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7 Ways to Pay for In-Home Care

Posted by Anne Hein on July 29, 2016 at 2:00 PM

paying-for-home-care.jpgAs you develop a long-term care plan for yourself or a loved one, several factors must be considered, such as one’s current and future medical needs, family support system and budget. Since 90 percent of people 65+ want to stay in their home as long as possible,[1] home care is a popular option.

How much does home care cost?

In-home elder care costs depend on where you live as prices can vary greatly by market. According to Genworth’s 2016 Cost of Care Survey, the median price for private-pay home care is $20 an hour.
At that rate, it would cost about $41,600 per year for 40 hours of in-home care a week. To compare, the average cost for a semi-private room in  a nursing home is $82,125 a year and $43,539 a year at an assisted living facility.[2] According to Genworth, the average cost of long-term care is expected to rise between 1 and 4 percent over the next five years.

Paying for care at home – what are my options?

In-home care is typically paid for out-of-pocket. However, that’s not always the case. Here are seven other ways you may be able to cover long-term care costs:   

  1. Long-term care insurance is a supplemental policy purchased through a life insurance company. Long-term care insurance reimburses policyholders a set amount per day for home care services. Check with your or your loved one’s insurance about coverage or contact your local ComForCare/At Your Side Home Care office for a free insurance eligibility verification.
  2. Veterans Pension provides a home care allowance to qualifying veterans and their surviving spouses. Visit http://www.benefits.va.gov/benefits to learn more.
  3. Catastrophic auto insurance acts as a personal-injury protection or “no fault” insurance, which can cover home care expenses. Check with your or your loved one’s insurance about coverage or contact your local ComForCare/At Your Side Home Care office for a free insurance eligibility verification.
  4. Workers’ compensation may cover home care costs associated with an illness or accident on the job. Check with your or your loved one’s insurance about coverage or contact your local ComForCare/At Your Side Home Care office for a free insurance eligibility verification.
  5. Reverse mortgages are available to people 62+ who own their home. The funds can be received in monthly installments or a lump sum. Check with your or your loved one’s bank for eligibility requirements, terms and conditions.
  6. Medicaid may cover home care services through a waiver program, which vary by state. The waiver programs are often coordinated through Area Agencies on Aging. Contact your local ComForCare/At Your Side Home Care office to see if they participate in a waiver program. It’s important to note, Medicare does not pay for long-term home care services. Medicare covers short-term home health care prescribed by a physician. These services include skilled nursing, physical therapy, occupational therapy and speech therapy. Assistance with bathing, feeding and other personal care may also be provided while a person is receiving home health care.
  7. Family funds can be set up among siblings and other family members to cover the cost of home care for an aging parent or relative. Be sure to clearly spell out the terms of the agreement and consult an elder law attorney for guidance.

Paying for home care is just one part of the long-term care process. For additional information about in-home care, download our free e-book: The Ultimate Home Care Planning Guide and let ComForCare/At Your Side Home Care help you live your best life possible.

DOWNLOAD E-BOOK If you have additional questions or would like to schedule a free in-home consultation, call 800-886-4044. More information can also be found at www.comforcare.com and www.atyoursidehomecare.com

 

[1] Aging in Place: A State Survey of Livability Policies and Practices. http://assets.aarp.org/rgcenter/ppi/liv-com/ib190.pdf    

[2] 2016 Cost of Care Survey. www.genworth.com/costofcare  

Topics: Home Care Planning, Caregiving, Finances

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