How am I going to afford assisted living or home care?

Author

Ruby Care Senior Living Advisors

Posted on

Mar 28, 2023

Book/Edition

Texas - Dallas, Collin, SE Denton & Rockwall Counties

How am I Going to Afford Assisted Living or Home Care When I Need It?

Working with many seniors and families over the years from many different backgrounds and socioeconomic situations, makes this a somewhat scary and serious topic for many.  Will I have enough money to afford care? I don’t want to be a burden on my family. I planned to stay in my home till I die. Social Security and Medicare should cover my costs for care, right?  Let’s talk about the costs, misconceptions, and options for paying for Assisted Living and Home Care. Knowing what to plan for and expect before you need it will provide peace of mind for not only you.

Cost of Home Care and Assisted Living

Let’s start by talking about the big elephant in the room.  The need for a caregiver, Assisted Living, and Memory Care is expensive!  The average in Home Caregiver charges $25-$35/hr., which can up quickly. Once one needs 24/7 it can be upwards of $18,000/mo.+ for a private caregiver. This is where Senior Assisted Living and Memory Care Communities can provide 24/7 care needed in a safe environment at a more affordable rate, typically ranging from around $4,000-$9,000/mo. in the DFW area depending on the location, community, type of room and level of care needed. When one ages significantly or has a medical condition that warrants care, many find that they are not fully prepared for the care that may be necessary long-term. 

Medicare Misconception

We often hear the question: “I have Medicare and a supplemental insurance. Doesn’t that cover the care I need?”  This is a common misconception.  While Medicare and supplemental insurance like AARP cover your medical needs in the hospital, rehab, and Home Health (Physical Therapy, Occupational Therapy, Speech Therapy), it does not cover Home Care/Caregiving Assistance which provides the individual assistance needed for Activities of Daily Living (ADL). ADLs include things like bathing, dressing, grooming, toileting, meal preparation, feeding, etc. 

Payment Options

There are several options available when looking at paying for Senior Living and caregiving expenses: How to Pay for Assisted Living: 10 Ways to Cover the Costs (seniorht.com)

1.     Personal Savings – Savings and Investments put aside for retirement.

2.     Social Security Income – Income and retirement $

3.     Pension Plans & Retirement Benefits – Company pensions and retirement benefits are great resources to have.

4.     Long-Term Care Insurance (LTC) – These plans are costly but are designed to cover the costs of Assisted Living and when ADL assistance is needed.  There are many different types of LTC plans. Make sure to look over carefully and read the fine print when choosing the right one for you. 

5.     Veteran’s Benefits – If one qualifies for veteran’s benefits and meets the criteria for pension and/or aid and attendance can receive financial assistance.  You may be able to even receive care in a VA Medical Facility or “VA Facility”, but the challenge many faces is that they are already full due to overwhelming demand. There is often a waiting list to get in. 

6.     Medicare – Covers 100% of the cost of care up to 20 days at a skilled nursing facility and approximately 80% of the cost up to 80 more days. This care must be after an overnight inpatient hospital stay and for recovery. Cost of room and board or personal care in assisted living is not covered, but it will pay for the medical costs, such as physical therapy, incurred while in assisted living. So, this is important to understand when looking at needs for ongoing care.

7.     Medicaid – This would be for those that have spent down or do not have significant assets and income of no more than $2k/mo. This happens to more than you realize as the assets and saved retirement $ is gone and one has only Social Security. Note there is a shortage of Medicaid beds, and one must need skilled nursing in addition to low income to even qualify.

8.     Supplemental Security Income - Anyone can apply for SSI and there is no charge. Check out if you’re eligible through an online screening you can find at https://ssabest.benefits.gov/.  Different states have different rules, and the amount is nominal but can still be beneficial to check.

9.     Reverse Mortgage – This option allows seniors to borrow against the equity in their home. This works great if one is able to/wants to stay in their home but can present a significant challenge when care needs become too great, and a transition is needed. 

10.  Life Insurance Policy – This is a not so commonly known resource that could be available to help pay for Senior Living costs.  Note that these options would potentially reduce or eliminate any payout or benefit to beneficiaries once the policy holder dies.

a.     Some policies have a living benefit options (accelerated death benefit), that allows the policyholder to take a portion of their death benefit early when they have a terminal illness or serious chronic illness. 

b.     Sell Your Life Insurance Policy – Many policies can be sold to a life settlement company for a lump sum that can be used toward senior living and care expenses.

No matter how you decide to plan and pay for your “Golden Years” in retirement, talking with a financial planner, estate/elder law attorney, and having those discussions with trusted family members is recommended. Knowing what to plan for and expect before you need it will provide peace of mind for not only you, but for your loved ones too.  Ruby Care Senior Living Advisors has helped countless families transition into Senior Living Communities throughout DFW with our personalized complementary services that aid families in finding a community that is a right fit based on budgetary, care, family, and geographic needs. We are passionate about helping seniors and their families navigate the overwhelming options and choices when it comes to senior living and ensure the best care, environment, resources, and quality of life for you and/or your loved one. 

 Britt Hemsell – Ruby Care Senior Living Advisor & Blog Contributor

Resources: 

Senior Home Transitions  https://seniorht.com/pay-assisted-living/

Veteran’s Services Offices

Collin County - https://www.collincountytx.gov/veterans

Tarrant County - https://www.tarrantcounty.com/en/veteran-services.html

Dallas County - https://www.dallascounty.org/departments/veteran-services

 

Other Articles You May Like

Exploring Assisted Living; A Guide to Its Inner Workings

Assisted living has gained popularity among adults looking for a blend of independence and care. Having a grasp of how assisted living functions can empower individuals and families to make informed choices regarding this form of support. This article will explain the elements of assisted living covering the services provided the financial structure and how Seniors Blue Book can act as a valuable resource for exploring assisted living options. Defining Assisted LivingAssisted living serves as a choice for seniors requiring some aid with activities but desiring to uphold their independence. These facilities offer a nurturing setting with access to care services, social engagements and amenities aimed at enriching residents lives.Range of ServicesAssisted living communities deliver an array of services customized to cater to residents specific needs. These services may include:  Personal Care Assistance; Support with activities like bathing, dressing, grooming and toileting. Medication Management; Assistance with medication schedules and administration. Healthcare Oversight; Health monitoring and coordination of care. Dining Services; Well balanced meals prepared on site along with provisions, for dietary preferences or restrictions.Housekeeping and Laundry; We offer housekeeping and laundry services to ensure your living space stays clean and comfortable. Social and Recreational Activities; Enjoy a variety of activities and outings that focus on socializing staying active and keeping your mind engaged.Transportation Services; We provide scheduled transportation, for appointments shopping trips and outings to make sure you can get where you need to go.24 Hour Staff Availability; Our staff is available around the clock for emergencies. Any assistance you may require. Cost StructureThe cost of assisted living can vary based on factors like location, size of living quarters and the level of care needed. Typically the cost covers room and board care services as amenities. Some places might have pricing tiers depending on the residents care needs.How Assisted Living Works (example community) Assessment; Before moving in residents undergo an assessment to understand their care needs and preferences. This helps us create a care plan for each resident.Move In; Once the assessment is done and a care plan is in place residents can move into our facility. Each resident usually has their semi private space, within our community.Care Services; Our facility provides the care services outlined in each residents personalized care plan. Staff members are always, on hand to assist residents with whatever they need.Social Activities; Assisted living communities provide a range of events and services to keep residents engaged and active. These activities might include group outings, fitness classes and arts and crafts sessions.Health Monitoring; Assisted living facilities keep track of residents health status and organize care as required. This could involve check ups, managing medications. Helping with doctor appointments.Family Engagement; Families are encouraged to participate in the care of their loved ones at assisted living facilities. Many places offer opportunities for families to visit and join in activities with the residents. How Seniors Blue Book Can Be HelpfulSeniors Blue Book serves as a resource guide for individuals and families exploring living options. Here's how Seniors Blue Book can be beneficial:Detailed Directory; Seniors Blue Book provides a listing of living facilities offering detailed information, about services, amenities, pricing and contact details. This resource can assist individuals and families in finding a facility that suits their needs and budget. We currently have 28 Seniors Blue Book markets with custom editions (semi-annual or annual). Expert Advice; Seniors Blue Book offers expert advice and resources to help individuals and families navigate the process of selecting an assisted living facility. Their team of professionals can offer recommendations based on preferences and requirements.Seniors Blue Book provides materials and articles covering aspects of assisted living, such, as caregiving, legal and financial planning and the transition to assisted living. These resources are valuable for individuals and families seeking guidance in making informed choices regarding living care.**To sum up, assisted living is a housing alternative for seniors requiring some support with activities while aiming to retain their independence. Assisted living communities offer a variety of services and amenities to improve residents quality of life. Seniors Blue Book serves as a resource tool offering information and assistance to aid individuals and families in navigating the selection process for an assisted living facility.

Finding Ways to Pay for Assisted Living When Money is Tight; Innovative Solutions and Support

With the increasing expenses associated with living many people and families are confronted with the challenge of financing care when financial resources are scarce. Luckily there exist a range of solutions and support systems to assist in meeting the costs of assisted living for individuals, with limited funds. This article discusses different avenues for financing assisted living during times of constraint & highlights how Seniors Blue Book can be a valuable guide throughout this process.1. MedicaidMedicaid is a program funded by both state and federal governments that offers health coverage to individuals with incomes including coverage for long term care services like assisted living. Eligibility criteria vary by state. Generally, Medicaid requires individuals to meet income and asset thresholds to qualify for coverage of assisted living services.2. Veterans BenefitsThe U.S. Department of Veterans Affairs (VA) provides benefits to veterans and their spouses, which can help offset the expenses associated with assisted living. Programs such as the Aid and Attendance benefit aim to offer aid to veterans in need of assistance, with activities.Social Security benefits and SSI payments can provide assistance to individuals, with resources. While they may not cover the cost of living they can help alleviate some of the expenses. 3. Long Term Care Insurance Long term care insurance is specifically designed to help with the expenses associated with long term care services, such as those provided in senior living facilities. Individuals who hold insurance policies may use them to offset the costs of assisted living depending on the policy terms. Certain states offer Medicaid waiver programs that allow individuals who would otherwise need nursing home care to receive services in assisted living communities instead. These programs often have income and asset requirements. 4. Share Living If available, sharing a living residence with a roommate can be a cost option for both parties. Many facilities provide roommate matching services to help residents find roommates and reduce expenses.Seniors Blue Book serves as a resource guide for individuals and families exploring options, for assisted living arrangements. Seniors Blue Book provides a list of assisted living facilities along, with expert advice and educational materials to assist individuals and families in navigating the process of financing care for assisted living. In summary financing assisted living can pose challenges when funds are limited. There are options available to assist in covering the expenses. From Medicaid and veterans benefits to long term care insurance and shared living arrangements, there are solutions for those looking to finance assisted living without funds. Seniors Blue Book serves as a resource offering a plethora of information and assistance to help individuals and families discover the assisted living solution, for their requirements.To explore local assisted living options, their cost, services, and accommodations, please visit: https://seniorsbluebook.com/senior-housing

A Guide to Understanding Medicares Role in Assisted Living Expenses

As people grow older and require assistance with tasks the issue of financing assisted living often comes up. Many seniors turn to Medicare, the government health insurance program for those aged 65 and above for help. However Medicare's coverage for living is limited so knowing what expenses are included and excluded can assist individuals and families in planning for their care needs. This article discusses Medicare's coverage of assisted living financial options for supporting care and how Seniors Blue Book can be a helpful tool throughout this process.Does Medicare Assist with Assisted Living Costs?In cases Medicare does not cover the expenses associated with living facilities. Medicare Part A, which handles hospital stays and skilled nursing facility care typically does not include costs related to assisted living. Likewise Medicare Part B, which deals with outpatient services also does not encompass living expenses.What Services Does Medicare Include?While Medicare may not cover the costs of residing in an assisted living facility itself, it might cover services offered within such facilities.For instance if a person residing in a living facility needs nursing care or therapy services Medicare could potentially cover these services if they are offered by a provider certified by Medicare. Exploring Ways to Fund Assisted LivingGiven that Medicare does not include assisted living costs, individuals and families must consider ways to finance assisted living care. Some common alternatives are:Term Care Insurance; This type of insurance is specifically designed to cover expenses related to assisted living and other long term care services. Policies differ in coverage and cost so its crucial to review the terms.Medicaid; Medicaid is a program run by the government and states that offers health coverage to individuals, with low income and limited resources. For those who qualify Medicaid might cover some or all of the expenses associated with assisted living.Veterans Benefits; Veterans and their spouses may be entitled to benefits, from the U.S. Department of Veterans Affairs (VA) to assist with paying for assisted living. The benefits available depend on the individuals service history and other factors.Personal Savings and Investments; Some individuals may opt to use savings, investments or assets as a means of financing their assisted living care. It's important to consider the term financial implications before choosing this option. How Seniors Blue Book Can Help!Seniors Bluebook serves as a tool for individuals and families looking into assisted living options. Here's how Seniors Bluebook can be beneficial:Extensive Directory; Seniors Blue Book provides a directory of assisted living facilities offering information on services, amenities, pricing and contact details. This directory aids in finding a facility that aligns with ones requirements and budget.Professional Assistance; The team at Seniors Blue Book offers expert guidance and resources to help navigate the complexities of assisted living care. They offer tailored recommendations based on needs and preferences.Educational Support; Seniors Blue Book also offers materials and articles covering aspects of assisted living such as financial planning, legal considerations and caregiver support. These resources empower individuals and families to make informed decisions regarding living care. In summary, although Medicare may not cover assisted living costs, there are financial options available. Seniors Blue Book stands out as a resource, with its directory, expert advice and educational content to assist in selecting the right assisted living facility.

Local Services By This Author

Ruby Care Senior Living Advisors

Housing Placement & Resource Specialists 5960 West Parker Rd Ste 278-215, Plano, Texas, 75093

When Its Time for Senior Living, We Help You Find the Perfect Community for You! With over 900 senior living options in the DFW area, Ruby Care helps families make informed decisions. We provide complimentary assistance to find the most appropriate living community including Indepenent Living, Assisted Living, Residential Care Homes, Memory Care & Nursing Home. Our ExperienceIf you've been searching for senior housing for you or your loved one, you know there are hundreds of senior living communities in the Dallas/Fort Worth area.  Let Ruby Care help you.  We do the legwork at no cost to you and help you find the place that is perfect for you and your family.Our professionals are well-known in the communities they serve.  In order to help you best, they network with health care providers, such as home health, hospice, rehabilitation facilities, hospitals, physicians and other senior service providers.Collectively, our team has over 50 years of experience in healthcare and we are trained to listen to your needs so that we can work to find the best options for you...at no cost! Why Us?We know this can be a stressful time for you as you choose your next  home.  When you work with us, you will be assigned a Senior Living  Advisor (SLA) who knows the community and has first-hand knowledge of  the communities you are considering.  Your SLA will meet with you in person and will listen to your wishes, wants and needs in order to help guide  your next steps.  Your SLA will also help you with senior living community tours and  preparation to help guide you through the selection process.  We serve as your advocate and help make this a smooth, seamless transition.  Once you have selected a community, we continue to follow up for at least the next thirty days to make sure things are going well and there are no outstanding concerns. possibilities.  placement.  peace of mind.