Private Pay

Private pay is a term used to describe when someone pays for services and supports, housing, healthcare or activities with their own resources. It is also commonly known as paying "out-of-pocket."

For most services and supports that allow or require private pay, personal funds may be used to cover all or a portion of the expense. Individuals may use private pay in addition to insurance or financial assistance programs to cover some of the cost.

Types of services and supports that can be used for Private Pay

Private pay resources can include: personal income and savings, support from family and friends, long-term care insurance, and reverse mortgages.

  • Reverse Mortgages: This unique type of home equity loan allows homeowners to tap their home equity for cash, which is usually paid to the homeowner monthly.
  • Long-Term Care Insurance: Insurance that helps pay for long-term services and supports not covered by health insurance, Medicare, or Medicaid.
  • Personal Income and Savings: All income from wages and salaries, pensions, Social Security, annuities, investment income (e.g. dividends and capital gains), business ownership and other sources, as well as savings accounts and any investments.
  • Support from Family or Friends: Financial assistance from family or friends can help cover some costs.