One of the biggest, if not the biggest, concerns for a senior citizen entering elder care is how to pay for it. This stress most often affects a loved one’s family, too, as sons and daughters and other family members research different methods to pay for this critical juncture of their loved one’s life. We at Homeplace of Henderson understand the financial worry of this situation, and we are always willing to sit with prospective residents and families to discuss options. We believe that we can help create a plan that will minimize stress and allow your loved one to live happily.
As just mentioned, there are options. The most straightforward is for a senior to pay with savings that he or she accumulated throughout a lifetime. Additionally, some seniors in assisted living, independent living, or active adult living are still independent and working, and many might be able to pay using income from a full-time or part-time job if they choose to still work.
For others, though, being able to pay out of a retirement account or to continue to work simply is not an option. Many seniors we work with had long and successful careers but didn’t become wealthy. For residents in these situations, another option to consider is a long-term insurance plan. Like all insurance policies, there are items that will be covered and those that won’t, so it’s best to sit down with an agent and find out what kind of coverage you can get. One thing for certain is that it’s best for a family and future resident to investigate this as early as possible, while still healthy. Most often these types of plans can’t be purchased once a senior citizen moves into a community.
Future senior care residents who served in the U.S. military have another avenue to look into. Eligible veterans may be able to use their benefits to pay for a community. Veterans should also find out if they can use disability pay and/or their veteran’s pension to help shoulder the burden.
Families can also investigate using a loved one’s real estate assets to pay for elder care. One way is to undertake what is called a ‘reverse mortgage.’ With this, a homeowner can borrow cash against the equity value of their home. The lender disperses a payment each month, which can be used to pay for elder care. The loan typically doesn’t have to be paid off until the home is sold.
Finally, the last payment options we’ll mention today are Medicare and Medicaid. Medicare usually doesn’t pay for long-term nursing home stay, but it could pay for shorter visits in a nursing home when receiving therapy or hospice care. Medicaid, on the other hand, could pay for long-term care. It is a federal and state-run program that helps low income individuals afford medical care. A senior citizen is not eligible for Medicaid until his or her income and assets fall below a certain level, and that level varies according to the state you live in. Once eligibility is established, Medicaid can be used for stays in some long-term facilities. Kentucky Medicaid currently does not pay for assisted living.
We’ve just given a very brief overview of some options to pay for elder care. A couple things to keep in mind are that some of these options may not be available or optimal for your senior loved one and we didn’t list all the available options. Furthermore, a payment option can be a very individualized process—what works for one may not work for another. So, it’s very important that families and their loved ones sit with professionals in these different arenas to discuss the very best option. And of course, like we mentioned above, the professionals at Homeplace of Henderson will always meet with you to help find the right plan for your loved one.
*To contact the Homeplace of Henderson, email Jessica Beaven at jessica.beaven@homeplaceofhenderson.com, call at (270) 577-0534, or write to 1 Homeplace Boulevard, Henderson, KY 42420.