When it comes to home care for seniors, we often encounter the same top questions from the families of our customers. Though the questions haven't changed much over the years, some of the answers have evolved. For example, a decade ago, Long Term Care (LTC) Insurance was all the rage. But now, many companies have pulled back their offerings, increased costs, and made qualifications stricter. Consequently, LTC policies have become pricier and often offer less coverage than they once did.
In this series of articles, we'll dive into the most frequently asked questions about senior home care and provide you with the answers you're looking for.
Early Planning for a Smooth Journey
Some of these questions are best addressed early on, ideally when seniors are still in their 70s. Tackling legal and financial issues sooner rather than later can make things smoother for everyone as they age. Starting home care earlier can be a smart financial move. When you initiate care at the first signs of need, you can often prevent more serious health issues that require expensive interventions or hospital stays. Early care allows for better management of chronic conditions, reducing the likelihood of costly emergency room visits or long-term hospitalizations. Additionally, planning ahead provides the opportunity to explore various funding options and secure the best possible rates for services, avoiding the premium costs that come with last-minute arrangements. By addressing home care needs early, you can create a stable, well-planned environment that ultimately saves money while ensuring your loved one receives consistent, high-quality care.
Financial Planning and Assistance
Navigating the financial aspects of securing aging services for a loved one can pose significant challenges. Ideally, there are savings set aside to cover these needs. However, in many cases, we find families grappling with tough money decisions. Quite often, if there is a couple involved, you also need to consider having money available later for a surviving spouse's needs. These are normal and important questions to consider.
Some options to consider include whether to pursue a reverse mortgage on your home, liquidate stocks and bonds, or tap into savings as the primary resource. In such situations, it's crucial to establish priorities on how to pay for in-home care.
One of the first questions that comes up is, "How much does this cost?" It's a sensible question. Can we afford this? How does it compare to other options? When I first entered the senior care industry, a seasoned veteran told me that senior care is the most expensive thing you'll ever purchase without ever wanting to buy it. That's why it's so important to get it right. While pricing may vary slightly between companies, what will differ more is the quality of care, the ability to meet clients' ever-changing needs, and how smoothly they work with families to provide aging-in-place services. I highly recommend interviewing two or three companies on the phone. See if they ask good questions about the needs of the client and family, ask them specific questions about your situation, and see if they offer helpful suggestions on how they can help. Discuss long-term goals, like aging in place for life vs. an eventual transition to a facility.
Legal Planning
You will want to have a legally recognized Power of Attorney (POA) for your respective state. Compliance with state-specific requirements is essential, and this arrangement should be established while your loved one is still of sound mind. Legal consideration is generally considered necessary for both medical and financial authority. Sometimes this is the same person but often it’s a shared responsibility. Additionally, exploring alternative funding sources, such as veteran benefits if applicable, can offer avenues to alleviate financial strain. It’s much easier to do this if you begin the process with a veteran who can answer the basics of his military service.
If limited resources are an issue, seeking assistance from county social workers to assess eligibility for Medicaid can provide vital support. Be sure you understand the laws governing receiving Medicaid assistance. While the person you are caring for may not have cash available for their care, they may have property. The government will be looking for reimbursement for the money they paid on behalf of any claims made under Medicaid. They will seize property and sell it to get their money back. If a senior does own property, another solution might be to utilize a reverse mortgage. In a typical situation, they can continue to live in their home, receive tax-free disbursements of funds, make no payments, and have more options available for care beyond state-run programs.
Looking Ahead
Investigating potential tax breaks at both state and federal levels can help safeguard financial stability in the long term. The tax breaks may cover things like nursing services, home modification, or medical equipment rental. This can be particularly important if you are safeguarding money for the other partner.
By proactively addressing these financial considerations, families can better navigate the complexities associated with caring for elderly loved ones while preserving their financial well-being.