Planning For The Costs Of Senior Care

Pre-planning for senior care costs is a necessity. Frequently, people wait until a crisis or major health issue to begin care planning. This can lead to hasty decision-making that may cause more harm than good in the long-run. Taking the time to sit down with a senior and discuss care options along with legal documentation like a will is the best option. When talking about care options, conduct research. Some individuals may need a home health aide, outpatient services, or short-term care, depending on the person’s medical condition.

Looking at financial options

Any form of care, whether short-term or long-term, will cost money. For many senior citizens, care will be an out-of-pocket expense paid for by the senior citizen or the family. To prepare for this, many elderly patients have retirement funds or savings accounts. Other forms of payment include government-sponsored programs.

Medicare and Medicaid

Medicare is a government-funded insurance program for senior citizens over the age of 65. Medicare covers medical costs for senior citizens and may pay for short-term care costs. For example, Medicare covers costs for short nursing home stays after a medical procedure or hospice care for the last 6 months of life.
Medicaid is for low-income individuals and families. Medicaid may cover long-term care for eligible participants. Some senior citizens qualify for both Medicare and Medicaid. In these instances, healthcare costs are split between both insurances and Medicaid pays first.

SSDI and other government programs

Social security disability income (SSDI) is available to people aged 65 and under who are unable to work due to a chronic disability. Many people that receive SSDI will need long-term care eventually. Recipients can use SSDI to cover care costs and other living expenses.
Many states have created programs to help elderly or disabled individuals pay for care or find adequate resources. PACE, the program for all-inclusive care for the elderly, is a state-sponsored program that uses Medicare funds to cover care costs. In addition to long-term care, PACE also covers home care costs for eligible participants.

State Health Insurance Assistance Program (SHIP) and the Department of Veteran Affairs (VA)

SHIP helps people with state-sponsored insurance like Medicare and Medicaid find alternative resources. One of these resources is Medigap. Medigap is private insurance that supplements Medicare. Depending on the person’s policy, Medigap covers certain expenses that Medicare doesn’t.
The U.S. Department of Veteran Affairs covers healthcare and short- or long-term care costs for veterans that have served in the armed forces. To learn more about these services, contact the Veterans Health Administration.

Who else can I talk to about care costs?

Medical professionals can offer a wealth of information regarding care options and even costs for short- or long-term care. Speaking to a healthcare professional, especially one that works closely with the elderly will help families with senior citizens plan accordingly. Consider scheduling a consultation with a healthcare provider or administrator.