Paying for Senior Care
Paying for Senior Care
Monday August 3, 2015
Paying for Senior Care
As people continue to live longer than ever, the need for long term health care is increasing. This may include help from a home health provider, an adult day care program or a move to a skilled nursing facility. To be prepared for any future health care needs, planning for how to pay for care now can be helpful. Here are some options to consider:
Long term care insurance
Long term care insurance covers health care services and supports for a longer time period of them than traditional health insurance. In some instances, a life insurance policy can be bundled with long term care coverage.
When purchasing an insurance policy, the purchaser can choose a range of care options and benefits. Care can be received across a number of settings including at home, assisted living facilities, nursing homes, adult day cares and hospice. It is best to consider purchasing insurance before health care needs occur as some insurance companies will reject applications from those already using long term care services, those who have certain chronic illness such as Alzheimer’s or Parkinson’s, or who may have had a stroke or metastatic cancer.
For more information on long term care insurance, visit the Government’s Administration on Aging or the Pennsylvania Department of Insurance.
Reverse Mortgage
A reverse mortgage is similar to a home equity loan and will let you borrow against the value of your house. As long as you live in your home, you do not have to pay back any money received. You can spend the money however you choose and can receive it as a lump sum, monthly payment or line of credit. Before deciding to move forward with a reverse mortgage, it is important to speak to a financial advisor as well as any heirs to the home as they will need to pay back the loan after the last borrower passes away.
Medicare and Medicaid
Medicare and Medicaid will pay for long term care, but restrictions apply and can vary from state to state. If a short stay in a skilled nursing facility is needed Medicare will cover but typically only after a stay in the hospital of three days or more. For more information, visit the Medicare website.
Medicaid will cover long term care for those with low incomes and little assets. Because it is state run, coverage will vary accordingly and any services received will need to come from an approved Medicaid provider. To find out more about what your state coverage offers, check out the Medicaid website.
These are only some options that may be available to help pay for senior care. For more information on payment options for long term care, please click the link to contact the Abramson Care Advisors. Or you can call a care advisor at 215-371-3400. An experienced senior care consultant is available to help you free, 24 hours a day seven days a week.
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