Much to many people’s surprise, Medicare doesn’t pay for long-term care. With a year at a nursing home costing over $70,000 on average, finding funds can be challenging.
Many elderly people go on Medicaid, which pays for some types of care. Check with your state’s requirements on spending down resources so you don’t wind up with a penalty when applying.
When they need home care, some people keep money in the family by paying their children to be their caregivers. The parent can pay out of pocket (check with an elder-law attorney for rules), through certain long-term-care insurance policies or in association with Medicaid in some states.
Your local Area Agency on Aging can also tell you whether anyone offers free or discounted senior care programs in your city.
The chart below lists what you can use to pay for various types of senior care. Some of the forms of payment may be unfamiliar to you, so here are some websites where you can read more about them:
Life insurance settlements: You can get money out of some life insurance policies through an accelerated death benefit, life settlement or viatical settlement. The Department of Health and Human Services has information about those options here.
Social Security. Look into survivors benefits and Supplemental Security Income. You can check eligibility through the Social Security Administration’s online screening tool.
Reverse mortgages allow people 62 or older to get money out of their home’s equity. Read more at the Department of Housing and Urban Development’s website.
Aid and Attendance is for veterans and their surviving spouses. VeteranAid.org has thorough information on this.
Alabama