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Fourteen Ways to Pay for Long-term Care | |
Medicare benefits will pay for hospital care, but are extremely limited when it comes to long-term care. And, while it is possible to receive Medicaid assistance, Medicaid facilities are not necessarily the best possible choices for quality care. So, what to do? Here are fourteen options for funding long-term care. You may think of others, and, if you do, please email us a note about them to: editor@thebestisyet.net. Use "Assisted Living" rather "Nursing Home" care for elders who do not need intensive 24-hour a day care. Personal savings including 401K, IRAs, savings account, stocks, bonds, and similar investments Social Security benefits Retirement plan benefits Veteran's benefits Long-term care insurance Medicare Medicaid Sale of home Auction valuable antiques Estate sale Family help Religious help Live with relatives Use Assisted Living rather than "Nursing Home" care for elders who do not need 24-hour a day care. With a variety of levels of care available, Assisted Living facilities may be able to meet your elder's needs. Although they do not provide 24-hour a day nursing care, Assisted Living facilities can meet the needs of many elders by providing medication reminders, transfers from bed to wheelchair, bathing, grooming and dressing help, and other services. The cost can be significantly lower than those of nursing homes, as much as $1000 less each month in Texas. Personal savings You're probably not reading this article if your elder has sufficient personal savings to pay for long-term care. But if you are uncertain about your elder's assets that can be used for this purpose, now is the time to get an accounting. Sit down with your elder to list the various assets they may own including corporate retirement plans, 401Ks, IRAs, stocks, bonds, real estate and mortgages. If you have not been granted power of attorney, get it now. Consider a "springing" power of attorney that takes effect only if her mental or medical condition deteriorates to the point that she is unable to take care of her own affairs. Social Security benefits Social Security benefits will, for many elders, provide a good start on paying for care. However, it will not cover all costs. In addition, some benefits should be preserved to provide for the needs of a well spouse. It does no good to impoverish a well spouse to care for an ill one. Like married individuals, divorced spouses married for at least 10 years may be eligible for spousal Social Security benefits. Check with Social Security for qualification and application regulations. A lawyer can help conserve family assets to provide for a spouse who does not need care. Get one who specializes in "elder law." This is not a "do-it-yourself" project. Retirement plan benefits As with Social Security benefits, retirement plan benefits should be apportioned to care for the needs of a well spouse. Again, a specialized lawyer will help you do this correctly. Long-term care insurance Long-term care insurance can relieve your anxieties about paying for care. If you're over 65, you may think that buying long-term care insurance is impossible. Not so. Our long-term care insurance agent has plans to fit almost everyone. Read her most recent article. Veteran's benefits Veteran's benefits are available to assist with the costs of long-term care. Check with the Office of Veteran's Affairs for qualification. While this may amount to only $100 per month or so, every little bit helps. Medicare Medicare benefits are available to provide limited care (30 days) for those recuperating from a hospital stay. They do not, however, cover extended care in nursing homes. Medicaid Medicaid benefits are available for those who are unable to provide the funds to care for themselves. State offices administer these benefits and will give you rules for qualification. Although many elders feel that Medicaid benefits will protect and care for them, facilities that operate with payment from Medicaid often offer substandard care because Medicaid benefits frequently fail to cover the true costs of care. If possible, avoid this option. Sale of home Owning their own homes often provides the greatest sense of security to elders. It may be difficult to persuade them to sell their homes and live on the proceeds, but it may also bring them a better lifestyle than staying in their homes. Opportunities for social interactions, regular meals, housekeeping services, trips to fun events - all are available in good Assisted Living facilities and may alleviate the fears associated with giving up home ownership. Auction valuable antiques Those who watch PBS television know the popular Antiques Roadshow. Treasured possessions brought to the show for appraisal are frequently valued at many times their original cost. Certain pieces of furniture, old toys and decorative items are highly valued by collectors. You may find similar treasures among your elder's possessions, so go on a treasure hunt with your elder. If you find objects you think may be valuable, get a certified appraiser (not an antique dealer or reseller) to estimate their value. You might find that you could earn enough from a Southeby's or other antiques auction to substantially reduce the burden of long-term care. Estate sales Estate sales can make money and will certainly reduce the load of emptying a house where elders have lived many years. Use the specialists who earn their living conducting estate sales because they can help you price items to sell. They are paid a percentage of monies earned from the sale, so it is to their benefit as well as yours to price items appropriately. Estate sale specialists may also alert you to valuable pieces you may have missed on your "Antiques Treasure Hunt." To find them, get a friend's recommendation or search the listings in any Yellow Pages. Interview several before choosing one. Family help Where there are family members who can afford to contribute to the costs of long-term care, they may be willing to do so. Hold a family meeting to discuss your elder's needs AFTER you have constructed complete asset lists. Attempt to share the burdens equally, even if one person will assume the primary responsibility. Church help Some churches help support elders as part of their church mission. Check with your elder's church to see whether they may offer assistance. Also, a number of churches offer long-term care facilities at reduced prices. Live with relatives We have listed this option last because, frequently, it is unworkable. When adults work full-time as so many do, they have little energy left over to care for an elder. They may also be caring for their own children. Adding the burden of elder care to an already full schedule can spell disaster, but there are circumstances where it will work. Consider your own needs and your ability to be a full-time caregiver before agreeing to this option. So there you have it: 14 ways to finance long-term care. We wish you good fortune in managing this difficult but solvable issue. | |
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