How to Pay for Nursing Home Care
According to researchers at the Urban Institute in Washington, D.C., as people live longer, more Americans than ever before will be in need of nursing home care. Whether Americans pay for nursing care themselves or rely on the government, nursing home care puts a strain on everyone’s budget. Here's a guide on how to face this problem.
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Instructions
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Purchase a long-term care insurance policy. Your age at the time of purchasing the policy and the benefits you select determine your premiums. Normally, this type of policy pays a daily fixed dollar amount.
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Look into government assistance through Medicare. However, be aware that this is a short-term solution, as Medicare normally pays for short-term skilled nursing care such as rehabilitation services. A doctor will need to certify that you need skilled nursing care and the nursing home needs to be Medicare-certified.
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Consider applying for Medicaid. It pays for custodial nursing home care. However, only low-income persons qualify. If you enter a nursing home as self-insured and use up you assets, you may be eligible for Medicaid once your resources run out.
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Inquire about receiving care at a VA facility if you’re a veteran. Keep in mind though, that veterans with service-related medical conditions receive preference due to limited space.
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Use your savings to pay for nursing home care (self-insure). One possibility is to liquidate some investments. Another option is to borrow against your value life insurance policy.
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Tips & Warnings
Consult a financial adviser if you plan to self-insure for guidance on estate planning and taxation issues.
