Paying for Senior Care is important, but can be costly. The best assisted living and nursing homes can cost over $4,000/mo, and high-end, luxury senior housing facilities can cost $8,000+/mo (plus an entrance fee!).
Average costs for senior care (acl.gov):
Compared to 2004, senior living costs have increased 80-90%.
Here’s some good things to consider when searching for a senior care facility.
- How much money do they have saved for retirement?
- Are there assets that can be used towards senior care costs?
- What do Medicare, Medicaid, and Medi-Gap pay for?
- Do you have long-term care insurance and if so – what does it cover?
- Do you have, or should you get Medicare Supplemental insurance?
- Do you need to hire a financial advisor, and if so – how?
- What about a will or trust?
- What do your VA benefits cover?
- Does your state accept Medicaid for Assisted Living Facilities? Check here.
- How much do the various facility types cost? And what are the differences? When researching on seniorchecklist.com, make sure to look at the facility’s “starting price”.
- Is it more expensive to go to an assisted living facility or is it better to stay at home and provide In-home care?
Planning for long-term care is complicated. Each person’s needs are unique and prices vary greatly.
There’s a few different ways to finance long-term care. You will probably need to use a combination of payment sources, which may include Medicare, Medicaid, long-term care insurance, and other programs, in addition to your own resources.
We recommend consulting a professional such as an elder law attorney, financial planner, or CPA accountant when planning for long-term care; this person should be well versed in estate planning, public programs like Medicaid, and the issues and needs of older persons.
Here are 6 options that may be available to help pay for senior care:
- Medicare – for long-term care, covers some skilled nursing care either in a nursing home or in the home along with hospice care.
- Medicaid – partially federally funded, but the state-operated program provides medical care for certain low-income individuals and families who have limited resources. Medicaid usually covers nursing home care, but in some states, funding is available for assisted living, home care, or home health care.
- Medicare A & B Coverage – is for seniors who are not receiving Medicaid.
- Medicare Part A generally helps pay hospital in-patient costs.
- Medicare Part B helps pay for doctor visits, preventive care, medical supplies, lab tests, etc.
- Managed Care (HMO) – provides enhanced services for nursing home care above Medicare’s basic offering along with additional medical assistance outside of long-term care.
- Long-term Care Insurance (LTCI) – used to cover anything from non-medical home-care to nursing care; however, it depends on the type of policy you purchased.
- Veterans Benefits – cover adult day health care, home health care, respite care, and hospice care.