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Preparing for the Costs of Long-Term Care: Tips for Seniors

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Foreword:

The goal of Stay at Home Solutions is to do everything in our power to help you make changes in your home in order for you to live safely and independently for as long as you would like. However, the reality is sometimes “the best-laid plans of mice and men often go awry”, meaning that you can make as many changes as you would like to your home, but you may need 24 hour personal care that your family cannot help you with.

None of us like to think that we could end up in that situation. Since we are practical people, we like to share additional information on what else you can do to prepare yourself. Luckily, we found someone who enjoys helping people do the same.

Hazel Bridges is the creator of AgingWellness.org, a website that aims to provide health and wellness resources for aging seniors. She’s a breast cancer survivor and challenges herself and others to live life to the fullest. Hazel contributed the information below for you to make the best decisions for you!


Preparing for the Costs

of Long-Term Care: Tips for Seniors

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It’s important to plan for your long-term care needs even if you don't end up needing it. You can never be sure if an unexpected illness or accident will suddenly change your ability to care for yourself. Though Medicare is valuable to seniors, it provides little coverage for the extensive costs of long-term care. The best thing you can do is prepare for the possibility of long-term care while you’re still able to make important decisions and look into your funding options.

Know What Types of Costs to Expect:

There are three main options for long-term senior care: nursing homes, assisted living facilities, and in-home care. According to A Place for Mom, a private room in an assisted living center costs about $90 per day while a private room in a nursing home costs $205 per day for the more intensive levels of care. In-home care costs anywhere from $112 to $192 per day, depending on the amount of time that care is required. If you have family members that can step in and help out, you can cut out some of the costs of in-home care. If you’re looking for the most affordable facility options, consider a care center in a non-urban area rather than one in the city.

Understand What Medicare and Medicaid Cover:

Long-term care services include assistance with daily living tasks such as dressing, cleaning and eating. Although Medicare can help seniors out with their required medical services, it does not cover any other aspects of long-term care. For example, Medicare covers doctor's visits, prescription drugs and hospital stays. It may also pay for a portion of the costs for short-term care in a certified nursing facility following a hospital admission, which can be helpful if you just need to recover from an accidental injury. Other than this, the program does not help with personal or long-term care services.

Unlike Medicare, Medicaid can help you cover some of the costs of long-term care, but only if you are low-income with few assets. Medicaid does pay for long-term care services in nursing homes and at home. However, states have different eligibility requirements and differ according to which services they cover.

Consider Funding Long-Term Care Yourself:

Of course, you are welcome to self-fund your long-term care if you have the means. This is a great way to avoid paying expensive premiums for insurance and have the flexibility to put your money exactly where you need it. However, this is difficult to do unless you have substantial savings built up or assets that can be liquidated. Selling your home can be a viable option if both you and your partner are moving out of the house. Before you sell, make sure you're up to date on the current home sale trends in your area. For example, homes in Smithville, Missouri have sold for an average of $215,000 in the last month.

Know About Your Insurance Options:

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According to Mariner Wealth Advisors, there are two main types of long-term care insurance. These are the stand-alone policy and life insurance with an accelerated death benefit rider. Stand-alone long-term care insurance covers the expenses that aren’t taken care of by either Medicare or Medicaid. This includes assisted living, nursing homes, and at-home care. However, if you don’t end up needing care, you don’t get any benefits from the insurance. On the other hand, a death benefit rider on a life insurance policy allows you to receive benefits if you end up needing care while any unused benefits will be paid to your beneficiaries. This type of policy is more flexible but tends to have higher premiums.

Many Americans' greatest fear about aging is requiring long-term care and not being able to pay for it. This is no surprise since costs can get as high as $100,000 to $250,000. Although government programs can be valuable to seniors requiring medical services, it's important that you make alternate plans to pay for possible long-term care needs in your future.


Afterword:

Although planning long-term care has its benefits, this can be a difficult topic to discuss between family members. No one enjoys thinking about the possibility of needing long-term care in the future. It’s easy to put this topic on the back burner.

Some tips to make long-term care planning easier include:

  1. Reflecting on what you want if you needed long-term care

  2. Identifying family and social supports

  3. Organizing information you gather to help you make sense of everything

In my experience, families who do talk about long-term care planning do not appear as stressed or frantic when their loved one needs it. They know what to do, where to go, and how it’s being funded. Peace of mind comes with planning your long-term care needs. It’s a lot of work, but consider the process as a gift to you and your family!