Planning for your loved one's home care needs is crucial to ensure their comfort, security, and well-being as they age. To help you explore your financial options and create a comprehensive plan, we've compiled a list of ways to pay for your beloved elder's home care needs.
Don't let the cost of home care hinder you from providing your loved one with the temporary, part-time, or live-in care and companionship they deserve. Various state-based programs may offer financial assistance to cover some or all of the costs of home care.
1. Long-Term Care Insurance
The first step in planning for your loved one's home care needs is to determine if they have a Long-Term Care Insurance plan. Traditional health insurance, Medicare, and Medicaid do not cover non-medical home care, making Long-Term Care Insurance crucial. Having such a policy in place ensures comprehensive home care coverage when needed.
2. Veteran's Benefits
The Veteran Aid & Attendance Pension program provides families and individuals with an additional means to cover home care costs. Qualifying individuals can receive financial assistance to pay for needed care at home, in an assisted living community, memory care, or a nursing home.
3. Asset Conversion
For families with non-liquid assets, there are options to convert these assets to cover home care expenses. Programs like reverse mortgages, home equity lines of credit, and other asset conversion methods provide financial solutions for long-term home care needs.
4. Medicaid Programs
State-specific initiatives, often referred to as "nursing home diversion" programs, are designed to keep seniors eligible for Medicaid in their own homes instead of nursing homes. These programs help cover the cost of home care when it's more cost-effective than a nursing home.
5. Tax Credits and Cost of Care Reductions
Explore various state and federal programs, initiatives, and tax credits that can reduce your family's tax burden, effectively lowering the overall cost of care.
6. Savings & Pensions
Private payment through savings or long-term care insurance is the primary way to cover non-medical care expenses. As resources diminish, more care assistance options become available, making use of savings, Social Security benefits, and private pensions an immediate means to cover in-home care costs.
By understanding and exploring these financial options, you can ensure that your loved one receives the care and support they need to age comfortably and safely in their own home.