Some average costs for long-term care in the United States (in 2010) were: $205 per day or $6,235 per month for a semi-private room in a nursing home. $229 per day or $6,965 per month for a private room in a nursing home. $3,293 per month for care in an assisted living facility (for a one-bedroom unit)
There are many ways you can pay for nursing home care. Most
people who enter nursing homes begin by paying for their care
out-of-pocket. As you use your resources (like bank accounts and
stocks) over a period of time, you may eventually become eligible
Medicare generally doesn't cover long-term care stays (room and board) in a nursing home. Also, nursing home care isn't covered by many types of health insurance. However, don't drop your health care coverage (including Medicare) if you're in a nursing home. Even if it doesn't cover nursing home care, you'll need health coverage for hospital care, doctor services, and medical supplies while you're in the nursing home.
Ways to Pay for Nursing Home Care
Personal resources - You can use your personal money and savings to pay for nursing home care. Some insurance companies let you use your life insurance policy to pay for long-term care. Ask your insurance agent how this works.
Your home - The state can't put a lien on your home if there's a reasonable chance you'll return home after getting nursing home care or if you have a spouse or dependents living there. This means they can't take, sell, or hold your property to recover benefits that are correctly paid for nursing home care while you're living in a nursing home in this circumstance.
In most cases, after a person
who gets Medicaid nursing home benefits passes away, the state
must try to get whatever benefits it paid for that person back
from their estate.
However, they can't recover on a lien against the person's home if it's the residence of the person's spouse, brother or sister (who has an equity interest and was residing in the home at least one year prior to the nursing home admission), or a blind or disabled child or a child under the age of 21 in the family.
insurance - This type of private insurance policy can help pay for many types
of long-term care, including both skilled and non-skilled care.
care insurance can vary widely. Some policies may cover only
nursing home care. Others may include coverage for a whole range
of services, like adult day care, assisted living, medical
equipment, and informal home care.
If you have long-term care insurance, check your policy or call the insurance company to find out if the care you need is covered. If you're shopping for long-term care insurance, find out which types of long-term care services and facilities the different policies cover. Also, check to see if your coverage could be limited because of a pre-existing condition. Make sure you buy from a reliable company that's licensed in your state.
Federal employees, members of the uniformed services, retirees, their spouses, and other qualified relatives may be able to buy long-term care insurance at discounted group rates.
Help from Your State (Medicaid)
If you qualify for Medicaid, you may be able to get help to pay
for nursing home care costs. Not all nursing homes accept Medicaid
payment. Check with the nursing home to see if it accepts people with
Medicaid, and if it has a Medicaid bed available. You may be
eligible for Medicaid coverage in a nursing home even if you
haven't qualified for other Medicaid services in the past.
Sometimes you won't be eligible for Medicaid until you've spent some of your personal resources on medical care. You may be moved to another room in the Medicaid-certified section of the nursing home when your care is paid by Medicaid. To get more information on Medicaid eligibility requirements in your state, call your Medicaid office.
You may have to pay out-of-pocket for nursing home care each month. The nursing home will bill Medicaid for the rest of the amount. How much you owe depends on your income and deductions.
Most people who are eligible for Medicaid have to reduce their
assets first. There are rules about what's counted as an asset and
what isn't when determining Medicaid eligibility. There are also
rules that require states to allow married couples to protect a
certain amount of assets and income when one of them is in an
institution (like a nursing home) and one isn't.
A spouse who isnít in an institution may keep half of the coupleís joint assets, up to a maximum of $119,220 in 2015, as well as a monthly income allowance. For more information, call your Medicaid office. You can also call your local Area Agency on Aging to find out if your state has any legal services where you could get more information.
Transfers for less than fair market value may subject you to a penalty that Medicaid wonít pay for your nursing home care for a period of time. How long the period is depends on the value of the assets you gave away. There are limited exceptions to this, especially if you have a spouse, or a blind or disabled child. Generally, giving away your assets can result in no payment for your nursing home care, sometimes for months or even years.
NOTE: Federal law protects spouses of nursing home residents from losing all of their income and assets to pay for nursing home care for their spouse. When one member of a couple enters a nursing home and applies for Medicaid, his or her eligibility is determined under "spousal impoverishment" rules.
Spousal impoverishment helps make sure that the spouse still at
home will have the money needed to pay for living expenses by
protecting a certain amount of the couple's resources, as well as
at least a portion of the nursing home resident's income, for the
use of the spouse who is still at home. For more information, call
your Medicaid office.
Applying for Medicaid
To apply for Medicaid, call your Medicaid office. They can tell you if you qualify for the Medicaid nursing home benefit or other programs, such as the Programs of All-Inclusive Care for the Elderly (PACE), or home and community-based waiver programs. Get more information on Medicaid
Additional Nursing and Long-Term Care Resources
Elder Options of Texas
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DISCLAIMER: Links to other websites or references to products, services or publications do not imply the endorsement or approval of such websites, products, services or publications by Elder Options of Texas. The determination of the need for senior care services and the choice of a facility is an extremely important decision. Please make your own independent investigation.