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There's no denying the fact that eldercare can be
expensive. In some parts of the country it will cost $75 to $100
for someone to help with basic household chores. $175 to $200
per day is not unheard of for 8 hours of help with personal care
needs. Even assisted living costs can top $5,000 per month or
more in locations where the cost of living is high.
Medicare only covers medical care...doctors,
hospitals, and related medical expenses. Costs related to what
is called "custodial care" are mostly up to us. Custodial care
is the kind of help most of our elders need. Help with getting a
bath, fixing a meal, keeping up with medications and generally
getting around are all custodial care needs - even if the need
for this kind of help is caused by a medical disability.
Typically there are five sources of funds to
pay for long term care needs:
1. Savings and other personal funds;
2. Medicaid for very low income individuals or
those who need nursing home care;
3. Long-Term care insurance;
4. Reverse mortgage
5. VA
Although there is no national program that
will directly cover the cost of long-term care, either at home
or in a facility, there are numerous programs that can help with
costs. The best way to check your elder's eligibility for most
public programs is to use
Benefits Checkup. This free website, sponsored by the The
National Council on the Aging, allows seniors to anonymously
review which state and federal benefits they might qualify for
with instructions on how to apply. Many are available regardless
of income and can help with the costs of home care, meals,
transportation, housing, prescription drug costs, and utility
bills.
Medicaid is the joint state and federal
program that covers the cost of health care for the very, very
poor and those with low incomes who need nursing home care. Look
here for
your state Medicaid office. Call to inquire about your state
eligibility rules, or use
Benefits Checkup.
A senior in need of extra care at home or in a
residential facility will not be able to qualify for long-term
care insurance. However, if your parent or older loved one is
still relatively young and has no major health problems it is
worth checking into.
A reverse mortgage, or a loan against the
equity in the senior's home, provides tax-free payments that do
not have to be repaid until the homeowner moves out or dies.
These payments can be taken as a lump sum or as monthly payments
and can be used for anything the senior chooses. Fannie Mae
offers a brief and unbiased
introduction to reverse mortgages.
If your elder is considering a reverse
mortgage or other financial product to generate income we
strongly advise that you seek the advice of an experienced elder
law attorney before making any commitment. There may be
unexpected long term legal and financial ramifications. You can
find an elder law attorney at the website of the
National Association of Elder Law Attorneys.
The VA does not cover long-term care for
veterans who don't have a significant service-related
disability. However, a little-known benefit, the "Aid and
Attendance" benefit can help low-income veterans pay privately
for home care or assisted living.
Call your VA Benefits Counselor to inquire about the Aid and
Attendance benefit. |
