Paying For Nursing Home When Money Runs Out
With people living longer than in previous generations, there are concerns that seniors will not be able to afford long-term care. According to a survey by the National Council on Aging (NCOA), a growing number of elderly Americans are worried that they will outlive their savings. They cite that the increasing cost of healthcare makes them fear that they won’t be able to meet their healthcare expenses in the next five to ten years.
In Michigan, the average cost of long-term care is 133,000 per year. As you can see, this warrants concern because paying for long-term care out of pocket on a limited income can drain a family’s financial resources rather quickly.
This situation raises the question of what happens when an elderly adult in a nursing home facility can no longer pay for the services. Essentially, how do you pay for a nursing home when money runs out?
In a lot of cases, the nursing home will dismiss or evict the non-paying resident. Moving an elderly family member out of a nursing home, especially if they need specialized care, can be very traumatizing for the patient.
Ways To Pay For A Nursing Home When Money Runs Out
If a family was paying for nursing home costs for an elderly loved one out of pocket, they may run out of money for a variety of reasons: unplanned or additional medical bills, longer than expected stays in a nursing home facility, increased need for assistance, or a denial of government benefits. When circumstances change, the family may be forced to look for other ways to pay for a nursing home when money runs out.
Can Long-Term Care Insurance Be Used To Pay For A Nursing Home?
Families who find themselves in this difficult situation often ask if long-term care insurance is an option to pay for a nursing home when money runs out. While long-term care insurance can be a used to pay for a nursing home, it needs to be pre-planned for well in advance of needing long-term care.
Should You Sell The Family Home To Pay For A Nursing Home?
Some elderly individuals who need to pay for a nursing home when money runs out will sell their home to finance their medical care and save money on homeownership costs.
However, this is not ideal.
The largest and most valuable asset most people own is their home. As a result, they want to hold on to their house in order to preserve their wealth and pass the value of their home to their children after they pass away. Selling the home to pay for a nursing home when money runs out obviously reduces the amount of inheritance an elderly person can pass to their kids.
Another issue that can make it more complicated to sell the house to pay for a nursing home when money runs out is when one spouse is living in the nursing home while the second spouse is still living in the family home. If the family home needs to be sold to pay for care, the spouse living in the home may have to move in with a family member. This can be emotionally taxing and a difficult adjustment for all parties involved. Selling the home to pay for a nursing home when money runs out is not ideal.
Fortunately, there may be some alternatives that can help you.
Does Medicare Pay For A Nursing Home?
Medicare is the primary health insurance for Americans 65 years of age and older. A common source of confusion with Medicare is whether or not it pays for long-term care.
Why and what happens when medicare stops paying for nursing home care?
Because Medicare does pay for SOME skilled nursing care, but only for 100 days if the stay in the skilled nursing facility is an extension of a previous hospitalization that Medicare paid for.
But what if mom or dad needs to be in a nursing home for longer than 100 days and funds are running short?
Medicare does not pay for a nursing home when money runs out.
Fortunately, there is an alternative that can help you get the financial assistance you need to get your loved one the care they need without losing everything in the process.
Can Medicaid Pay For A Nursing Home?
Unlike Medicare, which only covers a part of a qualified individual’s nursing home costs for up to 100 days, Medicaid is a joint federal and state benefit that can pay for a nursing home when money runs out. Medicaid is actually the largest payer for long-term care for seniors and, in most cases, will pay for the full cost of nursing home care, even if the applicant requires it for the rest of their life.
Using Medicaid To Pay For A Nursing Home When Money Runs Out
Typically, Medicaid will pay for a person’s nursing home care expenses, but the beneficiary must be at a Medicaid approved facility. While how much a nursing home charges depends on several factors, including its geographical location and the complexity and quality of care, Medicaid pays for all applicable expenses. That is a relief for most families because the average monthly cost of long-term care facilities in Michigan is between $8,000-$9,000. However, an applicant must qualify for benefits based on Medicaid’s restrictive means-based criteria.
Medicaid Eligibility and Nursing Home Care
To qualify for Medicaid in Michigan, your income and assets need to be under about $2,000 in countable assets. This includes cash, savings, investments, or other financial resources that can be turned into cash. Assets that aren’t counted include your home, personal possessions, household goods, one vehicle, prepaid funeral plans, and some life insurance.
If you don’t currently qualify based on these criteria, don’t worry…
Medicaid Crisis Planning Can Help You Pay For A Nursing Home When Money Runs Out
A Medicaid Crisis occurs when your loved one has experienced an injury or illness, like a stroke, that will require the need for long-term care in the immediate future, but they do not have the money to pay for the expensive costs of a skilled nursing facility.
Or, your loved one is already in a nursing home and has run out of private funds to pay for care and is at risk of having to leave their skilled nursing facility.
In these cases, the individual has an immediate need to do Medicaid Crisis Planning to develop a Medicaid eligibility plan so they don’t lose everything.
Typically, in these situations, your loved one may not be eligible for Medicaid without the help of a Medicaid Planning Attorney who can legally structure their income and assets in a way that makes them eligible for Medicaid.
While it’s best to create a Medicaid Plan as early as possible, it’s important to understand that a Medicaid Crisis Planning Attorney can help you qualify quickly in a time of crisis.
If you are currently experiencing a Medicaid Crisis, give us a call now at (248) 613-0007 to book a consultation with an experienced Medicaid Planning Attorney.
When you call, tell the receptionist that you need help with Medicaid Crisis Planning so that we can get you the earliest appointment available.
Why Use An Elder Law Medicaid Planning Attorney In A Time Of Crisis?
Time is of the essence when you need to pay for a nursing home when money runs out. An Elder Law Medicaid Planning Attorney can help you in the following ways:
Get Benefits Quickly During A Financial Medicaid Crisis
- An Emergency Medicaid Crisis occurs if your family member is in a nursing home, or will need to be soon, but doesn’t have the financial resources to pay for care. A Medicaid Attorney can help you structure your assets and quickly apply for benefits so you can get the care you need – ASAP.
Apply And Qualify For Benefits Fast, Or Appeal If You've Been Denied
- Time is critical so you don’t lose money. Also, eligibility for Medicaid is extremely complicated. Even the smallest mistake can lead to a denial that can take months or years to fix. A Medicaid Attorney is a trained professional who can make sure the application process is followed correctly in accordance with the law so you get approved for benefits quickly.
- Working with a Medicaid Planning Attorney speeds up the application and review process and reduces stress because you know a professional is leading the way.
- If you applied for benefits before and were denied, all is not lost. A Medicaid Lawyer can help you with a Medicaid appeal so you can get the benefits you need to pay for your loved one’s care.
Qualify For Benefits By Legally Structuring Your Income And Assets According To Medicaid’s Rules
- You may not be eligible for Medicaid without the help of a Medicaid Planning Attorney who can legally structure your income and assets in a way that makes you eligible for Medicaid benefits.
- A Medicaid Planning Attorney can help you ensure that Medicaid or the nursing home won’t take your family’s house just to pay for your care. This helps preserve your assets so your family can inherit them.
Make Sure The Healthy Spouse Has Money To Survive
- Situations where only one spouse is applying for long-term care can be VERY complicated to plan for. A Medicaid Planning Attorney can help maximize the amount of assets the non-Medicaid applicant spouse is able to hold on to and the monthly income that can be transferred from the applicant spouse to the non-applicant spouse so they can survive and pay the bills.
Preserve Wealth And Plan For Incapacity
- A Medicaid Planning Attorney can help you create Estate Planning documents to protect your assets and preserve your wealth so that you can pass your legacy on to your children.
- A Medicaid Planning Attorney helps you plan for incapacity with documents like Financial Power of Attorney, Medical Power of Attorney, and Living Will so that designated family members can manage the finances and care of their loved one receiving long-term care.
Frequently Asked Questions
How Can I Pay for Assisted Living with No Money?
If you have limited or no financial resources, you can explore several options to pay for assisted living:
Medicaid: This state and federally funded program may cover assisted living costs for low-income individuals.
Veterans Benefits: If you or your spouse served in the military, you may be eligible for financial assistance through VA benefits.
Nonprofit Programs: Some nonprofit organizations offer financial aid to seniors in need of assisted living. It’s essential to contact local resources and financial advisors to explore the best options for your situation.
What Happens When Medicare Stops Paying for Nursing Home Care?
When Medicare coverage for nursing home care runs out, you will need to explore other payment options:
Medicaid: If you qualify, Medicaid can help cover long-term care costs once Medicare ceases to pay.
Private Pay: This involves using personal savings or income to cover the costs.
Long-Term Care Insurance: If you have a long-term care policy, it may help with expenses not covered by Medicare. Without these options, discussing payment plans with the facility is a crucial next step.
Private Duty Nursing for the Wealthy
Wealthy individuals seeking private duty nursing can hire professional caregivers for personalized in-home care. This service offers:
Tailored Care: Customized medical or personal care for a specific duration or condition.
Round-the-Clock Service: 24/7 care for those who require constant supervision.
High-Level Comfort: Private nurses ensure a high standard of living and healthcare in the comfort of your home. Typically, these services are paid out of pocket or through private insurance.
Who Pays for a Nursing Home if You Have No Money?
If you have no money to pay for a nursing home, the following options may help:
Medicaid: This is the most common option for low-income individuals needing nursing home care.
Social Security Benefits: These benefits may be applied toward nursing home costs.
Family Contributions: In some cases, family members may help cover the costs. Medicaid will only cover nursing home care for those who meet certain financial and medical eligibility requirements.
What Is the Fastest Way to Get Into a Nursing Home?
To quickly secure a spot in a nursing home, follow these steps:
Apply for Medicaid: If eligible, Medicaid can speed up the process by providing immediate financial aid for nursing home care.
Private Pay: If you have the resources, paying privately can expedite the admission process.
Contact Local Facilities: Reach out to nursing homes directly to check for availability and ensure all paperwork is ready for a quick transition. In emergencies, hospital discharge planners can assist with faster placement in a facility.
How to Pay for a Nursing Home with No Money?
If you have no money, Medicaid is often the primary option for covering nursing home costs. Other potential solutions include:
Veterans Benefits: Veterans and their spouses may qualify for financial assistance.
Reverse Mortgages: Seniors who own their homes may use a reverse mortgage to cover nursing home expenses.
State Programs: Some states offer additional aid for low-income seniors needing long-term care. Exploring these options early can help prevent financial strain.
What to Do When Medicare Runs Out for Rehab?
When Medicare coverage for rehab ends, you have several options to continue care:
Medicaid: If you qualify, Medicaid may help cover the cost of ongoing rehabilitation.
Private Insurance: Some health insurance plans offer extended coverage for rehabilitation services.
Out-of-Pocket Payment: You may need to pay for the remaining rehab costs yourself. It’s crucial to discuss your options with the facility’s billing department and plan accordingly.
How do I find out when Medicare stops covering nursing home care?
Contact the nursing home’s billing department or check Medicare’s “Summary of Benefits” to find the exact date.
Can a nursing home discharge a patient when Medicare stops paying?
Yes, a nursing home can discharge a patient when Medicare stops paying, but proper notice must be given.
Who pays for nursing home care if you have no money?
If you have no money, Medicaid is the primary payer for nursing home care, provided you meet the eligibility criteria.
Protect Your Home And Life Savings From Nursing Home Costs While Getting The Benefits
You Need To Pay For Care
Book A Free Consultation With A Medicaid Attorney Today
Determine Your Medicaid Eligibility Risk Free
Get Help Qualifying For Medicaid Long Term Care Benefits
Call Us Now (248) 613-0007
Because every Medicaid Planning situation is different, we offer a free initial consultation with a Medicaid Planning Attorney to help you determine if Medicaid Planning is right for you.
The initial consultation gives you the opportunity to help you understand your current Medicaid eligibility. It also gives us a better understanding of how we can help you plan to protect your home and life savings from nursing home costs while getting you the benefits you need to pay for care.
To book your free consultation, call us now at (248) 613-0007 and tell our friendly receptionist that you would like to book a consultation for Medicaid Planning. She will book you for the time that works best for your schedule.
We look forward to hearing from you!
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