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7 Ways to Pay Home Care Costs

7 Ways to Pay Home Care Costs

Aging at home is an increasingly popular alternative to assisted living facilities or nursing homes for aging adults. Many seniors now live comfortably at home with professional home care aides, who perform tasks ranging from meal preparation and light housekeeping to personal hygiene, bathing, and dressing, as well as socialization and companionship. Some caregivers are trained to provide specialized care for clients who have Alzheimer’s disease and other forms of dementia. In other situations, professional caregivers provide respite for family caregivers. Depending on the senior’s specific needs, services may range from short-hour shifts a few days a week to live-in services or round-the-clock 24-hour care.

This article examines options for people to pay their home care costs.

Using Long-Term Care Insurance to Pay for Home Care Services

Most health and medical plans do not cover long-term care; however, a specific kind of insurance called long-term care insurance will cover a person for their future senior care requirements. 

As with most insurance policies, the cost of the policy and the benefit it pays out will depend on your age, health, and the policy start date. If you already require care, it is unlikely you would be eligible for long-term care insurance. But, if you are planning for aging, as we recommend, there are tremendous benefits to long-term care insurance. 

Generally, long-term care insurance will cover various options, such as in-home care, senior care, and nursing home care. It can also cover medical care, specialist care, and personal care

You can purchase long-term care insurance through an insurance agent or broker. Some states may offer “Partnership Programs,” which sell long-term care insurance partnered with Medicaid through their Department of Insurance. Your employer may also offer long-term care insurance as a voluntary benefit. 

Here is a link to an article that reviews the top companies offering long-term care insurance in August 2022. 5 Best Long-Term Care Insurance Companies of August 2022 | Money

In-Home Care Costs Covered by Veterans’ Benefits

soldier presenting a folded flagThe Department of Veterans Affairs runs programs that may provide financial assistance for in-home care.

In-home care services, including palliative and respite care, help chronically ill or disabled veterans of any age remain in their homes. 

The department also runs programs called Aid & Attendance and Housebound that provide additional financial assistance for beneficiaries who are home-bound or need assistance. 

To qualify, the veteran or surviving spouse must be eligible for a Veterans Affairs pension and require the aid and assistance of another person (or be housebound). 

The veteran must have served at least 90 days, with at least one day during wartime. The veteran or spouse must have less than $80,000 in assets (excluding the home and vehicle).

To apply for Veterans Affairs health benefits, call 1-877-222-VETS (8387) or click here to visit the website. 

Learn more information from Veterans Affairs here and click here to learn about the Aid & Attendance and Housebound programs.

Does Medicare Pay For Elderly Home Care Costs?

Medicare is a federal program that provides medical benefits to people over 65 years of age or those under 65 years of age with specific disabilities. 

Medicare focuses on necessary medical care and short-term care for conditions that will improve. In most cases, Medicare will not pay for long-term care, such as help bathing, dressing, eating, moving around, or using the bathroom. There are certain instances in which Medicare may contribute. 

Eligible home care services include physical and occupational therapy and skilled nursing treatments. Medicare will also cover hospice and respite care for patients with a terminal illness who doctors believe have less than six months to live. In this instance, as with home care, Medicare may also cover respite care for caregivers for short-term hospital stays and in-home respite care.

Please consult your State’s State Health Insurance Assistance Program (SHIP) For Medicare questions.

Does State Medicaid Pay for Senior Home Care? 

Medicaid is a joint federal and state medical benefits program that covers people in the low-income bracket. Unlike Medicare, Medicaid programs cover long-term home care services, like help bathing or getting dressed, for those who meet specific criteria. Medicaid is the largest public funder of long-term care services. 

Although there are general federal rules for who qualifies for Medicaid, some states exceed these requirements, so eligibility varies by state. To qualify for Medicaid, you must meet certain conditions determined by the level of income and the assets you own. If you are eligible for Medicaid, the state will determine whether you qualify for long-term care services. 

Please note: Medicaid eligibility requires that the person in need of care is over 65 years of age or under 65 with a permanent disability. 

You must also be a U.S. citizen in the state where you apply. In most states, seniors who receive Supplemental Security Income (SSI) benefits, or those under the poverty line, will automatically be eligible. 

Along with income requirements for eligibility, a person must hold fewer assets than the threshold in their state. These assets include checking & savings accounts and/or bonds but exempt your primary residence (provided equity in that home is less than a certain level). 

Once eligibility is confirmed, a medical specialist (usually a nurse) will assess the senior’s requirements and decide which services are needed. 

Since the states operate Medicaid, you must apply locally within your state. Your State Medical Assistance Office should be able to provide information on Medicaid Eligibility Offices locally. Applying to Medicaid takes around 45 days on average. 

An online guide to applying is available here.

Using Dependent Care Flex Spending Account (FSA) to Pay Senior Home Care Costs

You may be able to use money in your FSA on your loved one’s elderly home care services under certain conditions. Your loved one must qualify as your dependent. The standard is high, and your loved one must be unable to physically and mentally care for themselves.

Plan to save any receipts and supporting documentation related to those expenses and claims. The IRS may request itemized receipts to verify your eligibility. 

Consult your financial or tax advisor for more details specific to your situation.

Senior couple seeking financial advice

Local Benefits for Home Care Services

Depending on where the senior lives, other local benefits may be available. Local aging and disability resource centers have a wealth of information on what may be offered in your area. 

Find a location near you by clicking here.

Paying Home Care Costs Privately, Out of Pocket

Some families pay for long-term care privately from income or savings or by sharing expenses.

The Department of Health and Human Services provides detailed information for private payment of long-term care, including reverse mortgages, annuities, and trusts. 

To learn more about paying privately, click here.

Know Your Options

Regardless of the route you choose, the reality is you have options. 

As an award-winning home care agency, Visiting Angels Newton/Canton is happy to help you figure out the home care services that your loved one needs - the associated costs and possible financial resources. 

Contact us at 617-795-2727  to schedule a free in-home consultation! 

 

Contact Visiting Angels

 

About Visiting Angels Newton/Canton

Visiting Angels Newton/Canton MA is an award-winning home care agency that has been providing high-caliber at-home living assistance to seniors and people with disabilities for over eighteen years. Countless families have benefited from our in-home care, elder companion support, live-in and 24-hour assistance, dementia and Alzheimer’s care, transitional aid, and respite care services in Norwood, Boston’s (Upper) Back Bay, Brookline, Canton, Dedham, Hyde Park, Jamaica Plain, Natick, Needham, Newton, Roslindale, Stoughton, Watertown, Wellesley, Westwood, and West Roxbury, and neighboring communities in Massachusetts. The non-medical assistance Visiting Angels Newton/Canton provides can significantly impact your loved one’s happiness and quality of life.

 

 

Serving Brookline, Canton, Dedham, Natick, Needham, Newton, Norwood, Stoughton, Watertown, Wellesley and Westwood

Visiting Angels NEWTON/CANTON, MA
29 Crafts St #320
Newton, MA 02458
Phone: 617-795-2727
Fax: 617-244-0260

Serving Brookline, Canton, Dedham, Natick, Needham, Newton, Norwood, Stoughton, Watertown, Wellesley and Westwood

Visiting Angels NEWTON/CANTON, MA
29 Crafts St #320
Newton, MA 02458
Phone: 617-795-2727
Fax: 617-244-0260