When you and an aging adult in your life choose home care over moving to an assisted living facility or nursing home, the challenging question of how that care is going to be paid for arises. This article will examine six options you have when planning how you’re going to pay for home care.
If prescribed by a physician, Medicare will pay for a small amount of home care delivered by a Medicare Home Health Agency. The services you’ll receive are based on the specific medical condition and are usually only provided for a set period of time. Medicare will cover only a few personal care visits, and it doesn’t pay for companion care or supportive care services.
2. Private Pay (Out of Pocket)
The majority of families pay out of pocket for in-home care. Possible sources for private pay funds include:
- Individual Retirement Accounts (IRAs)
- Health Savings Accounts (HSAs)
- Real estate
- Social security benefits
- Personal savings
- Life insurance cash value
Many seniors hesitate to liquidate assets or use their hard-earned savings, but it’s necessary if you’re going to have Medicaid pay for home care. Unless your loved one has accumulated significant savings, it’s possible they may outlive their funds and will need to apply for Medicaid down the road.
3. Long-term Care Insurance
Long-term care insurance (LTCi) can pay for in-home assistance with “activities of daily living,” which include bathing, dressing, toileting, eating, and transferring from bed to chair or chair to chair. LTCi will also typically pay for things like meal preparation, medication reminders, light housekeeping, transportation, and more.
Long-term care insurance is only sold by a handful of insurance companies. It’s prudent that you work with an experienced agent who specializes in senior insurance services.
4. Private Health Insurance
Private health insurance offers very few benefits for in-home care. Some health insurance policies will cover some doctor-prescribed in-home care for acute health issues, usually following an in-hospital or skilled nursing facility stay. No health insurance policies or Medigap policies to supplement Medicare cover in-home long-term care.
Medicaid will cover short-term home care for acute conditions, typically after a hospital stay, skilled nursing facility stay, or physical rehabilitation. Medicaid will also only pay for home care provided by a Medicaid-certified home care agency.
Medicaid is a federal program, but it’s administered by each state, meaning payment for home care can vary from state to state.
6. Veterans Benefits
If your loved one served in the armed forces more than 90 days of active duty, with at least one day during a wartime period, and was honorably discharged, they may be eligible for benefits, including in-home care. Eligibility is calculated using a complex rating system based on how disabled your loved one is.
Let Help at Home Help
Help at Home has been helping families understand their options to pay for home care for over 20 years, and we’d love to help you. We serve the Chevy Chase, MD, Virginia, and Washington, DC metropolitan areas, and our mission is to provide the most compassionate senior home care possible.
Call us or visit us online today at www.helpathomecare.com. Our staff will unravel the payment mystery and get you started with the care that you need.