Long-term care costs are a major elder law concern. According to the United States Department of Health and Human Services, 70 percent of people turning 65 will need living assistance eventually. If you need help with your activities of daily living, the care is looked upon as custodial care rather than medical care or convalescent care. Medicare does not cover long-term custodial care.
Long-term care is extremely expensive, and it is impossible for many people to comfortably pay out-of-pocket. We practice law in the state of Iowa. Genworth Financial tells us that the median annual cost for a private room in a nursing home in Iowa is $67,525 at the present time.
Medicaid is the solution for many seniors who need long-term care. Though it is a need-based program, people often divest themselves of assets prior to applying for coverage. This practice is referred to as a Medicaid spend down.
Levels of Care
There are different levels of care that you may require when you reach an advanced age. Nursing homes are going to provide the maximum amount of assistance. Assisted living communities provide help with your activities of daily living, but you have a greater level of independence.
Some people can receive the care that they need in their own homes. Many seniors would greatly prefer this arrangement. You get to remain in familiar surroundings, and this can be comforting, especially when you may have lost loved ones. When you receive in-home care you still have contact with your neighbors, and in-home care is going to be much less expensive than full-time residence in a nursing home.
There are professional in-home caregivers that can be engaged, including homemakers and home health aides. If you can qualify, Medicaid will pay for in-home care indirectly through a program called the Home and Community-Based Services (HCBS) “waiver” program.
There are strict asset and income limits that you must stay within to qualify for Medicaid. The Home and Community-Based Services program has less stringent requirements, and this is why it is referred to as a waiver program.
The requirements are eased because this program reduces the nursing home and assisted living community population. Many people are happier at home, and in-home care is more economical.
Free Report on Medicaid Planning
Long-term care costs are something to take seriously when you are planning ahead for the future. Most people who are receiving long-term care are enrolled in the Medicaid program.
If you would like to learn more about Medicaid planning, download our free special report. This report will provide you with a solid foundation of information, and you can obtain access through this website.
To get your copy of the report, click this link and follow the simple instructions: Free Medicaid Planning Report.