Eventually, the time will come when an elderly relative will need help with all of the activities of daily living (ADLs). They may need help getting out of bed in the morning, shaving, bathing and dressing. They will need help preparing their meals, eating and remembering to take their medicine. They will also have difficulties keeping the house clean. It may not be possible for family members to attend to all of these duties on a daily basis, and the family will need to pay someone to help, but how can people comfortably afford to pay for it?
Long-Term Care Insurance
One great way for people to pay for their eldercare is with long-term care insurance. The long-term care insurance policy is something that the person in question will need to purchase when he or she is younger and in good health. It will be easier to qualify for the policy at this time, and it will be less expensive.
Long-term care insurance allows for family members to place their older relatives in nursing homes where they will receive help with all of their ADLs. They will also be able to hire someone to come into the home and assist the patient in dressing, bathing and caring for their grooming needs if this is a better solution for everyone.
This insured pays for long-term care insurance with premiums every month that keep the policy active. After the insured has deteriorated to the point of needing constant care and help with ADLs, they will be able to file a claim for their benefits from their long-term care policies.
Take Out a Home Equity Line of Credit or Home Equity Loan
Sometimes, people do not look into purchasing long-term care insurance early enough to qualify. In these cases, if there is equity in the family home, the family can choose to obtain a home equity line of credit (HELOC) or a home equity loan. The HELOC will offer them a line of credit based on the equity in their home that they will receive in the same way that they receive a credit limit on a credit card. If they choose, they can pay for the assisted living facility in installments from their line of credit. The advantage of the HELOC is that they will not have to pay interest on the amount that they qualified to borrow until they have spent the entire amount. With a home equity loan, they will be able to take a lump sum of money that will pay for the skilled nursing facility.
Medicare gives people the option of purchasing one of several Medigap policies. Medicare pays a great deal of the costs of a senior’s medical expenses, but it does not pay for everything. The patient would be responsible for paying the portion that Medicare does not pay, and this can be around 20 percent of the cost. Medicare supplemental insurance policies came into being to fill in the gaps between what Medicare pays and what the patient must pay.
Several of the following Medigap plans pay for care in a skilled nursing facility:
• Medigap Plans C, D, F, G, M and N pay 100 percent of the coinsurance payment
• Medigap Plan K pays 50 percent of the coinsurance payment
• Medigap Plan L pays 75 percent of the coinsurance payment
Medicaid is a state-run program that addresses the issues of caring for the elderly. If elderly patients have a house but do not have other forms of insurance or assets to pay for long-term care, they may be eligible for Medicaid. Eligibility requirements are different for every state, so family members will want to check with their individual states before they apply for Medicaid. If elderly patients qualify for payment through Medicaid, they will be able to receive assistance in their homes with cooking, cleaning and grooming.
Veteran’s Health Care
Members of the military who served for at least two years active duty and were not discharged dishonorably or for bad conduct qualify for VA Healthcare. The VA healthcare will pay for several types of long-term care, including the following:
• Assisted living facilities
• Skilled nursing facilities
• In-home skilled nursing care
• Adult day care
Those who have been disabled due to their service are given priority in these programs.
Kelly Anderson is an assisted living and eldercare blogger who always looking to help families find their best options. For moe information please visit http://assistedlivingtoday.com/s/vermont/assisted-living/