Note that the largest source of financing for nursing home care in the United States is Medicaid. While there are other viable sources, it is important to state that this federal and state program has for decades provided comprehensive health coverage to qualifying low-income individuals, including many elderly people who have an immediate need for long-term care services.
Keep in mind that Medicaid covers a good percentage of nursing home costs, especially for individuals who have depleted their savings and assets.
In these modern times, this program has also proven to be a very essential funding mechanism for a good percentage of the elderly population who require nursing home care.
Major Sources of Financing for Nursing Home Care
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Medicaid
This joint federal and state program has for decades made available health coverage to low-income individuals, such as the elderly and those with disabilities. To become eligible for Medicaid, individuals will have to align with certain income and asset requirements.
Note that after an individual is confirmed to be eligible, Medicaid will take care of almost every nursing home cost, such as room and board, medical care, and personal care services.
Nevertheless, note that Medicaid is most often considered a last resort, coming to the rescue of individuals after they have exhausted their savings and assets.
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Medicare
Keep in mind that this federal health insurance program mainly caters to individuals aged 65 and older, and works to support nursing home care costs but in a more limited capacity.
According to reports, Medicare Part A takes care of short-term stays in skilled nursing facilities (SNFs) for rehabilitation after hospitalization of at least three days.
Aside from that, this coverage is most often confined to 100 days per benefit period, with the first 20 days fully covered as well as the remaining 80 days needing a co-payment.
In addition, Medicare won’t also take care of long-term custodial care in nursing homes, and this refers to care that aids with activities of daily living instead of skilled medical care.
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Private Pay
It simply refers to the concept where residents or their families utilize personal savings, income, and assets to cater for care. The expenses that come with this care are known to be exorbitant and substantial.
With the average annual cost of a private room in a nursing home exceeding $100,000, you will find that Families tend to leverage a mix of savings, retirement funds, and proceeds from selling a home to cater to these expenses. However, once personal funds are depleted, individuals might then be eligible for Medicaid.
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Long-Term Care Insurance
Keep in mind that long-term care insurance for decades has served to take care of the expenses that come with long-term care services, including nursing home care.
These policies are acquired privately and can offer very valuable financial support, although this will depend on the terms of the policy.
Nonetheless, coverage will most often come with a daily or monthly benefit for a stipulated period, and policies might feature a waiting period before benefits come into play.
Long-term care insurance will indeed work to conserve or safeguard personal savings as well as accord individuals with more choices for care. Howbeit, also note that premiums tend to be high, particularly for older adults or those with pre-existing conditions.
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Veterans Affairs (VA) Benefits
It is also possible for veterans and their families to qualify for nursing home care benefits via the Department of Veterans Affairs (VA).
Note that the VA runs its own nursing homes, works with private nursing homes, as well as makes available financial assistance for veterans who require long-term care.
Howbeit, keep in mind that qualification for VA nursing home care benefits will depend on a whole lot of factors, such as the veteran’s service-connected disability status, income, and availability of VA services in the local area. These benefits will prove beneficial especially when it comes to limiting the financial burden on veterans and their families.
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Social Security and Pensions
Even though these payments are not enough to cater to the full cost of care, they are a much-needed source of income that can be utilized to cushion nursing home expenses.
For a good number of elderly individuals, Social Security is a major source of income, and fusing these benefits with other resources can prove worthwhile and ensure the individual can pay for long-term care.
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Assistance Programs
Note that a good number of states and local assistance programs make available extra financial support for nursing home care.
Keep in mind that most of these programs tend to feature state-funded long-term care initiatives, community-based services, as well as other forms of public assistance meant to ensure that low-income individuals can get or pay for certain crucial care.
The exact benefits to be received will vary from one location to another, but these programs can provide much-needed support for individuals who are considered ineligible for Medicaid or need supplementary assistance.
Conclusion
Truth be told, paying for nursing home care can be daunting especially since it involves dealing with the complex landscape of federal, state, and private resources.
While Medicaid is renowned for being the largest and most noteworthy source of funding, especially for long-term care, keep in mind there are other sources.
Having a comprehensive insight into these financing sources will work to ensure that individuals and families can make the right decisions as regards long-term care planning and guarantee that appropriate care is accessible and affordable.