Many people find that they need the services of a nursing home but are unsure of how to pay for this care. As Americans are living longer today, every person should plan for the need for long-term care. Working with a certified financial planner or an elder law attorney, a person can determine how to set aside funds to receive the care they need as they age. What might these professionals recommend?
The Cost of Nursing Home Care
When people learn that the average cost for a nursing home each month is approximately $8,660 to $9,733, depending on whether the person has a private or semi-private room, they likely wonder, “how can I pay for nursing home care?”. These figures are from 2023, and the cost has likely risen in recent years, and they are scared to see today’s figures.
Nursing homes aren’t free, as they have overhead just like other businesses. The American Hospital Association reports that 60 percent of nursing home residents rely on Medicaid to cover the monthly cost of their care. Medicare, in contrast, pays nothing toward this care. The other 40 percent of nursing home residents use long-term care insurance, annuities, reverse mortgages, and other private pay methods.
Medicaid
A person should not assume Medicaid will automatically pay for their nursing home care. Individuals must qualify to receive assistance from this program, and they must be cautious when taking steps to increase their eligibility. The program has eligibility rules and limitations in place. People must be aware of the look-back period to ensure they will qualify, and the government considers their income and asset threshold when making this determination.
Medicare
Medicare doesn’t cover long-term care, including nursing home care. People often hear of others who have received this type of care under the government program. Medicare Part A covers some skilled nursing care, but this is not nursing home care. They pay for services offered following a hospital discharge, in many cases, and the program only covers 100 days of this care.
Veteran’s Benefits
Men and women who have served in the military may find that their nursing home care is covered. The need for this care must be a disability resulting from their time in the service, and the veteran must meet income eligibility requirements. Veterans might also be required to pay a co-pay.
Social Security
Social Security benefits may be used to help pay for nursing home care, but they won’t cover the entire amount. Individuals who receive Supplemental Security Income may find that their benefits are affected if Medicaid covers their nursing home care. When a person qualifies for Medicaid, the SSI may be reduced because it is a needs-based program. Some people find they only receive $30 a month from SSI after qualifying for Medicaid.
Alternatives to Nursing Homes
Families may wish to consider alternatives to nursing homes before incurring the costs of long-term care. Group homes might be able to provide the care individuals need without the high expense. Families might also find that a loved one can remain at home with the help of home health aides and other medical professionals. Adult daycare is an option for families who would prefer to keep a loved one at home rather than having them reside in a skilled nursing home. This service will enable family members to continue working and fulfilling other responsibilities while having their loved ones at home with them at night.
Many seniors need skilled nursing care at some point. However, all options should be explored to ensure this type of community is right for the loved one. If it is, paying for this care is the next consideration. Explore all options to ensure this individual gets the care they need for the highest quality of life.
