Many older adults and caregivers worry about how they will pay for elder care expenses in the future. Even families who have savings set aside often find elder care expenses are greater than they expected. Whether your loved one will live at home, an assisted living facility, or a nursing home, it is important to plan and learn more about different financing options.
Medicaid
Medicaid is a federal and state program for low-income families. With Medicaid, qualifying individuals can get coverage for medical care and long-term care. While estimates vary, it is safe to say that Medicaid pays between 45 and 65 percent of an individuals’ total nursing home costs. To qualify, people must meet specific requirements, including the means test program that will analyze their income and financial assets.
Medicaid generally covers the following:
- Medical, support, and prescription costs
- Long-term nursing home care
- Community-based alternatives to nursing homes
- Nursing services
- Personal assistance services
- Adaptive aids
- Medical supplies
- Assisted living
- Minor home modifications
- Respite care
Private Financing
At first, many older adults will try to pay for care with their own money. Many people have personal savings, pension, retirement funds, or income from stocks. However, many families use private payment options, including long-term care insurance or life insurance policies to pay for care.
Long-term care insurance covers many types of care benefits. The exact coverage will depend on the type of policy you buy and what services are covered. Some individuals only purchase nursing home coverage or a comprehensive policy because it includes home and facility care. Many people like private financing because it gives them the flexibility to adjust their coverages to their specific needs.
Are you worried about how you will pay for crucial healthcare expenses? Marsden Law P.C. can advise you about strategies to protect your assets. Call us today at (800) 828-7854!