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What ALTCS pays for in assisted living, and what it does not

The single most misunderstood rule in Arizona senior care, in plain language.

Quick answer

ALTCS pays for the care services a member receives in an approved assisted living facility, but it does not pay room and board; AHCCCS policy says room and board is not a covered service in assisted living and is the member's responsibility.

Home›Costs & ALTCS›What ALTCS pays for in assisted living, and what it does not

Last verified: October 2026

Does ALTCS pay for assisted living in Arizona?

ALTCS pays for the care services a member receives in an approved assisted living facility, but it does not pay room and board; AHCCCS policy says room and board is not a covered service in assisted living and is the member's responsibility.

The room-and-board amount is set by the member's ALTCS health plan, and someone else, such as a family member, may pay it on the member's behalf.

Sources: AHCCCS Medical Policy Manual 1230-A.

Who decides how much room and board an ALTCS member pays?

The member's ALTCS contractor, the health plan, determines the room-and-board amount for the facility under its contract, and the member pays it to the facility from income, usually Social Security and any pension.

In practice the member's income covers room and board first, the share of cost covers part of the care, and ALTCS pays the rest of the care. Ask each facility what room-and-board amount it accepts from ALTCS members before you choose.

Does every Tucson assisted living facility accept ALTCS?

No. A facility must contract with an ALTCS health plan to be paid for ALTCS services, and many private-pay communities do not, while many small homes do; AZ Care Check does not show which facilities hold ALTCS contracts.

Ask the facility directly which ALTCS plans it contracts with, and ask the plan's case manager for its list. Some communities accept residents who convert to ALTCS after a period of private pay; get that promise in writing.

What happens if a private-pay resident runs out of money?

If the resident qualifies for ALTCS and the facility contracts with the resident's plan, the resident can often stay and switch to ALTCS; if not, the facility may give written notice to end residency for nonpayment, which Arizona's rules allow with 14 days' notice.

Start the ALTCS application several months before savings run out, because eligibility takes time and the facility needs to know a payment source is coming. What to do when savings run low →

How is a nursing home different under ALTCS?

In a nursing home, ALTCS pays the full facility rate including room and board, and the member contributes a share of cost from income after allowances; that is why some families find ALTCS covers a nursing home more fully than assisted living.

The trade-off is the setting. Assisted living vs. nursing home →

ALTCS in assisted living: covered and not covered

Covered by ALTCSNot covered by ALTCS
Care services in the facilityyes, for eligible members
Room and boardno, the member pays
Facility choicefacilities contracted with the member's planany facility of your choosing

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