Care
Cost of Care
Cost of Care
Averages pulled from NCOA as of June 2024.
On average, rent usually increases between 4-10% annually; as well as when level of care increases.
National Averages:
Assisted Living - $4,500 per month
Or $54,000 per year.
Memory Care - $6,100 per month
Or $73,200 per year.
Skilled Nursing (Shared Room) - $7,900 per month
Or $94,800 per year.
For a private room, average rent is $9,000 per month or $108,000 per year.
In-Home non-Clinical Services - $38 per hour
Example: 4 hours of care, three days a week – Averages $1,980 per month or $23,700 per year.
4 hours of care every day – Averages $4,600 per month or $55,300 per year.
Common Payment Options
Private Pay
This is where your Financial Plan is critical.
This option is available for every family when looking at a long-term care solution. However, not every family can afford this option financially. With the average costs listed above, you are able to get an idea of what the financial cost would be each month. If you do not have the financial resources to pay out of pocket, you must look at other options.
Medicare
All Seniors are eligible for Medicare.
Medicare Part A pays for Hospitalization and there is no cost to the Senior. Hospitals are not a long-term care option. Medicare Part B does pay for Home Health Services which include visits by nurses during recuperation from surgery or hospitalization. Part B does have a co-pay that the senior does pay, however, Part B is not an option for a long-term care solution.
Another potential benefit that can help you is the new CMS GUIDE Program. This is an 8-Year program that provides care management Services along with funding for Respite Care for any person who has been diagnosed with Dementia. This innovative program will pay a monthly fee to care management companies and up to $2,500 towards respite care for the family caregiver.
Medicaid
Seniors must qualify for Medicaid in your state.
You can qualify based on your household income or if you have been diagnosed with a disability. You can talk with your case manager under your Medicaid program to ask about an assessment to see if they will assign your Personal Care Services. If they agree to assign services to you, they will provide you with how many hours a week they will provide you with along with the Provider who service you.
Medicare Advantage
Medicare Part C or Medicare Advantage does provide Home Health Services and many plans provide funding for Personal Care Services in the Home. To take advantage of these Personal Care Services, you must request this benefit from the supplemental benefit portion of your Plan. Depending on the Plan, this option could play a role in a long-term care solution.
Veteran’s Benefit
The Veteran’s Administration (VA) provides a very viable option to pay for long-term care options. There are two programs which you can apply for. One is for the actual Veteran who served, and the other is for the spouse or dependents. The program for the Veteran does not have an income threshold to qualify for the benefit. For the Veteran, this will provide the bulk of the Personal Care Services needed to age in place.
Under the program for the Spouse or Dependents, the VA does provide funding for those families that qualify under the income threshold. This funding is very helpful in paying for a good portion of funding necessary for long-term care. If you are a Veteran or a family member, reach out to your local VA case manager to learn more about the programs and the application process.
Long-Term Care Insurance
This insurance is very helpful in funding long term care options. If you have already purchased this plan, congratulations. When you are evaluating your long-term options, you should reach out to the insurance company to understand the benefits you are eligible for as well as the process to request them. If you don’t have a policy, you can see what policies are available by checking out the website. The younger you purchase an insurance policy, the more affordable the policy will be. However, those that have this insurance policy will have the most options they can pick for their long-term care options.
Reverse Mortgage
Is a financial product, allowing homeowners, aged 62 and older, to utilize a portion of their home equity to pay for care.
Different than a regular mortgage, with this financial vehicle the lender pays the homeowner. The cash from a Reverse Mortgage can typically pay for care in the home. In addition, as long as one remains in the home, the funds may be used to pay for the others care in an Assisted Living or Memory Care Community.
Other Options To Review
Life Insurance Policy
Many outgrow the usefulness of their life insurance policy. Believing their only options are to let the policy lapse or surrender it to the insurance company, there is an alternative. You can turn your policy into cash, to pay for care, with a life settlement. You must be 65 years and older and have a life insurance policy of $100,000 or more.
Nuclear Care Partners
More than 600,000 former atomic workers across the United States may qualify for up to $400,000 in financial compensation, plus no cost medical benefits for life through the Department of Labor. Teams are based across the country in 22 States and can help you determine your eligibility and next steps.
Compensation Payment Programs—For Holocaust Survivors
The Claims Conference administers direct payment programs to certain eligible Holocaust victims in accordance with German government guidelines pertaining to persecution experience and current residence. If you need assistance to apply, please contact the Claims Conference, you may do so without any fee.