Medicaid for Adult Foster Care in Oregon

Finding care for someone you love is hard enough. Here is a plain-English guide to how Medicaid helps pay for it, and we are happy to walk you through it.

Or call us: 503-930-2557

Costs · Eligibility · Apply · Get help

The numbers at a glance

Amounts for one person, as of July 1, 2026. They change each year.

$773 a month

Room and board. The resident pays this to the home.

$221 a month

Spending money. The resident keeps this.

$2,982 a month

Income limit. A special trust can help if income is higher.

$2,000

Savings limit for one person.

5 years

Look-back. Gifts in this window can delay approval.

855-673-2372

Free help to get started. Aging and Disability Resource Connection.

The good news

The good news: Medicaid can pay for the care your loved one needs in an Oregon adult foster home. You do not need to be wealthy, and you do not need to have everything figured out before you call.

Medicaid pays for care. The state pays the home a monthly rate based on the help a person needs.
Your loved one pays room and board ($773 a month) from their own income, and keeps $221 a month for personal spending.
To qualify, Oregon must find that the person meets its care requirements, and they must be within the income limit ($2,982 a month for one person) and the countable asset limit ($2,000).
Apply early, before savings run out. Gifts made in the last five years can delay approval.

Living Waters Care accepts Medicaid at all of our homes, so running out of private funds is not, by itself, a reason for a resident to be asked to leave once Medicaid is in place.

What Medicaid pays and what the resident pays

Think of it as two parts. Medicaid pays the home for care. Your loved one pays for room and board from their own monthly income, usually Social Security, a pension, or both.

The state sets the care rate by tier, from Tier 1 (the lowest level of need) to Tier 5 (the highest). As of July 1, 2026, the rates run from $2,332 to $7,773 a month. The home accepts that rate plus room and board as payment in full.

Your loved one’s monthly income goes to	Amount
Room and board, paid to the home	$773
Personal spending money, kept by the resident	$221
Anything left over, applied to the cost of care	The remainder

A simplified, made-up example (individual deductions can change the numbers): a resident with $994 in monthly income keeps $221 and pays $773 for room and board. Nothing is left over, and Medicaid pays the full care rate. A resident with $1,800 keeps $221, pays $773, and puts the remaining $806 toward care. Medicaid pays the rest.

A spouse or dependent child, health insurance premiums and some medical bills can lower the amount left over. Medicaid sends a notice showing exactly what is owed each month.

Who qualifies

There are three things the state looks at.

1. Care needs. Oregon requires an assessment to confirm the person meets its care requirements. A caseworker meets with your loved one to see how much help they need with daily activities like bathing, dressing, eating, using the toilet and moving around. Memory and behavior count too.

2. Income. For one person, the limit is $2,982 a month (as of July 1, 2026). If income is higher, a special income cap trust, sometimes called a Miller trust, may still make it work. That is a legal document, so get help setting it up.

3. Countable assets. A single person can keep up to $2,000 in countable assets, which covers more than bank accounts. Some things do not count, so ask the caseworker what applies to you.

Over the limit? You still have options. Paying for care and ordinary expenses brings savings down. Talk to an elder law attorney before moving any money.

Gifts and the five-year look-back

When you apply, the state looks back five years at your loved one’s finances. If money or property was given away or sold for less than it was worth, approval can be delayed. As of July 1, 2026, each $14,585 given away equals about one month of waiting. The waiting period generally starts once the person has applied and would otherwise qualify, so it can leave a gap in payment for care.

Please do not give money or property away to “qualify” without advice first.
Keep bank statements for the last five years. The caseworker will ask for them.
Paying for care, medical needs and ordinary bills is not a gift.
Already made a gift? Talk to an elder law attorney. Some transfers are allowed, and some can be fixed.

If your loved one is married

The spouse who stays home is protected. As of July 1, 2026, Oregon protects part of the couple’s resources and income for that spouse. The protected resource amount ranges from $32,532 to $162,660, and the monthly income allowance has a minimum of $2,705 and a maximum of $4,066.50. What is actually protected depends on your circumstances. Some of the resident’s income can also go to the spouse if their own income is low. The rules are detailed, so bring both spouses’ statements to your first meeting.

How to apply, step by step

Call for help first. The Aging and Disability Resource Connection (ADRC) at 855-673-2372 can explain your options and point you to the right office. It is free.
Apply for Medicaid long-term care. Apply online at one.oregon.gov, by phone at 800-699-9075 (Monday to Friday, 7 a.m. to 6 p.m.), or in person at a local office.
Get assessed. A caseworker will meet with your loved one to review care needs. Be honest about the hard days, not just the good ones.
Send in your paperwork. The caseworker will ask for proof of income and savings.
Choose a home that takes Medicaid. We do, and we can help with questions along the way.
Wait for the decision. You will get a notice showing whether the person was approved and what they owe the home each month. Keep copies. If something looks wrong, the notice explains how to appeal.

What to gather: photo ID and insurance cards, proof of all income, bank and investment statements for the last five years, life insurance and burial plan information, any legal papers such as a power of attorney, and records of any large gifts. If a family member is helping, make sure they have legal authority to speak for the person.

Do not wait until the money is gone. Apply when savings are getting close to the limit, and ask when coverage can start.

Choosing a home that takes Medicaid

Not every adult foster home accepts Medicaid, so ask before you tour. Living Waters Care does, at all of our homes. Good questions for any home:

Do you have a Medicaid contract?
If my loved one starts as private pay and later runs out of money, can they stay?
What is the monthly room and board, and what does it include?
Are there any extra charges? What does the residency agreement say?

A home cannot charge a Medicaid resident for the care the rules require, or anything beyond room and board and the amount shown on the Medicaid notice. It can charge for optional extras, such as a hairdresser or cable TV, if they are disclosed in the residency agreement before move-in.

Once a Medicaid-contract home accepts a resident who has run out of private funds, running out of money is not, by itself, a reason to ask the resident to leave. Other reasons allowed under Oregon licensing rules still apply, and if a move ever becomes necessary, we will do all we can to help the resident and family with the transition.

After approval

Report changes. Tell the caseworker about changes in income, savings, health or where the person lives. Health insurance premiums, co-pays and some medical expenses may lower what you owe the home. Report them promptly with proof, and ask the eligibility worker which deductions apply.

Estate recovery. After a Medicaid member dies, Oregon may seek repayment from their estate for long-term care benefits paid since age 55. Nothing is claimed while a spouse is alive, or if the member has a living child who is under 21, or who is blind or permanently and totally disabled. People who receive money or property from the estate can ask for a hardship waiver, and the deadlines are firm. Whether a house is affected depends on the situation, so ask the Estate Administration Unit at 800-826-5675 or an elder law attorney before you decide anything.

Free help and who to call

Who	What they help with	Contact
Aging and Disability Resource Connection (ADRC)	Finding care options and the right office	855-673-2372, adrcoforegon.org
Oregon benefits line	Applying for or updating Medicaid	800-699-9075, benefits.oregon.gov
Estate Administration Unit	Estate recovery questions and hardship waivers	800-826-5675
SHIBA	Free Medicare counseling	shiba.oregon.gov
Oregon State Bar Elder Law Section	Finding an elder law attorney	elderlaw.osbar.org

Questions? Talk with us

Comparing options? See how adult foster care compares with assisted living. Living Waters Care runs licensed adult foster homes in South Salem and West Salem, and we accept Medicaid at all of them. If you are trying to sort this out for someone you love, call us at 503-930-2557. We are glad to answer your questions, even if we turn out not to be the right fit.

This guide is general information, not legal or financial advice. Figures have different effective dates. Last reviewed October 30, 2026. Confirm them with the state before you rely on them.

Sources

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Figures are as of July 1, 2026 unless noted.