Now that you've determined you need care for your loved one, how will you cover the costs associated with in-home care? We're here to help navigate you through this next step.
Because home care providers like Peace at Home Caregivers offer personal rather than medical care, most health insurance and Medicare programs do not cover the costs associated with this necessary service.
Common Ways to Pay for Non-Medical Home Care
- Savings & Pensions
- Long-Term Care Insurance
- Asset Conversion
- Veteran's Benefits
- Tax Credits & Cost of Care Reductions
Savings & Pensions
Most all non-medical care is paid for privately with either long term care insurance or personal/family savings. Often times Social Security benefits and private pensions are used, however the most immediate means of covering care expenses is often via savings.
Long Term Care Insurance
These days it is becoming commonplace for people to consider investing in long term care insurance in planning for their future needs. These plans help to pay for non-medical home care. Since individuals who require this type of care are not sick in the traditional sense, traditional health insurance, Medicare and Medicaid do not provided for their needs. All long term care insurance providers work differently, but, for the most part they require payments to be made by the client and once payment has been made they will reimburse the client directly.
There are several options for families to consider when looking for ways to help cover things like home care expenses. Among these are: reverse mortgages, home equity lines of credit, along with real estate-based asset conversion programs such as Rex Agreements and Equity Key. These programs provide seniors with financial solutions to their long-term home care needs. Additionally there are methods for converting life insurance policies to pay, such as: death benefit loans, life settlements, life care assurance benefits and viatical settlements.
The Veteran Aid & Attendance Pension program offers families and individuals an additional method of meeting home care costs. In the past, qualifying service members and their spouses, the A&A Pension has provided up to $1,632 per month to a veteran, $1,055 per month to a surviving spouse, or $1,949 per month to a couple. Please note that whether or not you or your family member qualifies for the A&A program, the VA allows households to deduct the annual cost of paying for in-home care when calculating their regular pension benefit.
Tax Credits & Cost of Care Reductions
There are numerous state and federal programs, initiatives and tax credits which can significantly lower your family's tax burden effectively reducing the overall cost of care. The following options are what we suggest you look into to find out if your family member qualifies: Federal Elderly Care Tax Credit, LIHEAP - Aid for Energy Costs, Medical Expense Tax Deductions, Alzheimer's Respite Care, Elderly & Disabled Tax Credit, NFCSP Respite Care, State Elderly Care Tax Credit, Veteran's Administration Respite Care.