daily activities but not medical supervision. It is not appropriate once round-the-clock nursing care is required. Many families use it as an intermediate step, which stretches private funds considerably.
Can a life insurance policy help pay for care?
For a policy the family no longer needs with $100,000 or more in death benefit, yes. A qualifying policy sold on the secondary market commonly brings between 10% and 35% of face value, typically more than surrendering it to the carrier. Whether a specific policy qualifies depends on the insured’s age, health and policy type.
How fast can a life settlement produce money?
Roughly 60 to 120 days from first contact to funding, driven by carrier processing and medical records retrieval. That will not cover next month’s invoice, but it works for families planning a few months out. The mistake is starting the conversation after the money is already gone.
What happens to the house after a parent dies on Medicaid?
Texas may pursue a claim against the probate estate through the Medicaid Estate Recovery Program to recover long-term care costs it paid. Exceptions and hardship waivers exist, and Texas homestead rules complicate the analysis. Discuss it with a Texas elder law attorney early rather than leaving it to the family to discover later.
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Related Reading
- Life Settlement Vs Surrender
- How It Works Policy Options
- Texas Medicaid Asset Income Limits
- Life Settlement Taxes Texas
- Sell Life Insurance Policy Austin
- Education Center
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.