Two Truths and One Lie About Paying For Long Term Care
Aside from purchasing a home, paying for long-term care can be one of the largest monetary costs in our entire lives. In addition, this period in an older resident's life can be emotional, stressful, and complicated. It is best to discuss and plan for a move to a senior community long before it becomes a crisis. Part of this planning process is having an understanding of how one will pay for this care. This article will provide the reader with information to better understand some of the options and myths surrounding paying for senior living.
Two Truths and One Lie…..
There are government programs available to help offset the cost of long-term care…True
While these programs can be difficult to find and navigate the requirements, they can be a lifeline for lower-income older residents to help pay for senior living. Below are some of the common programs that are available in California. Your state may also have further financial support and resources.
Veteran Aid and Attendance Benefit: VA Aid and Attendance is a monthly pension benefit that provides tax-free payments to Veterans who served during wartime. In addition to being available for Veterans, single surviving spouses and dependent children are also eligible for this benefit.
Some helpful online resources are available for more information about this program: https://www.va.gov/pension/aid-attendance-housebound/ , 2022 VA Aid and Attendance
Supplemental Social Security Income: For individuals with lower income and who qualify for SSI, some senior living communities will accept this income as a sole means of paying for care. Unfortunately, this payment source provides a very low amount (up to $1200 per month) for rent and care, and therefore many senior living facilities do not participate in this program.
MediCal Assisted Living Waiver: This is a newer program with the goal of facilitating older residents to stay in assisted living rather than paying for high-cost care in a skilled nursing facility. This program provides assisted living communities with a higher level of compensation based on the care needs of the resident. This program is still in the pilot stage with a long waiting list to apply for the program. https://www.dhcs.ca.gov/services/ltc/Pages/AssistedLivingWaiver.aspx
Medicare or other medical insurance will pay for long-term care…… False
Health insurance only provides coverage for medical-based care and not for non-medical long-term care (e.g. assisted living). Your health insurance will cover up to 100 days of care in a nursing home. If long-term care is needed (greater than 100 days) in a nursing home due to ongoing medical care needs, alternative funding sources (including private pay) will need to be determined.
Unfortunately, it is very common that a senior resident or family member thinks that their Medicare will cover the cost of assisted living and are quite shocked and upset when they realize that the senior will need to cover that cost themselves.
With Appropriate Planning, paying for long-term care is possible…..True!
Over 80% of seniors will at some point need additional care and support such as in-home care or assisted living. The time to prepare for planning for this care is well before anyone realizes that they will need it. However, with appropriate financial planning and working with a financial planner with experience and knowledge in this area, many seniors will realize that they have far more options and resources to cover the cost of this care. To find a financial planner with experience working with seniors, I recommend working with a Certified Financial Planner (CFP). You can find a planner on their website: https://www.plannersearch.org/
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