How to Pay for Nursing Home Care
Because of the rising costs, it’s important to know how to pay for nursing homes. There are a variety of ways to cover the costs and it’s imperative to plan. To prepare for the possibility of needing a nursing home, you may want to consider purchasing long-term care plans.
While it’s tough to think about needing long-term care when you are in your 40s or 50s, it is less expensive to buy at that age than as you get older. Fifty-two percent of people 65 and older will need some type of long-term care; consequently, it’s imperative to know how to pay for a nursing home so that you don’t find yourself in a bind when or if the time comes that you need it.
Using Private Insurance to Pay for Nursing Home Care
Most private health insurance plans don’t cover long-term care facilities like nursing homes. However, you can purchase long-term insurance plans that will cover some of their costs. Long-term insurance plans offer coverage that health-care plans –– Medicare or Medicaid –– don’t normally cover.
It’s important to note that long-term care insurance is not an investment like life insurance and it’s a use-or-lose type of coverage. That means, if you don’t end up needing long-term care, you aren’t guaranteed the money, but it is a way to have a sense of security that you or your loved one will be able to afford a nursing home in the event it’s necessary.
When it comes to the cost of long-term insurance, it costs approximately $3,400 a year, which comes out to $283 a month.
Does the VA Pay for Nursing Home Care?
Veterans have access to various long-term assistance plans, including help with covering nursing home costs. Some of the care services offered to sick or disabled vets are 24/7 nursing and medical care, help with activities of daily living, pain management care, comfort care, and physical therapy.
To qualify for these services, veterans must be signed up for VA health care. The Department of Veterans Affairs determines if the veteran needs the services and determines if they are offered in the area the veteran lives. It’s also important to note that the services provided can either be given in a setting run by the VA, a setting run by the state, or a pre-approved community organization.
Does Medicaid Pay for Nursing Homes?
The simple answer to whether or not Medicaid pays for nursing homes is yes. Even though Medicaid does pay for nursing homes, it only pays for those people who require this level of care and meets the program’s financial requirements. Additionally, for Medicaid to cover nursing home bills, the recipient of the coverage must give up basically all their income. Finally, it’s important to note Medicaid’s daily rate so you don’t have to worry about paying out of pocket.
Which Nursing Home Costs Does Medicaid Cover?
Medicaid tends to cover all nursing home costs. The reason for this is that nursing homes don’t usually itemize services in the same way as assisted living facilities. Therefore, the cost of medical care and medical supplies, as well as the cost of room, meals, and assistance with activities of daily living are usually included in the daily rate provided by Medicaid.
Does Medicare Pay for Nursing Homes?
Unlike Medicaid, Medicare doesn’t usually cover the cost of long-term nursing home care. And Medicare doesn’t cover any of the activities of daily living such as meal plans, room and board, and housekeeping. That being said, some supplemental insurance plans can help bridge the gap between what Medicare will cover and what individuals need.
How Long Does Medicare Pay for Nursing Homes?
Medicare will pay for a nursing home for a little over three months — 100 days to be exact. The catch with this is that you must be admitted to the skilled nursing home facility within 30 days of leaving the hospital. Additionally, the reason for needing a nursing home stay must relate to the reason you were in the hospital. Otherwise, Medicare will not cover the stay.
How to Pay for Nursing Home Care With Social Security
You can pay for nursing home care with Social Security by having their office send payment directly to the care facility. Even though you can use this benefit to help with nursing home costs, it may not be enough. The average Social Security check is about $1,461 a month, which is nowhere near the average monthly cost of nursing home facilities.
How to Pay for a Nursing Home With No Money
Medicaid is available for those who need nursing home care but can’t afford it or have no money. If you or your loved one needs to move to a nursing home and have not qualified for Medicaid in the past, you should revisit the application process. While Medicaid can pay for 100 percent of nursing home costs, if you need a nursing home, your total assets will be brought into the equation to determine the level of funding you qualify for.
Does a Nursing Home Accept Your Pension and Social Security?
Those who live in nursing homes can have their pension or Social Security check put into a resident’s trust fund. But because senior identity theft is a big issue in the U.S., if you or your loved one is going pursuing this option, it’s important to note the amount of money you have in the resident’s account because there is the risk that nursing home employees could potentially steal from these accounts.
While some people can receive their pension or Social Security checks deposited in an account at the nursing home, others may no longer be eligible to continue receiving that income. For those who need to move into a nursing home and Medicaid is paying for part of the nursing home costs, your Social Security benefits may be terminated as a result.
