Choosing home care is a big decision for seniors and their families. Nothing is more important than receiving the highest quality. But – it can be costly. According to Genworth’s Cost of Care Survey, the national average cost of a homemaker service is $4,957 per month. A home health aide costs around $5,148 per month!
Planning ahead for the possibility of long-term care can make things go a little smoother. Of course, sometimes we forget to plan until we are faced with major life or health changes. Regardless of the circumstances, you have several possibilities that can help pay if and when it’s time for home care.
Medicare
Medicare generally does not pay for long-term care. However, it will pay for medically necessary care received at home. Physical therapy, skilled nursing, and occupational therapy are all examples of care that Medicare will cover. Anything custodial or not directly related to health like homemaking or meal services will not be covered.
Medicaid
Medicaid is a joint federal and state program that helps low-income individuals pay for care. It can help with the cost of both custodial and medical care. It’s just important to note that every state has different requirements for qualification. You can visit Medicaid.gov for more specific directions on determining eligibility in your state.
Reverse Mortgage
Homeowners over the age of 62, who have considerable equity, can borrow against the value of their home. Simply put: the lender pays money to the homeowner instead of the other way around. You don’t need immaculate credit to qualify and don’t have to make monthly payments, so it’s a pretty great option for some quick cash.
Related: Calculating How Much You Can Borrow With a Reverse Mortgage
Veteran Benefits
The VA will cover the cost of many services under standard health benefits. Visit va.gov to see the full list of long-term care services available and to apply for assistance. Veterans may be eligible for services such as Home Based Primary Care.
Visit va.gov’s Geriatrics and Extended Care page for more information.
Long-term Care Insurance
Traditional health insurance rarely pays for costs associated with long-term care. Help with daily activities and mobility are a pretty big part of receiving long-term care. So, that’s where long-term care insurance can help. It can cover custodial care, meal services, and even housekeeping services.
If you want to learn more, click here to read about the Long-Term Care Insurance Basics.
State Assistance
Many states will offer additional assistance outside of Medicaid. You can check with your local Area Agency on Aging for help.
Home Equity Loan
A home equity loan turns equity into cash. The process for obtaining such a loan is fairly easy. Your built-up equity serves as collateral for the lender. The loan will usually be on a fixed rate and paid back monthly. This can be a great source of extra cash, but be sure to first speak with a financial advisor, as this may not be the best option for everyone.
Life Insurance
If your life insurance policy has a cash value (as with permanent or whole life insurance), you can borrow from it. Policy loans do not affect your credit and they are tax-free, making them a good method for quick cash.
Choosing The Best Way To Pay For Home Care
Paying for home care doesn’t have to be a burden on you or your loved ones. Plan ahead, plan often and revisit your options as circumstances change. For additional information, recommendations, and help, visit these resources:
A Definitive Guide To The Cost of Home Care
Bob Carlson’s Retirement Watch
U.S. Department of Veterans Affairs
If You’re Looking For Home Care…
90% of seniors WANT to age at home! If you’re one of them, click here to learn more about aging in place.
Looking for home care? Then check out our directory to get started!
