4 Ways to Pay for Skilled Nursing Facilities
As the majority of the population in the United States ages, people who are retired or are about to retire are often concerned about how to pay for their care if they can no longer care for themselves or their spouse. Whether you choose a nursing home, home health care or assisted living services, you will need some way to pay for your care. Here are four ideas for paying for your healthcare needs.
- 1. Medicare Benefits
If you already have Medicare, or plan to enroll into it once you are eligible to do so, they do provide help in paying for some healthcare services. While they do not pay for long-term care in a nursing home (Who Qualifies to Buy Insurance that Pays for Nursing Home Care), they do help recipients pay for short-term care services. Medicare covers services when they have been deemed medically necessary and for short-term care when the patient's condition is expected to improve.
They provide coverage for some short-term care services including stays in skilled nursing facilities, hospice care or for some home health care services. However, there are criteria that must be met before Medicare considers providing coverage.
- 2. Veterans Affairs Benefits
If you are a veteran of the armed services and are eligible to receive veterans’ benefits, you may be able to use them to pay for your long-term care needs. However, for long-term care, veterans must have service-related disabilities. Expenses may be paid for nursing home care and home care for veterans with long-term needs.
Those veterans that do not have service-related disabilities may still get some of their expenses covered for necessary care if they cannot afford to pay for care services on their own. Their expenses will be covered based on the amount of their income.
- 3. Long-Term Care Annuities
A long-term care annuity is a financial instrument that can be purchased from a financial advisor and they can be purchased until a person is 85 years old. Just like other annuities, this provides a monthly income payment for a specified period of time when you make a premium payment for the annuity.
This annuity is broken into two funds: one that provides for long-term care, such as independent living, and a second cash fund that can be spent however you please. The long-term care (Using a Reverse Mortgage for Assisted Living Needs) fund can be accessed right away, but the cash fund cannot be accessed until a specified date in the future.
- 4. State Medicaid Services
The state in which you live provides a safety net for those who cannot afford to pay for long-term care themselves. Medicaid provides for both institutional and community based long-term care services. So, if you are approved to receive Medicaid services and need to live in a facility, Medicaid will help pay for those expenses. Medicaid is based on income, so people who have a chronic illness or a disability may be eligible for services regardless of age.
These four suggestions are just a few of the many ways to help pay for healthcare expenses that you may require after retirement, or even before.
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