How to Pay for Home Care

How to Pay for Home Care

Payment Assistive Sources for Home Care Assistance

Genesis Home Care’s last two articles discussed who we are as a company, the services we provide and the Affordable Care Act’s expected cost increase on average of 34%. So I feel as though next in line should be on methods and ways to pay for services.

When it comes to life one thing is for sure- it is uncertain, but “preparation beats worry” almost every time. Whether it is an unforeseen medical incident, an accident, degradation of health or loneliness and boredom there may come a time when you need some outside help for yourself or a loved one to carry on non-medical day to day activities. A popular growing choice is home care assistance.

Home care assistance isn’t a carte blanche for all things medical. You will first have to determine the level of assistance you will need. Do you need a Personal Care Assistant (PCA), Home Health Aide (HHA), a Certified Nursing Assistant (CNA), all of which can be provided by a home care agency such as Genesis Home Care. If you need actual medical assistance then you may want to search for a higher level of care such as a Registered Nurse (RN).

Home care assistance is very flexible. You can get it for a few hours a day/couple times a week or maximize it to daily live-ins if that is a better fit for your needs. All in all, home care assistance is to provide two primary functions 1. Lower the out of pocket expense for families. 2. Allow for individuals to age in the comfort of their homes. So lets get to it!

There are eight different ways to pay for home health care.

Long Term Care Insurance

This is insurance so it can have some fine print to it. Some are as cut and dry as the title sounds at face value, others may not be. There are policies that cover in home care, as long as the home care agency is certified. Also, be careful to decipher if your LTCI doesn’t require an additional requirement of your loved one’s health needs being so serious as to require a nurse practitioner and not just a PCA, HHA or CNA. Timing is very important with this one. Insurance companies may deem it to late for someone to purchase LTCI policy. If that is the case… start thinking about your own plans for the future.

Life Insurance

If there is a life insurance policy that is no longer needed you can consider selling the policy back to the insurance company, usually for 50-75 percent of its value (determined based on the amount of the policy, the monthly premiums and the policy holders age and health). There may also be restrictions such as the policy holder needing to be terminally ill.

If that isn’t possible, you may be able to sell the policy for a “senior settlement” in which the settler pays the premiums until the policy holder dies, they then receive the benefit that would have gone to the original beneficiaries of any Will and proceeds. So there are most definitely things to consider.

Veterans Benefits

This applies to veterans only, and you will need to be assertive if not aggressive to finally get it. Vets that have served at least 90 days of active duty with one day during a wartime period, and received an honorable discharge is eligible for the Vets Pension and may be entitled to monthly disability payments, known as — “aid and attendance”.

The Veterans Affairs is a complex system and will require documentation from a doctor, and they will grade the vet with a rating system to determine how disabled your loved one is. Once the care is established the benefits can be well worth the hassle and will carry on until end of life.

You can get help from Veteran Service Organizations (VSOs) click here to find a variety of services for veterans. These services aren’t allowed to charge so beware of fraudulent activity.

Reverse Mortgage

This is an idea orchestrated by the government in order to help seniors and widows stay in their homes until the end of life.

The way this works it that your home has to have equity, your loved one has to be a minimum of 62, either own the home or have very little debt left on the balance. You can then take that equity as a lump cash sum or in monthly payments. However, it is not free money at all. The original loan holder must be paid back before the payments are made on the reverse mortgage. The loan balance increases over time and the home must be sold to pay off the loan balance. So this is not a good option if you have a home thats been in the family for generations and you want to keep it.

Just like the veterans service organizations, there are scammers out there dealing with reverse mortgage loans- do your due diligence and read carefully what you are signing.

An Annuity

This is money invested at a fixed or variable interest rate and after an agreed upon maturation date you can begin making withdrawals. It is a nice way to turn savings (IRA) or a pension into a stream of income for a number or years. Also, this benefit isn’t considered an asset when applying for Medicaid, which is huge when it comes to qualifying for Medicaid. With the others make sure you are dealing with a reputable source.

Medicaid

Medicaid like Medicare is a social program designed to help those in need. You will have to qualify for this program through a financial test, which is extremely thorough and reaches back to the last five years, but if you do you may qualify for Medicaid services which could include a limited amount of home care services. You will have to find out your state rules but they all will cover acute short term in home care services.

The home care agency you choose must be a Medicaid certified home care agency. Often times Medicaid limits it to those whose condition is in such a state that they qualify for nursing home coverage. Which may fall under Longer-term care for chronic conditions.

Medicare

Medicare coverage is usually when your loved is being discharged from the hospital or a rehabilitation facility. It is not easy to receive financial assistance, and Medicare is no different and the rules and guidelines are strict. Like Medicaid, you must choose an agency that is Medicare certified and not have a family member or another care giver providing care for you. You will contract for a period of time to receive the skilled care and therapy but it is not indefinite it is tied to a certain period of recovery time.

A Bridge Loan

Elderlife Financial Services is a firm that specializes in helping families pay for senior care. This type of loan serves as a temporary loan for up to a year until a more long term solution can be covered by the family. They allow up to six family or friend members to join in on the loan. This is great when you know there is a plan in place but it has not developed yet and you need a loan to fill the gap until the other plan come to fruition. Such as waiting for veteran benefits to be finalized or waiting for a house to sell. It can be used for in home care, assisted living communities, or other senior care.

Besides those eight methods you also have the choice of family pulling together and making the hard possible. Making agreements between the family about these new responsibilities; Who in the family can do what? Can the family collectively pay one member of the family to care for the loved on to help offset their lost wages?

Lastly, here is a list of local Georgia area supportive services.

Disclaimer: This article is intended as a friendly reminder with recommendations. It is not medical advise, direction or prescription of any sort. Please refer to professional services for any health related questions, concerns and relief.