How to Pay for Long-Term Care
Often, I am asked, “How can I possibly pay for long-term care costs?” It is a question laced with as much fear as it is seeking answers. Issues surrounding long-term care are confusing, complicated, and costly. I would like to briefly explore some of the ways most people will be paying for long-term care costs. The source of revenue for these costs comes from a variety of sources both personal and external.
The first source of payment for long-term care costs are your personal assets – income, investments, and property. There is a myth in America that somehow Medicare will pay for long-term care. This is simply a mistaken idea. Medicare is a health insurance program designed to pay for healthcare costs. Medicare will cover brief rehabilitation stays in a long-term care facility after an illness or surgery but does not cover extended or permanent stays in a long-term care facility.
A second source of payment for long-term care is long-term care insurance. This is a private insurance program purchased by an individual for the future costs of long-term care. There are multiple companies which sell these products, but they are all privately owned. A very few employers offer long-term care insurance as an add-on benefit which can be purchased by the employee.
Third, for those who are veterans or the spouse of a veteran, there are benefits which can cover a portion of the long-term care costs. These benefits are referred to as Aid & Attendance benefits and generally are available for active-duty veterans who served in a combat zone during their period of service.
Fourth, for assisted living care, Medicaid may provide what is called Home Care Based Services. These income-qualified services are now available for those living in an assisted living facility and can cover a portion of the costs.
Fifth, Medicaid covers the majority of long-term care costs for those who qualify financially for Medicaid services. Medicaid is available for skilled care costs in a long-term care facility.
Also, for those who have served in a Southern Baptist ministry, have a Guidestone retirement account, and meet certain income limitations, Guidestone offers a financial supplement called Mission Dignity.
There may be other sources of revenue available for covering the cost of long-term care, but these are the ones we encounter most often. Our staff at each of our campuses are experienced in applying for and helping you understand these various revenue streams and we are available to assist you in finding the answers you are looking for.
