Learn the options for how to help finance your loved one’s home care expenses
Many seniors and children with aging parents are faced with the challenge of how to pay for senior care. Taking care of one’s parents alone can be a tough task, that’s why assisted living communities or in-home care are both popular alternatives.
However, these alternatives come with hefty costs—the average cost of assisted living varies state-by-state, but the nationwide average monthly cost is $4,000 and the average hourly cost of in-home care can range from $16 to $28 per hour, depending on the state. [1]
The cost of senior care can be daunting, but it’s important to understand that there are many options for paying for senior care that you may not even know about. That’s why we’ve created the ultimate guide on how to pay for senior care. Continue reading to learn more about the different options and decide what’s best for you and your family.
Option #1: Savings
Your aging loved ones may have funds set aside that will cover long-term care and medical expenses. However, not everyone has this money saved, so it’s important to talk to your loved ones about this option early on in their lives.
Option #2: Long-term care insurance
Long-term care insurance is a private plan that covers the cost of an assisted living facility and in-home care.
This is a great option if there is time to plan ahead, as experts suggest to enroll in your mid-50s. [2] The younger and healthier you are when you become insured, the less your yearly premiums will cost. The average annual premium for a 55 year old couple is $3,870, while the average cost for a 65 year old couple is $5,815. [3]
Option #3: Medicare and Medicaid
If your loved one is over 65 or has an eligible disability or illness, they may qualify for Medicare. Medicare has different portions that help cover specific medical and care services including:
- Medicare Part A covers inpatient care in hospitals, hospice care, nursing home care, and home care. You usually do not have to pay for Part A if you paid Medicare taxes while working.
- Medicare Part B covers doctors services, outpatient care, medical equipment, home health care, and preventative services. Most pay a monthly premium for this portion.
- Medicare Part C (Medicare Advantage) includes Part A, Part B, and usually prescription coverage. The cost for this portion varies by plan.
- Medicare Part D helps to cover the cost of prescription drugs. [4]
Medicaid helps to cover medical expenses for people with limited income. The eligibility requirements vary by state. Medicaid will help to cover the cost of in-home care, including personal care, basic cleaning and cooking, and transportation. [5]
Read more:
5 surprising things an in-home caregiver can help you with
Option #4: State programs
Many states have their own in-home care assistance programs such as the Florida Home Care for the Elderly (HCE) Program.
The HCE Program is a non-Medicaid program that compensates the caregiver to help support low-income aging loved ones in their own homes. The caregiver may be a family member but does not have to be. The payments can be distributed as basic payments, which help to cover food, clothing, and medical costs, or special payments that help cover necessary medical services, such as equipment or nursing homes. [6]
Option #5: Veteran’s Aid and Attendance Pension Benefit
Many veterans may not be aware of this significant benefit through the U.S. government, known as the Veteran’s Aid and Attendance Pension Benefit, which can provide up to $2,295 per month for personal home care services for veterans and their surviving spouses—for the rest of their lives.
If you are a veteran or veteran’s spouse over the age of 65 who served in an approved time of war, requires assistance at home, and meets certain income requirements, you should find out if you qualify.
Learn more:
How we’re helping veterans stay independent and healthy
Option #6: Home care loan
A home care loan is used specifically for funding in-home care while waiting on assistance programs’ approval.
For example, if your loved ones are approved for the Veteran’s Aid and Attendance Pension Benefit, the funds will cover the costs of home-care from the filing date. This money can then be used to pay the home care loan.
Option #7: Reverse mortgage
Reverse mortgages allow homeowners over the age of 62 with home equity to borrow against the value of their home and receive funds as either a lump sum, monthly payment, or line of credit.
This type of mortgage doesn’t require the homeowner to make any loan payments, instead they repay it when they sell or move. [7]
The Flourish in Place difference
At Flourish in Place, we offer home care options for every need and budget, and specialize in helping families find solutions to pay for the appropriate level of care.
Additionally, we are the only Central Florida agency that has received an A+ Rating from the Home Care Standards Bureau with home care solutions designed to help people not just age in place, but flourish with dignity.
To learn more, please request your Free Consultation today.
Sources:
1: Paying for Senior Care | Calculating the Cost of Assisted Living vs. Home Care
4: Medicare.gov | What’s Medicare?
5: Senior Living | Will Medicaid pay for in-home care?
6: Family Caregiver Alliance | Florida Home Care for the Elderly (HCE) Program
