Financial Problems

Alternative housing raise different financial concerns, such as the decision to own or rent, the entrance fees and recurring monthly, quarterly, or annual fees are also of concern. The resident needs to know things like what is included in the costs charged by a facility or community, if there is a possibility for exposure to increases in costs, the role of Medicare and Medicaid and long-term care insurance and how it will benefit them, etc. Along with many more, these are some of the more important financial questions.

Medicare is a national insurance program for Social Security recipients who are at least 65 or disabled. Medicare pays for 20 days of nursing home care in full and will continue to pay a portion of the cost for the next 80 days. The resident is responsible for a copayment, which is currently at about $128.00 per day for days 21 through 100 each benefit period. On the other hand, there is Medicaid, which is a joint federal and state program and is the only public program available to pay for long-term nursing home care.

When trying to decide if to move a senior into alternative housing, all costs should be considered and can vary significantly. Covering these costs can be difficult and may need to be generated from various sources. Eligibility for Medicaid is a difficult question and it is recommended that one consult with professionals experienced in Medicaid law. Individuals have the option of looking into personal assets such as their home, which can be sold or rented out. They may also consider securing a home equity loan or reverse mortgage. Long-term care insurance, if owned, could be a major source of funding. Life insurance can provide funds by the owner cancelling a policy with cash surrender value, borrowing against the insurance policy, tapping into accelerated death benefits, or selling the policy. Deferred annuities that may be owned might be accessible early with no penalty. A disability insurance policy may be exchangeable for a long-term care insurance policy.

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