Paying for Home Care
Starlight Caregivers provides personal and companionship care, not medical care, so unfortunately health insurance, Medicare and Medicaid do not help cover the cost of non-medical home care at this time. A doctor may prescribe that a nurse or other health practitioner provide support in the home, but that is usually a very short visit to complete a specific medical purpose and is covered by insurance. The remainder of the day and evening is non-medical and where clients need support with activities of daily living (ADLs).
Clients typically use the following to pay for home care costs:
- Private savings
- Social Security
- Long term care insurance (the plan must have a rider for non-medical personal care)
- Veteran Aid and Attendance Pension: Whether or not you or your family member qualifies for the A&A program, the VA allows households to deduct the annual cost of paying for in-home care when calculating their regular pension benefit.
- Real estate conversions like reverse mortgages, home equity lines of credit, Rex Agreements, and EquityKey
- Life insurance policies can sometimes be used as a funding source since they can be surrendered for their cash value or converted to cash by using a viatical life settlement.
Most of our clients’ non-medical care is paid privately via savings or long-term care insurance. For your convenience, we accept payment by check, bank transfer, and credit cards.
Not surprisingly, people want to age at home in a safe and familiar environment, and home care is also the lowest cost when compared to alternatives. To understand how long-term care costs are trending over time, Genworth Financial announced the results of its 2019 cost of care study which was calculated on a 5-year average based on a comparison of data gathered from providers across the country resulting in:
- The 2019 national average cost of a private nursing home room ($280 a day / $ 102,200 annually) has risen an average 3.31 percent per year (365 days of care).
- The 2019 national average cost of a semi-private nursing home room ($247 a day / $90,155 annually) has risen an average 3.10 percent per year (365 days of care).
- The 2019 national average cost for a month in an assisted living facility ($4,051 a month / $48,612 annually) has risen an average 2.97 percent per year (12 months of care, private one bedroom).
- The 2019 national average cost for a home health aide ($23 hourly / 52,624 annually) has rison an average of 3.09 percent per year (44 hours per week for 52 weeks).
Starlight Caregivers is closely engaged with local and national home care industry associations and are closely monitoring new laws and regulations that can help families pay for this rapidly growing need. It is critical that families develop a financial plan to meet loved one’s home care needs. Having a plan in place helps to ensure that your loved ones are comfortable, secure and cared for as they age and that your family’s financial resources are preserved in the process.
Call us for a free, no obligation in-home assessment. (650) 600-8108