Senior care costs can add up quickly and many families struggle to pay for the care their older adult needs. All Home Care Matters shares 7 ways to make paying for senior care more affordable.
Senior care is costly
As older generations age, their healthcare needs become more complex and costly.
According to Genworth’s most recent analysis of care costs, the national average cost of in-home care is around $5,200 per month.
On top of this, seniors who need memory care can expect an additional 20-30% in costs per month.
Because of this, many families find themselves struggling to pay for the care that their loved ones now require.
Regardless whether it’s in-home care, assisted living, or memory care that your loved one needs, the costs can quickly add up. Many families are left wondering how they will possibly be able to afford it.
Fortunately, there are a few resources available that can help families and caregivers pay for these essential care needs. Here, we discuss 7 ways to pay for senior care.
1. Medicare and Medicaid
Medicare and Medicaid are the two most common government-funded programs that help families pay for senior care costs.
Medicare is a federal program that provides health insurance to individuals age 65 or older and those with certain disabilities.
However, Medicare does not cover long-term care, so it’s most helpful for immediate healthcare needs.
On the other hand, Medicaid provides healthcare coverage to low-income individuals, including older adults.
Medicaid does cover long-term care, which helps many families. Eligibility for Medicaid varies by state, but generally, individuals must have limited income to qualify.
2. Veterans benefits
Some veterans and their spouses could be eligible for VA benefits to help pay for care needs.
The VA offers a variety of programs, including Aid and Attendance, which provides financial assistance to vets and their spouses who require assistance with daily living activities.
3. Long-term care insurance
This form of insurance is designed to help cover the costs of a variety of long-term care options, such as memory care.
Long-term care insurance policies vary, but generally cover services such as nursing home care, in-home care, and assisted living.
Premiums for long-term care insurance can be costly, but they may be worth it if the policyholder requires long-term care for the duration of their lifetime.
4. Home equity loans and credit
Families may also be able to use a home equity loan or line of credit to pay for their loved ones’ care costs.
With a home equity loan, the borrower receives a lump sum of money and repays the loan, with interest, over time.
While this may be discouraging to some, the advantage of this option is that it is relatively easy to obtain.
Additionally, the borrower can draw on the line of credit on an as-need basis and only pays interest on the amount they’ve borrowed.
Home equity loans and lines of credit can be a great option for older adults who have a significant amount of equity in their homes.
5. Crowdfunding
Crowdfunding is a relatively new way to raise money to pay for healthcare costs.
Websites like GoFundMe allow families to create fundraising-style campaigns and share them online to raise money for care costs on a donation basis.
While crowdfunding can be a quick way to raise money, it’s helpful to be aware of the sneaky fees charged by some crowdfunding websites and to carefully consider the potential impact on privacy.
6. Non-profit organizations
There are countless non-profit organizations that provide assistance to seniors and their families, each with their own unique benefits.
These organizations typically offer financial assistance and sometimes offer other services like counseling and caregiver support groups.
Just a few of the non-profit organizations that can provide assistance to seniors include the Alzheimer’s Association, National Council on Aging, and New York’s Elderly Pharmaceutical Insurance Coverage program.
7. Other options
If none of the above options suit your family’s needs or feel like the right fit, there are some additional options to consider.
Understandably, not all older adults will require the same level of care, and many families are fortunate enough to have family members who are able to step in and help on a regular basis.
Caregiving can be an exhausting responsibility, and respite care is a more affordable option that can offer caregivers a necessary break.
Additionally, adult day programs are another less costly option that can be used on an as-needed basis. They vary in price, but the national average is around $78 per day.
Recommended for you:
- Affordable Home Care: 8 Ways to Lower Senior Care Costs
- 3 Tips to Choose Between Assisted Living vs In-Home Care
- When They Say No: 8 Ways to Introduce In-Home Care for Seniors
Guest contributor: Whether you’re a caregiver looking to enhance your knowledge and skills or simply seeking to learn more about dementia home care, All Home Care Matters offers a must-listen podcast and YouTube channel. By subscribing to the show, you will gain access to a wealth of information and tips that can help you provide the best possible care for your loved one. Find us on Apple podcasts or on YouTube.
References:
– Genworth Cost of Care Survey
– Adult Day Care Costs 2023
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