Private Pay

Paying "Out-of-Pocket"

Private pay is a term used to describe when someone pays for Services & Supports, housing, healthcare or activities with their own resources. It is also commonly known as paying “out-of-pocket.”

For most Services & 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 & 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 & 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.