Families and seniors find the cost of non-medical homecare expensive and often wonder if there are other options that could assist them in paying for non-medical home care. There is an indifference in the cost of home care, amongst states and within the geographic area of the state. This means the choice of care provider is a major factor in affording non-medical home care. Listed are five (5) payment options for non-medial home care.
1). Private Pay:
Private pay is one of the most common forms of payment and is accepted by nearly all home care companies. Paying “out-of-pocket,” private pay means your loved one or the family will use existing savings and assets to cover the cost of home care services.
2). Long-term Insurance:
Individuals with long-term care (LTC) insurance can use the benefits to pay for home care. Some policies may require a doctor’s note stating that the beneficiary cannot perform ADL’s. As with most insurances “you would rather have it and not need it, then to need it and not have it”. LTC insurance is a great option to consider when financially planning for your future. .
3). Medicaid:
Medicaid, is an insurance program for low income persons, that pays for non-medical home care, home health care, and other in-home supports to help individuals remain living in their homes. However, Medicaid rules are state-specific. Therefore, eligibility and benefits differ in every state. When Medicaid provides care outside of nursing homes, it is referred to as Home and Community Based Services (HCBS). HCBS can be covered under the following:
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Regular Medicaid, often called State Plan Medicaid
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Medicaid Waivers, also called 1915(c) Waivers or HCBS Waivers
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A relatively new state plan program called the Community First Choice Option (CFCO)
4). Medicare:
There are many misconceptions around Medicare’s benefits for home care. Original Medicare, also referred to as traditional Medicare, does not pay for non-medical care, period. Therefore, assistance for non-medical care provided in the home is not covered.
Medicare Supplemental Insurances cover Medicare co-payments and deductibles. But they do not add new areas of coverage. So these policies are of no assistance for non-medical home care
5). Veterans:
There are several forms of assistance from the Department of Veterans Affairs (VA) that help veterans afford home care. This may be direct financial assistance or care services that can reduce a veteran’s overall need.
There are three different pension benefits (cash assistance) that can be applied towards home care. Individuals who require more care are eligible for higher benefit amounts. These are the Improved Pension, Housebound, and Aid and Attendance. Eligibility requirements and benefit amounts are available here. Veterans can also get care assistance through Veterans-Directed HCBS, a relatively new program. This program allows for self-direction of services. Also available to veterans is the VA Respite Care program, which can reduce the home care hours a veteran requires.
Please Note – Funding for services varies from state to state. Waiting lists for service may exist.