{"id":1050,"date":"2016-11-15T07:43:16","date_gmt":"2016-11-15T07:43:16","guid":{"rendered":"http:\/\/template.assistinghands.com\/?page_id=1050"},"modified":"2024-07-26T18:43:43","modified_gmt":"2024-07-26T18:43:43","slug":"how-to-pay-for-care","status":"publish","type":"page","link":"https:\/\/assistinghands.com\/118\/florida\/southjacksonville\/services\/how-to-pay-for-care\/","title":{"rendered":"How to Pay for Care"},"content":{"rendered":"
\"How<\/p>\n

When they reach retirement age, many senior citizens want to continue to live independently in their own homes.\u00a0 However, this can become difficult when they need care and assistance due to chronic health conditions, dementia, disabilities, or general physical and cognitive decline that comes with the aging process.\u00a0 In order to stay at home safely, some seniors may need someone to provide the personal care, assistance, and supervision they need.\u00a0 The best care option for seniors who want to stay at home is senior home care from a professional home care agency like Assisting Hands Home Care.<\/p>\n

At Assisting Hands Home Care, we provide senior home care for seniors who want to age in place in South Jacksonville and the surrounding areas.<\/strong>\u00a0 Our experienced caregivers will provide professional care to meet the specific needs of your loved ones so they can live safely at home.<\/p>\n

Our senior home care services area great option for seniors who want to continue living at home, but we also understand that the cost of home care can be a lot for many families.\u00a0 Fortunately, there are many different ways to pay for senior home care to ensure that your senior loved ones get the care they need to live at home.\u00a0 This guide discusses the options available to help you and your family pay for in-home care.<\/p>\n

The Cost of Home Care<\/h2>\n

The cost of non-medical home care will vary depending on the level of care needed and the amount of time your loved one needs a caregiver in the home.\u00a0 According to Genworth\u2019s Cost of Care Survey<\/a>, the national median cost of non-medical home care is $26 per hour as of 2021.<\/strong>\u00a0 If your family has decided that it is time to get home care for a senior loved one, it is crucial to consider the cost of care and explore the many options available to cover the costs.<\/p>\n

The following are the main options for covering the cost of senior home care:<\/strong><\/p>\n

1. Personal Asset Pay<\/h2>\n

\"How<\/p>\n

A lot of families cover the cost of home care by simply paying with money from their personal assets.\u00a0 This can be done with savings from private bank accounts, and some may also use money from individual retirement accounts (IRAs), health savings accounts (HSAs)<\/a>, investments, pensions, annuities, real estate, and Social Security benefits. \u00a0Reverse mortgages and collective sibling agreements can also help families pay from their personal assets for home care.<\/p>\n

The following are some options to consider to help pay for home care:<\/strong><\/p>\n

1.1 Collective Sibling Agreement<\/h3>\n

When seniors need care at home, their adult children may help them cover the cost of care. \u00a0Adult siblings can develop an agreement<\/strong> among themselves to contribute to the cost of home care for their senior parents.\u00a0 This agreement can set the terms for splitting the cost among the siblings, either dividing the cost into equal parts or designating one or some of the siblings who can afford it to cover the cost.\u00a0 If only some of the siblings will contribute, the agreement may stipulate that the siblings who contributed will be reimbursed first when the inheritance is distributed.\u00a0 It is important to maintain accurate records of how much each sibling has contributed to ensure that they are correctly reimbursed.\u00a0 It is also highly recommended that the family maintains accurate records of the expenses.<\/p>\n

1.2 Reverse Mortgage<\/h3>\n

Reverse mortgages<\/strong> were originally created by the federal government to help seniors stay in their homes.\u00a0 Seniors can use reverse mortgages to get the value of the equity of their home in cash in one payment or in monthly payments.\u00a0 The amount of equity that seniors can receive from their home increases over time, and seniors can continue to collect this money, even if the money they get exceeds the worth of the home.\u00a0 A senior will never have to move out of his\/her home to pay a reverse mortgage, but when the senior passes, the loan must be repaid.\u00a0 Oftentimes, the loan is repaid by selling the home.<\/p>\n

There are some conditions that must be met to receive a reverse mortgage.\u00a0 The person getting the reverse mortgage must be at least 62 years old and either outright own their home, or have a small amount left on the original loan.\u00a0 Before receiving payments from a reverse mortgage, all loans that hold the home as collateral must be paid.\u00a0 The value of the reverse mortgage is decided by the bank based on the home\u2019s worth and the applicant\u2019s age.\u00a0 The money from a reverse mortgage can be used to help seniors pay out of pocket for home care.<\/p>\n

Reverse mortgage loans are a great resource, but some have strict rules when it comes to homeowner\u2019s insurance, mortgage insurance, and home maintenance which may make them easy to default.\u00a0 Make sure your loved one uses a reputable bank or mortgage broker and is aware of all of the terms of the contract.<\/p>\n

1.3 Annuity<\/h3>\n

An annuity<\/strong> is a fund in which one can invest money at a fixed or variable interest rate, and withdrawals can be made from this account once it reaches an agreed upon maturation date.\u00a0 Seniors can use annuities to create a steady income from their pension or retirement savings.\u00a0 The money they receive from the annuity can be used towards home care among other personal expenses.\u00a0 Another important note about annuities is that the amount of money invested into the account is not considered an asset if the senior applies for Medicaid.\u00a0 The income paid out from an annuity is however considered an asset by the government.<\/p>\n

If your senior loved one is interested in an annuity, make sure they get one from a reputable financial institution and work with a representative that has their best interests at heart.\u00a0 Some seniors have been scammed with annuities from unscrupulous representatives.<\/p>\n

2. Long Term Care Insurance<\/h2>\n

\"How<\/strong><\/p>\n

Long-term care (LTC) insuranc<\/strong>e is a type of private insurance plan that helps cover the costs of home care and assisted living.\u00a0 How much LTC insurance will cover depends on the individual plan.<\/p>\n

When applying for LTC insurance, make sure that the plan includes an allowance for non-medical home care.\u00a0 With some policies, the insurance provider may pay a licensed home care agency, like Assisting Hands Home Care, directly or refund the policy holder for the expense of home care.<\/p>\n

It is important to plan ahead regarding LTC insurance because it can be difficult for seniors to get it once they pass a certain age.\u00a0 Those applying for coverage in their 50s and 60s are more likely to get LTC insurance and their premiums will be quite low.\u00a0 However, according to the American Association for Long-Term Care Insurance<\/a>, more than half of those 75 and older who applied for LTC insurance were declined.\u00a0 Therefore, older adults should apply for LTC insurance while they are still relatively young (50s and 60s) to have it in place to help with future home care costs.<\/p>\n

3. Private Insurance Options<\/h2>\n

Private insurance plans<\/strong> may cover some aspects of home care, but this will depend on the type of coverage in the policy.\u00a0 Individual health care insurance policies do not usually cover non-medical home care and may only partially cover the cost of skilled in-home care.\u00a0 Therefore, basic health care insurance may not be the best private insurance option to cover home care.<\/p>\n

The following are the best options for covering the cost of home care through private insurance:<\/p>\n

Cashing Life Insurance Policy<\/h3>\n

Life insurance policies<\/strong> are usually taken out to pay the family members of the policy holder when they pass away. However, those who own life insurance policies can either take a loan from the value of the policy or exchange the entire policy for its cash value which can then be put towards home care.<\/p>\n

Life insurance policies can include an \u201caccelerated death benefit\u201d rider<\/strong> which takes a cash advance from the total benefit amount and gives it to the policy holder.\u00a0 To be eligible for this rider, the policy holder must be unable to perform basic activities of daily living (ADLs) or be terminally ill with a life expectancy of under 24 months.\u00a0 Physician statements and medical records will be needed to prove illness or loss of function before receiving the advance.\u00a0 Taking the cash advance does not end the policy, so policy holders must continue to pay the premiums to ensure their beneficiaries will receive what is left of the benefit amount.<\/p>\n

Another option with life insurance policies is to sell the policy to a third party for cash.<\/strong>\u00a0 The third party that purchases the policy will assume the premium payments and receive the benefit amount upon maturity.\u00a0 The cash received from selling a life insurance policy can then be put towards home care.\u00a0 Seniors also have a choice of converting their life insurance policy into a certain dollar amount of home care as a \u201clong-term care\u201d or \u201clife care\u201d benefit account.\u00a0 With this option, the senior\u2019s eligibility for Medicaid will not be affected if done properly.<\/p>\n

4. Veterans Benefits<\/h2>\n

\"How<\/p>\n

Seniors who are veterans of the U.S. armed forces, as well as spouses of U.S. veterans, may be eligible for health benefits or a pension from the Department of Veterans Affairs (VA) to help pay for home care.\u00a0 In general, veterans must have served for more than 90 days of active duty with at least one day during wartime and an honorable discharge to be eligible for VA benefits<\/strong>.<\/p>\n

4.1 VA Health Benefits<\/h3>\n

Veterans and their spouses<\/strong> may be able to get coverage for home care through the Veterans Health Administration (VHA) Standard Medical Benefits Package<\/strong>.\u00a0 Veterans who meet the requirements for these benefits will have access to the following programs than can cover some of the costs of in-home care: VA\u2019s Skilled Home Health Care Services (SHHC), Homemaker and Home Health Aide Services (H\/HHA), and Home-Based Primary Care.<\/strong><\/p>\n

4.2 VA Pension Benefits<\/h3>\n

VA Pension Benefits<\/strong> are available for veterans and the spouses of veterans who need long-term help with activities of daily living (ADLs).\u00a0 The benefits are also known as \u201caid and attendance\u201d or \u201chousebound\u201d benefits, which are monthly disability payments that can be used to cover the costs of home care.<\/p>\n

Documentation from a doctor is required to qualify for aid and attendance payments and the amount is calculated based on the level of disability of the applicant.\u00a0 Once the veteran is approved to receive these benefits, they may continue to receive these benefits until the end of their life.<\/p>\n

4.3 Applying for Veterans Benefits<\/h3>\n

Unfortunately, the process to qualify for veterans\u2019 benefits is quite complex which turns some people away.\u00a0 In fact, only a small number of eligible veterans actually receive the benefits they are entitled to because many are either unaware of the benefits available to them or how to apply for them.<\/p>\n

In addition to the conditions outlined above, including service time and a dishonorable discharge, there are several other things that are considered to determine eligibility, including income and asset limits.\u00a0 This increases the complexity of the application process.\u00a0 Senior veterans and their families can get help with the application process from Veterans Service Organizations (VSOs).\u00a0 These organizations by law are not allowed to charge for their services, therefore it is free for families to enlist their help in applying for VA benefits.<\/p>\n

5. Medicaid<\/h2>\n

\"How<\/strong><\/p>\n

Medicaid<\/strong> is health coverage provided through a joint state and federal program to low-income seniors.\u00a0 The state administers the benefits which means that the rules for Medicaid eligibility and uses will vary between states.<\/p>\n

Depending on the state in which the applicant lives, Medicaid should cover non-medical home care, home health care, and other in-home support.\u00a0 However, Medicaid typically limits long-term home care coverage to those with severe physical or cognitive limitations that would require them to end up in a nursing home otherwise.\u00a0 For those who are eligible for Medicaid to cover home care costs, it will only cover in-home care from a Medicaid-certified home care agency.<\/p>\n

Visit Benefits.gov<\/a> for more information about the eligibility requirements for Medicaid in the State of Florida.<\/p>\n

5.1 Home and Community-Based Services (HCBS) Waivers<\/h3>\n

Home and Community-Based Services (HCBS) waivers<\/strong> are programs that expand Medicaid benefits to cover long-term care for seniors who would have to live in a nursing home without these services. HCBS is not a part of Medicaid but is funded by Medicaid through waivers of normal Medicaid rules.<\/p>\n

These programs provide long-term coverage for non-medical home care<\/strong> that is not usually covered by Medicaid.\u00a0 Those who are eligible will also continue to receive coverage if their medical condition stabilizes with the goal of helping them avoid leaving their home for a nursing home.\u00a0 HCBS programs can cover the following:<\/p>\n