Paying for Senior Living
Use the chart below to match the type of care you are looking for with the how it is typically paid. More detailed information about each type of care and how it is paid is listed below.
Understanding the payment options for senior care is very confusing. When you are shopping for care, understanding what services and amenities are offered and what payment covers them is often key in making your decision on senior care. When looking at your options for senior housing and trying to match that with the financial capabilities, many questions arise:
- Why does Medicaid cover the more expensive option of long term care but doesn’t cover the more cost-effective option of Assisted Living?
- Does Medicare cover care for a person who has Alzheimer’s disease and needs to move to a nursing home to be safe?
- What is considered skilled care and what is custodial care?
These are just a few of the many questions our Senior Care Advisors receive from families every day. If you are unsure about what level of care you or your loved one requires, or if you have any further questions about paying for all of the different types of care, call SeniorLiving.Net at (866) 510-9738 to speak with your local Care Advisor.
Assisted living is typically paid for from private funds, but there are a few exceptions. Veterans and their spouses are often entitled to some form of VA benefit to help pay for assisted living. Some long-term care insurance policies cover licensed assisted living communities as well. Check your loved one’s insurance policy to see if it is covered. In a limited number of states, Medicaid funds and waivers are available to help with assisted living costs.
Call (866) 510-9738to speak to your local Care Advisor to learn more about assisted living pricing in your area.
For memory care in an assisted living community, fees are typically paid for from private funds. There are a few exceptions. Some long-term care insurance policies cover licensed assisted living communities, and in a few states, Medicaid funds are available to help with assisted living costs. Reimbursement for dementia care in a nursing home is either from private funds, long-term care insurance or Medicaid.
Call (866) 510-9738 to speak to your local Care Advisor to learn more about memory care pricing in your area.
Most often, independent living is paid for from private funds. In some instances, communities are subsidized by different state and federal programs and those communities are able to offer fees at a sliding scale based on income. Your local Area Agency on Aging typically maintains a list of subsidized senior housing and entrance requirements.
Call (866) 510-9738 to speak to your local Care Advisor to learn more about independent living pricing in your area.
The most common way Continuing Care Retirement Communities (CCRC) are paid for is by private funds. However, understanding the contracts, fees and payment structure for a CCRC can be very confusing. Some CCRCs also require a non-refundable entrance fee or an equity payment, while others don’t require these fees or make them refundable. Some communities accept Medicaid for their assisted living care (depending upon the state) and for their long-term care, yet others do not. Most CCRCs have a short-term rehab program that is Medicare certified. See our Tips and Checklists for a better understanding of what to look for and what to ask a CCRC with regard to payment and fees.
Call (866) 510-9738 to speak to your local Care Advisor to learn more about CCRC pricing in your area.
If a client is receiving skilled nursing and/or therapy services, Medicare (or their private health insurance) may pay for home health services on a short-term basis. Medicare requires the patient to be home-bound and under the care of their physician. The agency must be Medicare certified. When clients are receiving private duty or homemaker services, private funds are typically the source of payment. Some area agencies on aging have funds that assist with payment, and long-term care insurance policies sometimes cover this as well. If your family member was a veteran or spouse of a veteran, they may also be entitled to VA Benefits.
Adult day care services are typically from private funds. Your local agency on aging may have funds available to help families with this type of care. In addition, some long-term care insurance covers adult day care. For clients with more intensive medical needs, Medicare part B (or their health insurance) may help cover skilled services and therapies. You should also check with your tax advisor to see if the care you provide to a family member or loved one meets the criteria for Dependent Care Tax credits. Again, if your family member was a veteran or spouse of a veteran, check with their VA Advisor to see if they will help with the cost of care.
Reimbursement for nursing home patients and residents is a bit complex. If a patient is there just for a short-term rehabilitation stay, Medicare and/or private insurance typically covers the stay. If the patient continues to meet what is known as the “skilled criteria” during their rehab stay, Medicare covers 100% of the charges for the first twenty days and 80% of the charges for the following 80 days. If a patient has a secondary insurance, it often covers the 20% of charges that is not covered by Medicare.
For long-term care residents, private funds, Medicaid, and long-term care insurance are the typical methods of payment. If the patient was a veteran or spouse of a veteran, they may have VA benefits that will help with a portion of their stay.
Still unsure about what type of care is right for you and how you are going to be able to pay for that care?
Call your local Care Advisor to help you narrow down your choices. Call (866) 510-9738 to speak to a Care Advisor in your area that will help you find the best senior living community within your budget.