Paying for Assisted Living
There are a variety of ways to pay for assisted living. Assisted living typically relies on funds from retirement planning, government benefits you or your loved one are eligible for, and other sources. We’ll cover these methods and other common ones below.
Private pay is the most common form of payment for assisted living. As a senior, you may have taken steps to prepare for retirement by saving money. Often, family members carry some or all of the expense of assisted living as well. Paying out of pocket quickly exhaust’s a senior’s resources, and can lead to Medicaid eligibility.
Long-Term Care Insurance
Long-term care insurance covers the cost of care for individuals with a chronic medical condition, disability, or otherwise have their need confirmed by a doctor. More specifically, your eligibility is frequently determined by your ability to perform activities of daily living (ADLs). These include bathing, toileting, dressing, eating, and transferring.
Long-term care insurance is valuable as a tool for protecting your savings and give you a head start on preparing for your care options.
VA benefits are a common component of long-term care. To access these services as a veteran, you MUST contact the VA. If you’re signed up for VA health care, you need specific services, and that service is available near you, you may qualify for coverage.
Life Insurance Policies
Life insurance policies can be withdrawn against, and many financial advisors or companies offer relatively favorable term or whole life insurance policies. By withdrawing against your life insurance policy, you’ll reduce the value of your death benefit. However, this is usually preferable to having to pay for long-term care out of pocket.
If you have no savings or assets, and your income is low, you could qualify for government assistance. This often takes the form of Medicaid, which is managed by each state separately. In Florida, you’re looking for the Florida Statewide Medicaid Managed Care Long-Term Care Program (SMMC LTC).
This is one of the most common questions we get. The answer is no. Medicare does not cover long-term care if that’s the only care you need. Long-term care revolves around assistance with activities of daily living and improving quality of life for seniors. Medicare primarily functions as a tool for the elderly to receive health care services, particularly surgeries and recovery, that they may not otherwise get coverage for due to their age.
Inpatient care at hospitals, skilled nursing facility (nursing home) care, and home health care following an injury or surgery are all large components of Medicare coverage. Preventative services, mental health, ambulance services, and medical equipment are also frequently covered.