If you or a loved one are unable to care for yourself due to a chronic condition such as dementia or a physical impairment, you may benefit from receiving long-term care services. It is useful for activities like eating, moving around, and washing up. If you require assistance from another person or need to be reminded to take medication, this can be equally useful. There are many ways for you to finance your long-term care costs, find out if long term insurance can be used to finance assisted living in New Braunfels, TX.
Financing Assisted Living
The price tag for long-term care is determined by several factors, including the specific care services required, the length of time such services are required, the location of the care, and the specialty of the caregiver.
Several options exist for covering the cost of long-term care:
- Medicaid
- Medicare
- Personal savings or cash
- Long-term insurance
- Payments or benefits from a life insurance or annuity
Medicaid
Medicaid is a joint federal and state program that helps low-income residents pay for medical care and other forms of long-term support.
Medicaid eligibility is contingent on meeting the state’s income and asset thresholds. Income and assets serve diverse purposes. Your assets are the items you own that can be converted into money. Some people do not qualify for Medicaid unless they have used up their assets by paying for long-term care out of pocket.
Medicare
People over 65 and those under 65 who have disabilities are eligible for Medicare, a federal program that covers the cost of medical treatment. You may be eligible for Medicare coverage of long-term care expenses such nursing home stays, hospice care, and rehabilitative services. It will pay for a person’s nursing home stay following a hospitalization for up to 100 days. The first twenty days of a hospital stay are covered in full by Medicare. Co-payments range from $140 to $2,040 per day for days 21 to 100.
Long-Term Insurance
Many different kinds of care are covered by long-term care insurance.
- Care provided at a retirement community or assisted living community.
- In-home nursing and medical assistance of various kinds.
- Adult day care centers that provide nursing, therapy, social and educational activities, and supervision.
- Additional services like hospice care, respite care, care following a hospital stay, assistance with household chores, and caregiver training for family members may all be covered by various policies.
Services That are Not Covered
Some medical disorders are either not covered by long-term care insurance at all or are covered just over a certain period of time. Typically, insurance will not pay for things like:
- Those with a history of pre-existing medical problems. An individual with a pre-existing disease who has sought medical attention for their sickness within the preceding six months prior to the effective date of coverage. There may be a waiting period of up to six months following the policy’s effective date before a prior ailment is covered under a long-term care policy.
- Some conditions of the mind and nerves are not covered by long-term care policies, but conditions associated with aging, such as schizophrenia, significant depression, and Alzheimer’s disease, are. If you already have Alzheimer’s, an insurance company can refuse to insure you.
- Domestic support and attention are typically not covered by insurance policies. However, some plans include funding for caregiver training.
