As Americans live longer, most of us will require some type of elder care. Those who are turning age 65 today have a nearly 70% chance of needing some type of personal care services in their remaining years, and 20% will need care for five years or more.
While family and friends may be able to help initially at home, professional personal care services are usually needed at some point. This care may be delivered in a variety of settings, including at home, in a continuing care community, assisted living, memory care or skilled nursing facilities.
Senior care can be expensive, and costs can fluctuate based on setting and needs. Some of the more significant costs include maintaining facilities or the need for 24-hour care from licensed medical professionals. As an example, in 2021, the average cost of a private room in a nursing home was nearly $9,000 per month.
Given the significant potential costs, it’s understandable that many older adults and their families are concerned about how they will pay for senior care.
Using Personal Assets to Pay for Senior Care
By the time they reach the age of needing senior care, many people have set aside some funds to pay for care if they need it. They may earmark savings accounts, retirement savings or proceeds from selling a home or other assets.
In most cases, a senior will need to use their own money to pay for elder care services. However, depending on the services they need, they may be able to combine their personal savings with money from other sources like Medicare, Medicaid or supplemental long-term care insurance policies.
Government Sources for Elder Care Funding
Medicare helps pay some medical costs for covered services such as hospital stays, doctor visits, some home health care, hospice and preventive services. However, it’s important to know that Medicare only covers care provided for a specific duration of time.
For example, Medicare will cover at least part of a short-term stay (less than 100 days) in a skilled nursing facility or for some doctor-prescribed home health care services. However, Medicare does not cover assisted living, a long-term stay in a nursing home, or 24-hour or personal care at home.
Medicaid covers the costs of medical care and some types of long-term care for people with limited income if they meet eligibility requirements. If the senior is eligible for veterans’ benefits, the U.S. Department of Veterans Affairs (VA) also can provide coverage for long-term care at a facility or at a VA-managed home.
Additional Financing Options for Senior Care
To supplement personal funds and government programs, financing options for elder care include long-term care insurance, reverse mortgages, life insurance policies, annuities and trusts. A trusted financial advisor or elder law attorney is a reliable source of information on these more nuanced options.
Paying for elder care, including in-home senior care, can feel like a daunting task. Kadan Homecare is here to support you and your family as you make decisions about personal care in the Atlanta area. We invite you to contact us for a free consultation at 770-396-8997 or info@kadan.org.
