Financial Considerations

Has your parent recently been hospitalized and needs a place to recover? Do they seem lonely and withdrawn living in a house by themselves? Or has your family considered that your parent’s physical or mental health is declining, and they are not safe living alone? Whatever the reason or concern, your family is now facing the need for long-term care for your parent. The beginning of this process may be overwhelming. But if we break it down into parts, you can tackle each aspect and better educate yourself quickly to find the best solution for your parent. Let’s start with the financial considerations when looking for senior care.

Your family may need to have the tough conversation of how to pay for the expense of senior care. The expense can be challenging for some families on a fixed income or who have not planned for future care. Don’t panic. There are options to overcome financial hurdles and to get to a happy ending. Let us help you find the information you need to make the best choice for your family.

How much will long-term senior care cost?

If your parent can no longer live on their own, you may be considering moving them into an assisted living or memory care community. As you shop for and tour communities, your family may find the monthly pricing confusing and challenging to compare. Some communities may charge an all-inclusive fee for rent and services, while other communities may charge individually for only the services needed. As a first step, it’s important to understand that there are three typical ways that a community will charge.

  • Care points or fee-for-service. This typically refers to charging for rent plus individually for the care services that the resident will receive
  • Care Levels/Level of Care. Some communities will offer three or four levels of care, and the more care your parent needs, the higher level a family will pay for
  • All-inclusive. Some communities opt to charge a single fee per month that includes the price of rent, and all care and services offered
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Options to Help Cover Senior Care Costs

LONG-TERM CARE INSURANCE

Long-term care insurance is different than traditional health insurance. It is designed to cover the costs of services and support when you can no longer care for yourself—whether that is in your home, at an assisted living community, memory care community, respite care, hospice care, or in a nursing home. The policyholder can select from a range of care options and benefits. Services can include caring for the ADLs, such as bathing, toileting, and dressing, or skilled nursing, or occupational, speech or physical therapy.  Long-term care insurance typically covers what is not covered by health insurance, Medicare, or Medicaid.

Under the VA Aid and Attendance Special Pension, also known as the A&A Pension, qualified veterans or their surviving spouses can receive a tax-free monthly sum meant to help defray the costs of assisted living or memory care. A single veteran may receive $1,911 per month. Two married veterans may receive up to a maximum of $3,032 each month in 2020 for this purpose, while a veteran and his or her spouse may receive up to $2,266. A surviving spouse may be entitled to $1,228 monthly.

As you assess assisted living and memory care community options, it is good to have a budget in mind of what you can afford. It is best to get a clear understanding of your parent’s finances and assets, as well as if any family members want to contribute, to create a budget. You may need to consider selling or renting their home. Like any apartment options or real estate investments, the expenses (or savings) of an assisted living community can be determined by the location and the amenities offered. We encourage you to tour multiple properties to understand and compare costs.