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There are a variety of resources and options available to help cover the cost of long-term home care. We’ve listed the most common ways our members can pay for their home care. Each state has different rules and regulations so always discuss your payment options with your in-home care provider.
This is also called “private pay.” Some individuals and their families have saved enough to be able to be able to pay for their own home healthcare.
In some cases, If the patient qualifies for Medicaid benefits, the state has a program called “Medicaid Estate Recovery” so that the state can recover long term care costs from the real estate of the recipient who received this Medicaid assistance. The state will attach a lien against the property and, upon death of all who live in the home, recover the state’s expenditures for long term care. Medicaid will not pay for costs of living in Assisted Living Facilities or Personal Care Homes.
Medicare is the federal health insurance program for persons ages 65 and older, certain disabled persons.
Home health care and hospice are reimbursable by Medicare and require a physician’s order for “skilled” home care. Services are provided by a registered or licensed nurse. These services are considered short term and limited but can be used with Medicare paying the bill.
Long Term Care (LTC) insurance has been sold for many years and is included in many employee benefits programs. LTC insurance pays for care that is generally not covered by health insurances and Medicare. Individuals who require assistance performing basic activities of daily living (ADLs) such as dressing, bathing, eating, toileting, incontinence, ambulating or getting out of bed all qualify for benefits.
The Veterans Administration provides a program where all veterans who served in the military during an active war can receive financial assistance for personal care. The Aid and Attendance Program allows veterans and surviving spouses who require a regular attendant for eating, bathing, dressing and other ADLs, to receive monetary benefits for their care.
This program can take up to a year for approval but will pay retroactively from the beginning of service.
Typically, people have life insurance to protect themselves and family members against sudden loss of income after the death of a breadwinner. Most seniors are years past employment, so loss of income may not be a primary factor. However, life insurance policies contain riders that sometimes allow benefits to be paid for chronic illness care. Policies even allow accelerated death benefit payments for long term care. These riders are very useful for current elderly needs as well as planning for future Long Term Care costs.
Many seniors pay for care using a reverse mortgage loan – a federally issued loan that allows you to convert some of the equity in your home into tax-free cash. It’s best to discuss this option with your mortgage or financial advisor.
Health insurance policies for the elderly generally do not pay for long term care. These policies typically wrap around the Medicare benefit and do not add any new benefits. However, there are exceptions. You may need to look at your individual policy to determine if home care aides are covered and for how long. These benefits are limited to the health condition of the recipient, considered short term in nature and as recipient’s health condition improves, will be terminated.
If your loved one has minimal resources to pay for home care, your first call should be to the local Area Agency on Aging (AAA). AAA has a wide array of services and funding available to seniors. These services include meals, transportation, personal care, protective services, and nursing home transitions, all of which have some funding from federal, state or local governments. These benefits will be explained by AAA after you communicate the needs and personal financial resources of your loved one.