Three Ways to Pay for Long Term Nursing Home Care
Long-term care insurance
In determing how to pay for long term nursing home care, the first way, and by far the best way, is with long-term care insurance. There are different kinds of long-term care insurance policies out there. Unfortunately, most people do not have long-term care insurance, and they wait too long to get it. By the time they apply for it, they are either too sick, or it is no longer affordable. If you can get a long-term care policy, I would encourage you to do so because it is the best way to pay for care.
The second way to pay for long-term care is through the Medicaid program. The Medicaid program is a federal program that is administered by the states, but it has very strict requirements in order to qualify. An individual cannot have more than $2,000 in non-exempt assets in order to qualify. Most people have way more than $2,000 in assets. If you are married, the rules are a little different, but Medicaid can still be difficult to qualify for.
Out of Pocket
The third way to pay, and what most people are doing, is out of pocket. Right now, nursing home costs in this area are around $7,000 a month. Within 10 years, they will probably be $10,000 a month. Every month, these long-term care costs are due and are eating away at your nest egg at the rate of about $10,000. If you don’t have long-term care insurance and you don’t qualify for Medicaid, then you are going to have to pay out of pocket.
I hope this answers the question about how to pay for long-term care. Our clients are encouraged when told how to minimize out-of-pocket expenses and get qualified for Medicaid more quickly if they don’t have long-term care insurance.