Paying For Long Term Care
The cost of paying for long term care is a cause for concern for many senior citizens and their families. The average monthly cost of a nursing home stay in Michigan is about $8,500. At this rate, costs can be so high that they can consume most of a family’s monthly income, even if they have a reasonable amount of savings to allocated towards paying for long term care.
Often times, the kinds of services needed combined with the financial situation of the person who needs care will determine how they pay for long term care. The most common ways seniors and their families pay for long term care include personal savings, private financing options, or government assistance. In this article we will cover the different ways to pay for care including one of the most popular planning options that can help most people pay for expensive nursing home stays.
Paying For Long Term Care With Personal Finances
In the beginning, it’s very common for people to use their personal assets like a pension, retirement fund, savings, earnings from stocks and bonds, or the proceeds from the sale of a property like a home when paying for long term care.
Financial participation in adult day service programs, meals, and different community-based services running under the local government, union council, or nonprofit organizations can help older adults stay in their homes for as long as possible.
A lot of times, supplemental care begins at home with family and friends helping support their loved ones with day-to-day tasks. However, as an elder family member continues to age, it’s common that they become more dependent and require additional paid medical care that may be more intensive.
Sometimes the need for specialized care becomes so great that a family member may need the professional care of an assisted living facility or retirement care community. Although these care options can be quite expensive, some choose to privately finance their stay when paying for long term care. If you don’t have the financial resources to pay for a stay in a nursing home out of your own pocket, don’t worry, you’re not alone. We will discuss a popular option that can still help you later in this article.
Paying For Long Term Care With Insurance
One of the most popular ways to privately finance long term care is through long term care insurance. Long term care insurance offers a wide range of policies that vary with respect to covered services and price. You can choose between nursing home only coverage and a comprehensive home and facility care service.
As the number of insurance options continues to grow, it’s best to research policies and compare them. The type and amount of services covered, the buyer’s age, and added benefits contribute to the plan’s overall cost.
Keep in mind that costs for long term care insurance generally go up for people who are older, have health problems, or need additional benefits. For this reason, it is sometimes better to invest in long term care insurance when you are younger and healthier.
Medicare Program
Medicare is a program run by the federal government. It funds some of the medical expenses for people 65 years of age and older. It also helps pay medical bills for people who have received Social Security Disability Income for 24 months. It is NOT applicable for paying for long term care, assisted living, or personal care at home.
Medicare covers the following medical expenses:
Medicare Part A:
• A certain amount of hospital costs after you pay a deductible
• Short term nursing home stays that are related to a condition that you were hospitalized for
• Hospice care for the last six months of life before death
Medicare Part B:
• Part B covers part of the costs of doctors’ charges, outpatient care, and other services excluded from Part A
• Preventive services such as immunizations and screening for some diseases
Medicare Part D:
• Covers some of the costs for medications.
Department of Veterans Affairs
VA Aid & Attendance benefits are available options when paying for long term care for veterans or their widows. This benefit can help pay for the costs including in-home care, assisted living, and nursing home care. If your family member or relative is eligible for veterans’ benefits, check with the VA or get in touch with the VA medical center nearest you. You can also click here to visit the VA’s Aid and Attendance website.
If you need help with VA benefits planning, you can always contact an Estate Planning Attorney here at Rochester Law Center to help you structure your assets in a way that is permissible under the VA’s rules.
Social Security Disability Income (SSDI)
Social Security Disability Income (SSDI) is allocated for people who are below 65 and are considered disabled according to the Social Security Administration.
Certain conditions make a person eligible for Social Security Disability Income:
• The person can’t work
• The condition will last at least a year
• It’s expected that the condition will result in death
Under SSDI, people with Alzheimer’s, other dementias, and serious ailments can get benefits more quickly.
Paying For Long Term Care With Medicaid
Life expectancies and the cost of paying for long term care continue to rise, making it more and more difficult to pay for expensive nursing home services. In Michigan, the average stay in a nursing home is about $8,500 per month. As a result, many people are concerned with how they will be able to pay for quality care for themselves or an elderly parent.
For people who can’t pay for expenses out of pocket, don’t have long term care insurance, or are not qualified for SSDI or VA Benefits, Medicaid usually becomes the primary resource for paying for long term care.
But Medicaid rules are very complicated, and you must meet certain financial criteria in order qualify…
Luckily, a Medicaid Planning Attorney can help you legally structure your asset portfolio to qualify for Medicaid so that you can get the care you or an elderly loved one needs.
It’s never too late to begin Medicaid Planning, even if you or a loved one is already in a long term care facility. However, the sooner you begin planning, the more options will be available to you. This is why it’s often recommended that you begin Medicaid Planning well before entering nursing home care.
Whatever you do, do not apply for Medicaid without a plan to ensure you qualify. Applying too early can mean a longer wait for Medicaid qualification than necessary while applying too late can mean having to pay for months of care you may not have had to pay for…
If you would like help with Medicaid Planning to ensure that you or a loved one gets the proper care you need, please call us at (248) 613-0007 to book a free consultation with one of our experienced Medicaid Planning Attorneys at Rochester Law Center.
Conclusion
There are several options when paying for long term care. Privately paying for your stay out of pocket, buying long term care insurance, qualifying for SSDI, or utilizing veteran benefits are all options. However, if none of these apply to you, then Medicaid Planning is likely your best option when paying for long term care. Call us today at (248) 613-0007 to book a consultation with a Medicaid Planning Attorney to see if you qualify
Protect Your Home And Life Savings From Nursing Home Costs While Getting The Benefits
You Need To Pay For Care
