 Senior
Home Care During the Golden Years
How
To Afford It?
Senior Home Care Payment Plans
When we ask "What senior home care payment plans
are available?", we are referring to the care that a person
needs to stay safe in his or her own home or apartment. This
is commonly known as "home care" or "in home care".
This is where we want to focus our discussions concerning the
payment of in home care.
Far too often, due to lack of research and preparation, seniors
are unable to pass along the inheritance they wanted to, or worsen
their health by paying for health care services that may have
been funded via an alternate means.
Medicare
Medicare, utilized by most seniors in a home care environment,
is issued when the senior reaches the age of 65. It is paid out
if the senior has retired and paid into Social Security while
they were working. Medicare is a health insurance; therefore,
the coverage it provides for home health care is limited. That
is, some form of medial assistance is required which has been
ordered by a doctor, such as nursing visits to draw blood.
Even then, the allotted payout from Medicare is small, only
4 hours/5 days per week. Sometimes it is less than that. Furthermore,
Medicare pays for coverage of prescription drugs through private
companies under its prescription drug plan. If you already understand
the prescription drug plan, but want to find out what is offered
in your state, then the state specific plans are what you need. If
you are seeking to find a formulary that matches your current
one, then the state specific formulary site can assist.
If the senior, whether staying in a home care situation, or
other facility, decides not to choose a Medicare HMO, which requires
them to see doctors within  the plans network,
then the senior can choose a PPO plan.
A PPO allows the individual to choose their own doctor if
the doctor accepts Medicare. If the senior decides to choose
this solution, then they will typically pay 20% of the doctor's
visit, or co-pay.
Most seniors will purchase a supplemental insurance plan,
also known as medigap to cover the co-pay, or will choose to
put the monies aside to pay the co-pay. Medicare will not pay
for in home care, only for in home HEALTH care; and then only
minimally.
Medicaid
Medicaid is a state operated program, but receives funding
from the Federal government. Medicaid will pay for certain
in home health services, but it is dependent upon your specific
state. Also, when it comes to assets owned, Medicaid, dependent
upon the state, has penalties unless you are below a specific
income level, usually the poverty level.
Consultation with an elder law attorney is highly recommended
for Medicaid planning purposes. If it is believed by the
senior home care participant that they may have to forfeit their
assets, seek out an attorney to determine how to avoid this.
Also if it is the desire of the senior to ensure an inheritance
is left to their family, then especially seek out an elderly
law attorney.
Long Term Care Insurance
Long term care insurance has become widely known and
used in the last couple of years. With the increase in the number
of baby boomers entering the retirement stages of life, and already
seeking senior home care, this financial solution is promising.
The best time to seek the acquisition of long term care
insurance is during early preparation for retirement, or
for "later in life" planning. If long term care is
being sought for immediate use, then it will be difficult to
obtain. And if it is obtained, it will be more expensive than
if purchased earlier in the planning stages. However, the insurance
can be designed to provide specific needs which may lessen
the cost burden.
Other Financial Choices
 Another
way of acquiring the finances to support the senior in the home
care environment may be right where they live. It is referred
to as a reverse
mortgage. Don't confuse the reverse mortgage with a home
equity loan, as they are not the same.
In fact, one of the features
that make the reverse mortgage attractive to finance senior
home care is that loan payments do not have to be made until
the home is sold. Even then, the lender receives only the loan
payment and interest due. If the home value has decreased, then
the lender receives the value of the home at selling. The government
pays the difference. Ensure you consult a financial advisor or
accountant to determine if this right for you.
The senior may want to seek paying for home care by selling
their life insurance policy. This is known as a life or senior
settlement. Most of us just discontinue our life insurance
policy, especially if it is term life insurance. Moreover, as
we become older, the policy becomes more expensive to maintain.
For the senior in a home care environment, this may become
a burden. However, he or she may desire to look into the life
settlement program to extract more than the face value from
the policy.
Then there is the viatical settlement, another type of insurance
buy out program. The viatical settlement does have some restrictions.
The viatical settlement is usually employed for those individuals
who have been told they have less than 24 months to live. If
monies are required for expenses, or bills, or medication, this
may be a viable alternative.
Finally, if you are the senior home care provider, do not
forget to investigate what tax options are available to you.
If your loved one has moved in with you, then you may qualify
for a dependency deduction. Also, if you are providing the majority
of the financial support, this may allow a tax deduction. However,
before applying these possibilities, ensure you discuss the matter
with an accountant or tax lawyer.
Prepare For Senior Home Care
 For
the senior home care provider, please encourage your loved one
to read about the varying financial avenues for ensuring a quality
life. If you are a senior looking into home care, and planning
how to pay in the future, the above solutions can be the answers.
Whatever is chosen, please ensure that you discuss these options
with your financial advisor, or a lawyer, possibly an elder
law legal counsel, and with family members.
With respects to being a senior, and utilizing your extensive
knowledge, make sure that while conducting your home care information
gathering, you don't forget to design your retirement budget.
A budget will show any deficiencies in your financial picture
and where adjustments need to be made.
Finalize your financial plans now, ensure instructions as
to your financial wishes are addressed in your will, and ensure
your loved ones understand your desires, so your senior home
care experience will be an enjoyable one.
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