Home health care insurance is another factor to consider in planning for in home care for seniors. With median costs ranging from $39,135 to $77,745 per year depending on the type of care needed, finding a way to pay for long term care can be a challenge for many people. As an example, assuming the average stay in a nursing home is three years, costs can easily surpass $225,000 for the entire long term care event.
People generally think there are four basic ways to pay for long term care: Medicare, Medicaid, out of pocket, or private long term care insurance. Those who are thinking of relying on Medicare or Medicaid to provide long term care services should be well informed about both the advantages and limitations of these home health care insurance options.
Home Health Care Insurance
Generally, Medicare is the federal program that provides hospital and medical insurance to people aged 65 or older and to certain ill or disabled persons. Benefits may be available for home health care, but only if certain conditions are met. Medicare may pay for up to 100 days of care in a skilled nursing facility per benefit period — 100% for the first 20 days (after a three-day hospital stay, provided skilled care is needed).
Then, for days 21-100, Medicare requires a co-payment. To help cover the co-payment, many seniors also have a Medicare supplement insurance policy. In general, once Medicare stops paying for care, the supplement payment also will end.
Learn more on Medicare Home Health Care.
Medicaid (referred to as Medi-Cal in California) generally pays for certain health services and nursing home care for those with low incomes and limited resources. Medicaid may also pay for some long term care services at home and in the community. Medicaid has limitations on the amount of assets you can own and the amount of income you may receive each month before you are eligible for benefits. Who is eligible and what services are covered vary from state to state. There also are restrictions on transferring assets to others in order to qualify for Medicaid.
Learn more on Medicaid Home Health Care
Long Term Care Insurance
Long term care insurance helps pay for your care and protect your assets by reimbursing you for covered expenses up to the amounts set forth in your policy. Depending upon the type of policy you choose, this insurance can reimburse you for a wide variety of home, community-based and facility care services, and can offer you care options that may not be covered through government programs.
Learn more on Long Term Care Insurance
Out Of Pocket Or Self Insurance
Self-Insure (or Out-of-Pocket Payment) As you page through this report, you can look up the costs of various types of care in your state — private and semi-private nursing home; assisted living facility; home health aides and homemaker services. These costs can give you a good idea of how much money you or your family would need if you or a loved one requires long term care.
Learn more on In Home Care & Paying Out Of Pocket