Paying for Care: Overcoming the Biggest Hurdle to Senior Care
As the population ages and Baby Boomers face the realities of paying for care for their parents and for themselves, it becomes clear that the biggest hurdle to senior care is paying for it.
Many long-term care facilities charge extra for services provided beyond basic room and board, although some may have “all-inclusive” fees.
The average costs of senior care in the United States in 2009:
- $198/day for a semi-private room in a nursing home
- $219/day for a private room in a nursing home
- $3,131/month for care in an assisted living facility (for a one-bedroom unit). This figure does not include personal assistance.
- $21/hour for a home health aide
- $19/hour for a homemaker services
- $67/day for care in an adult day care center
Many Ways To Pay For Care
Long-term care refers to the different levels of care that seniors may require as medical and mental needs change over time. Most seniors understand that planning is important and the following options offer the best choices available today when paying for care:
Long-Term Care Insurance - LTC insurance is an option to help you protect yourself and your family against the high cost of paying for care. The considerations for this insurance depend on age, assets, health and future plans, so connecting with an agent is necessary.
Medicaid - a program designed for the elderly with very limited resources. Facilities that accept Medicaid are limited and individuals must qualify for the services.
Medicare - covers nursing home expenses for an individual already enrolled, but only under certain circumstances and for a limited amount of time, generally following a hospital stay.
Private Health Insurance - does not cover long-term care, unless your policy specifically designates that it includes LTC insurance. Do not assume the LTC is included; make sure to confirm this with your agent.
The Programs of All-inclusive Care for the Elderly (PACE) - a new benefit that operates with a comprehensive delivery service system and integrates Medicare and Medicaid. It is only available in certain states. You need to qualify, enroll and possibly pay a monthly premium.
Veterans Benefits– benefits may be available if you or your spouse have served in the military. Services are limited to certain facilities and may involve a co-payment.
Planning On Paying For Care
Paying for care requires understanding options through education, research and careful planning. Defining your own goals, assessing your financial and medical needs, and determining what is most important in your future are all crucial aspects of your plan for paying for care. Sharing these plans with your family or a trustworthy friend who knows you well then becomes the foundation for paying for your care.
Written by senior housing writer Marky Olson.
