The cost of senior care strains many family budgets to the breaking point. You want to offer your loved one the best care possible, but cost is a major factor in determining the facilities that will work for your family. To help make senior care more affordable, there are several payment options to consider. It’s important to keep in mind, however, that a number of these options are available only for seniors and families who have taken the time to think ahead and plan according to their upcoming needs.

Health Insurance and Medicare

Medicare and most forms of private health insurance don’t pay for custodial care. When they offer long-term care options, they typically only include skilled care when it’s medically necessary. Health insurance plans are typically very specific about the types of care that they cover, how long they will cover it, and when that coverage will cut off. In general, Medicare and private health insurance won’t cover assisted living, long term care at a nursing home, residential care homes, or any type of long-term care. They will, however, offer bridge coverage following illness, injury, or surgery that has led to a temporary need for long-term care—often the wake-up call that lets you know that you need to take a serious look at the coverage you’ve selected for your senior loved one.

Long Term Care Insurance

Long term care insurance (LTCI) is insurance that is designed specifically to pay for long term care services. These policies are usually added to your existing health insurance policies and cover such necessities as skilled nursing care, assisted living care, respite care, hospice care, and memory care. LTCI policies, however, typically need to be taken out before you need them. The earlier your senior loved one initiates one of these policies, the less expensive it will be. In addition, there may be a waiting period between beginning to pay for the policy and being able to use it. However, most policies are set up so that the cost doesn’t increase with age or due to a decrease in health, making it a vital part of long-term care planning for many seniors.

Life Insurance Policy Conversions

Does your senior loved one have a life insurance policy? Instead of waiting for benefits that will only be paid out following their death, life insurance policies can be converted to a “long term care benefit plan.” This is particularly beneficial if your policy is in danger of lapsing or being surrendered. All health conditions are accepted, and there are no wait periods. Typically, term, universal, whole, and group policy life insurance with a death benefit of $50,000 to $1 million can be converted to use for long term care, and the funds can be used to cover any long-term care expenses.

Medicaid

For the vast number of Americans who can’t afford long-term care on their own or with help from family members, Medicaid is the ideal solution. It is jointly funded by the federal government and the individual’s state of residence. Each state has their own unique rules regarding how much income an individual can earn in order to be eligible, how many assets they can possess, and other factors. Medicaid is also an ideal option for individuals whose other coverage options have run out, leaving them without the funds necessary to continue to pay for long-term care. While coverage varies by state, most states allow residents to use Medicaid to pay for long-term care at a skilled nursing facility, in an assisted living community, as well as for in-home care that will allow elderly individuals to continue to live in their own homes in spite of their health challenges.

No one wants to think about the need for long-term care either for themselves or for a loved one. Chances are, you imagine your loved one continuing on independently until the last days of their life. Unfortunately, long-term care is becoming a reality for increasingly more seniors, many of whom are living longer than they expected. Planning for the future is critical for seniors and their family members. You want your loved one to have the care that they need in order to maintain a high quality of life, and knowing how you’re going to pay for long-term care if it becomes necessary is a critical part of that process.

For more information on Medicaid eligibility in your state, please contact Senior Planning Services at: 855.S.Planning (775-2664) or via email: Consultations@senior-planning.com