Focus on cost, amenities and goals for in home care or assisted living

Planning for in home care or assisted living for Americans is important because more Americans are living longer.  Even back in 2011, the US Census bureau stated that the number of people living to the age of 90 had tripled in the three previous decade and would likely quadruple by 2050.

Doctor holding sign that reads long term care, which may be in home care or assisted living
Doctor holding a card with text LONG TERM CARE in both hands.

Life Expectancy and the Need for Care

Seniors turning 65 years old today have a 70% chance of needing some sort of long term care, either in home care or assisted living, according to this article in Forbes magazine.

Seniors who live longer generally have some sort of disability or need help at some level for all activities of daily living.

 In home care costs and nursing home costs have steadily risen.  These skilled facilities provide long term care including personal care needs, help with daily activities, meals, skilled nursing care and safety monitoring. 

The cost of in home care or assisted living in California

The cost in California, according to the latest Genworth Cost of Care Survey, or a private nursing home room is $12,162 monthly and roughly $9794 on average for a shared room. 

Compare that to the cost in 2011 of about $6,000 per month for a nursing home room. 

24 hour care in home care costs, when provided from a quality home care agency, will run roughly $18,000 per month, paid for out of pocket or with long term care insurance

According to Genworth’s Cost of Care Survey 2020, the average cost of assisted living in California in 2021 is $5250/ month, up by $500 per month over 2019.  

Long Term Care at any level, in the home, assisted living or nursing home can add a tremendous cost to seniors and their families.

Man and nurse in dining room of in home care or assisted living
African American senior in wheelchair and young nurse looking through the window at residential care home.

Government Programs Pay for Only 16% of Long Term Care

Government programs such as Medicare, Medicaid community based waiver programs and the Veterans Administration will cover the cost of long-term care for in home care or assisted living under certain conditions. Medicare will cover rehabilitation from a hospital stay or limited care at home if there is a skilled (medical) need. The Veterans Administration will cover the cost of nursing home care indefinitely if the veteran is at least 70% service-connected disabled. The VA will also cover other forms of home-based or community-based care if there is a medical need.

Medicaid will cover both medical and non-medical related long-term care but only for those who have limited income and assets. 

Life insurance policy to pay for in home care or assisted living
Close up of Life Insurance Policy with pen, calculator

Funding long term care, in home care or assisted living with your life insurance policy

Drawing cash from life insurance or changing a life insurance policy should only be done after reviewing with an expert advisor.  Loss of the policy and death benefit could prove to be a detriment.  If, however you have accumulated cash in a life insurance policy and no longer need the coverage you may consider using the cash for long term care or purchasing a LTC rider to your current policy.

New insurance products are being developed to cover both life insurance and long term care insurance for in home care or assisted living. ElderLawAnswers reports:

“A new law makes the purchase of products that combine annuities or insurance policies with long-term care insurance more attractive. These “hybrid” products are gaining in popularity due to a law that went into effect January 1, 2010, making distributions from life insurance and annuities tax-free when used to pay for long-term care. The same law also allows owners of annuities or life insurance policies to exchange their old policies for insurance for long-term care or hybrid policies without being taxed.”

Combination sales which include life insurance, annuities and traditional long-term care coverage are becoming popular with insurance companies and may prove a method of financing long term care.  Investigate closely, however to find what exactly will be covered.  Some policies do not cover home care costs or complete costs of nursing homes.

Long Term Care Insurance Funding for in home care or assisted living

The first long-term care policies were offered about 40 years ago. These were primarily nursing home-only policies designed to take over when Medicare rehabilitation ran out. They were not the comprehensive benefit policies we see today.

Long Term Care Insurance policies today are greatly diversified in their coverage.  Home care, nursing home costs, adult day care, physical therapy, skilled and non-skilled nursing care are some of the services covered.  Policies vary in price and what they cover.  There is also a very restricted qualification of physical and mental heath to get a policy.  Purchasing a policy at a younger age makes it easier to qualify and also provides cheaper premiums. It is best to consult with a long term care insurance professional about the type of policy that fits your needs and budget.

At Home Nursing Care works with families to start a long term care insurance claim, and we can bill directly and be paid directly by the long term care insurance for in home care.

Long Term Care with the VA Aid & Attendance Benefit

Veterans Aid and Attendance Pension Benefit

Though not an insurance policy, the VA Pension Benefit should be mentioned as a way to pay for long term care needs.  A veteran or spouse of a veteran who served during a period of war can receive money, up to $2,019 a month, to pay for long term care medical expenses, home health care, and assisted living cost.  A qualified Veteran Consultant can help you determine if you qualify for this benefit.

Pre-Need Burial Insurance

One might ask what Pre-need burial insurance has to do with long term care. The purpose of preneed life insurance is to set aside funds for your funeral, before the need arises.

It is an insurance policy that covers the cost of the predetermined expenses of a funeral, cremation or burial.  It gives the purchaser the opportunity to preplan the services and peace of mind in having it paid for.  This is usually an insurance policy that pays at time of death for these expenses. There are many insurance companies that offer these packages as well as funeral homes.

The saddest cases of long term care needs we hear are:

“Mother can no longer live alone and she has no money to go live in a care facility.”

“ Is there someone that can come help me take care of my wife?  We live on our Social Security and I can not pay what home care costs.”

“Father died last night and we have no money to bury him, what do we do?”

It is important to make the necessary arrangements to cover long term care and end of life costs.  There is no government program that will cover all those needs. The National Care Planning Council strives to educate people about long term care services and encourages the planning that needs to be done to prepare for future costs and needs.

Contact At Home Nursing Care at 888-634-8004 for more information on senior services in San Diego or Los Angeles.