Archive for the ‘how to pay for senior care’ Category

What Will It Cost To Place a Loved One in an Assisted Living Facility?

Wednesday, January 5th, 2011

Author:

Shawna Ruppert

Of course there is no set answer to this question, as assisted living cost can vary depending on the location of the facility, what they offer, whether it\’s connected with a religious affiliation and of course whether it is privately owned, or is run by a large assisted living company.  It may also depend on how much assistance the person needs of course.

There is a tremendous amount of difference in assisted living cost if the assisted living care is very limited. For example assisted living in a private home may comprise solely of meals, bathing and dressing. In assisted living facilities where the residents have their own rooms or apartments, there may be sumptuous meals offered off of a menu, special diets may be available, all manner of activities may be offered, as well as entertainment and even heated swimming pools with instructors provided. Many of the assisted living facilities are closer to an opulent cruise ship, complete with full service dining rooms with tablecloths and a huge crystal chandelier.

As you may have surmised, the assisted living cost of each of these will actually be miles apart. Keep in mind too that assisted living is used to fill in the gap between receiving home care and then a nursing home. Nursing homes typically have a nurse\’s desk, rails up and down corridors and in general look much like a hospital setting because the residents there need constant medical supervision.

The assisted living cost is generally thought to be approximately half of the cost of a nursing home. This may or may not prove true if the assisted living facility is in a luxurious apartment style facility. Some assisted living facilities also have a concomitant nursing home offering, which would prove very important when it is time to graduate to such.  In this manner, the resident is not moved out of the facility into brand new surroundings that may not please them at all, but rather they remain on the same grounds that they are familiar with, but with more care.

Put another way, an assisted living cost will vary too based on the physical aspect of the care needed. Assisted living is in no way a nursing home, and whereas one person may only need to be helped with taking their medicine each day, another may need help with going to the bathroom. Be sure and ask about such things when you are considering assisted living for your own loved one so that they do receive the care they need.

 

Article Source: http://www.articlesbase.com/elderly-care-articles/what-will-it-cost-to-place-a-loved-one-in-an-assisted-living-facility-2535674.html

About the Author

If you are interested in accessing additional information about assisted living facilities in California or across the country, check out www.800Seniors.com. After discussing your needs or the needs of your loved one, the individuals at 800Seniors will provide you with a full range of options and information to ease the decision making process.

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Paying for Assisted Living

Wednesday, January 5th, 2011

Author:

Angela Stringfellow

As more Baby Boomers – 77 million strong – begin to slide into retirement, the term ‘assisted living’ is going to be on the lips of everyone from financial planners to family physicians.

Assisted living gives older adults a safe, sanitary and supervised living space to spend their sunset years. The number of Americans with an assisted living facility in their future is on the rise – the U.S. Census Bureau estimates that the population of Americans 85-years-and-older will grow by 33by 2010.

In addition, the U.S. Census Bureau estimates that approximately 6.5 million older people currently need assistance with daily living activities. The Bureau reports that number is expected to double by 2020.

With great numbers, however, comes great financial responsibility. How, after all, are people going to pay for assisted living services? Let\’s take a look:

What does assisted living cost?

The Census Bureau estimates that, on average, the per-diem rate for assisted living in a private room is about 60to-70of the cost of a similar-sized room in a nursing home. That could mean a bill of between $50 and $120 per day- and a good-sized case of sticker shock for potentially millions of Americans.

How can you pay for assisted living?

There are several sources of funds commonly used for paying for assisted living: Private funds, long-term care insurance, or sometimes veterans benefits. Private funds can come from personal investment portfolios, like 401k plans or Individual Retirement Accounts. Many people sell their homes, using equity that has built up over their lifetime, to pay for assisted living.

Seniors who do not want to sell their home may consider paying for services through a reverse mortgage, where long-time homeowners essentially borrow against the value of their home. The U.S. Department of Housing and Urban Development has a good analysis of reverse mortgages.

Long-term care insurance – an umbrella term for insurance that covers nursing home care, home-based health care, assisted living health care (in addition to other medical services) – can help shoulder the cost of assisted living for those who have a policy with a few restrictions:

  • For example, most long-term care insurance policies won\’t cover the costs unless you are unable to perform two or more ‘activities of daily living’ (ADLs). Some examples of ADLs include bathing, dressing, eating, getting from a bed to a chair, using a toilet, and walking. Some insurers may evaluate with a physician of their choice – not yours – to see if your condition qualifies for coverage.
  • The type of long-term care policy is critical, too. For instance, a ‘facility-only’ policy covers care received in a licensed Assisted Living Facility or Skilled Nursing Facility, but not care in an unlicensed facility or in your home. Better to get an Integrated Home Care policy with 100protection for care received either in a licensed Assisted Living Facility or Skilled Nursing Facility, or in an unlicensed setting, like your home.

In some cases, veteran\’s benefits can cover the costs of assisted living programs. To qualify, you\’ll need your military discharge papers (copies are fine); a valid medical condition (like blindness – but the condition need not be life threatening) that comes with a doctor\’s letter of validation, certain minimum financial asset conditions, and the filing of a formal application, called the Veteran\’s Application for Compensation and/or Pension, VA FORM 21-526, Parts A, B, C, and D.

Does Medicaid cover assisted living?

While Medicare won\’t pay for assisted living care, in some cases, Medicaid will. Specifically, Medicaid may pay for an assisted living stay of limited duration (mostly 90 days or less). But there are factors that could reduce or stop Medicaid from paying during that time period (for example, your physical condition hasn\’t improved during your assisted care facility stay). Payment statutes vary from state to state, and with Medicaid, financial help with assisted living costs is highly needs-based, i.e. the less money you have, the better chance you have.

Article Source: http://www.articlesbase.com/elderly-care-articles/paying-for-assisted-living-2740629.html

About the Author

SeniorHomes.com is a free resource for people looking for senior housing or senior care for a loved one or themselves. Browse valuable articles to help you through or search or find assisted living, independent living, Alzheimer\’s care, or a retirement community with our nationwide directory.

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Paying For Elder Care Just Got Easier

Friday, July 23rd, 2010

By: Chuck Bongiovanni

Published: June 22, 2007

It’s not a surprise that thousands of families across the nation are facing the challlenges of an aging population. The “sandwich” generation, those who are caring for their children as well as their parents, have been feeling the financial pinch of caring for loved ones. Paying the high cost of Elder Care can cost a family thousands of dollars a month. Too many families are unaware of how utilizing a loved one’s life insurance policy can not only pay for Assisted Living and Nursing Home care, but can maintain the standards of living for the remaining spouse.

Not too many financial specialist inform their clients who have purchased life insurance policies with a death benefit over $250,000 that they can utilize a somewhat unknown option on their life insurance to pay for the high cost of Elder Care. It is called a Life Settlement and it can fully take the financial burden off of families who struggle to keep their loved one in a quality facility.

A policy owner has the right to sell his or her life insurance policy to an institution for signifantly more than the cash value of the policy. For example, a life insurance policy with a $500,000 death benefit and a $75,000 cash value can be purchased for $250,000 and up. This money can be used now to pay for assisted living, nursing homes as well as in home services also. The procedure is relatively quick with minimal paperwork. It is senseless to struggle financially to pay for the needs of elderly loved ones when they can utilize their life insurance policy to pay for care. Many, many times life insurance policies lapse when a loved one goes into assisted living or a nursing home just out of financial neccessity as well as through medicaid planning.

Instead of letting a policy lapse or into surrendership, smart families are looking into life settlements as a funding source for the high expense of Elder Care.

Chuck Bongiovanni, M.S.W. has been helping seniors and their fanmilies for over 20 years in the assisted living industry. Chuck can help your family investigate your options for paying for Elder Care through a Life Settlement. You can go to his website at http://www.LifeTransitionsOnline.com or call him directly at 480-703-7005.

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Making Senior Health Insurance Options Understandable

Tuesday, March 2nd, 2010

With the rising cost of healthcare and the current economic crisis, choosing the right senior health insurance plan is more important now than ever.  Picking an affordable senior health plan that fits your unique needs can help you enjoy your golden years by providing financial stability and peace-of-mind.  However, the array of choices for senior health insurance plans – such as Medi-gap, Medicare Advantage and Prescription Drug Plans, just to name a few – can be overwhelming.   The amount of information is vast, and even finding that information can be a daunting task.  Fortunately, there are steps you can take to choose the right senior health plan with confidence.

Tips for Choosing the Right Senior Health Insurance Plan

 

If you follow a few simple steps, understanding your senior health insurance options – and selecting the best one for your needs – can be relatively uncomplicated.

  1. Understand the basics.

 

Know what your options are.  There are numerous insurance choices for seniors, including original Medicare, Medicare Supplement, Medicare Part D (for prescriptions) Medicare Advantage plans and Special Needs Plans for persons with disabilities and low income.  Each option has its own benefits and drawbacks, so being aware of all your alternatives allows you to select the best one.  Also, keep in mind that you can combine multiple plans to provide the coverage you need.

  1. Keep the big picture in mind.

 

Instead of feeling overwhelmed in the decision-making process, keep in mind what your ultimate goals are in purchasing a senior health insurance plan.  For example, know your

deadlines and when you would be able to switch from the plan in the future.  Keeping your big-picture goals in mind will keep you from becoming bogged down in irrelevant options and leave you feeling good about having made a decision on a health insurance plan.

  1. Enlist the help of a qualified expert.

 

Finding an experienced senior health insurance specialist is one of the best ways to obtain comprehensive information on your senior health plan choices.  Having an expert that will guide you through the process of choosing a plan is essential. They provide you with easy-to-understand information and clarify any confusion you may have.  Moreover, some brokers offer in-person or on-the-phone consultations, which save clients the hassle of navigating the Internet. 

Selecting senior health insurance doesn’t have to be an exhausting task.  Just keep the basics in mind, get help if you need it, and prioritize your long-term goals.  When you select the best senior health plan for your unique needs, you can rest assured that your health care is covered.

http://www.articlesbase.com/insurance-articles/simplifying-the-complicated-making-senior-health-insurance-options-understandable-670943.html

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Caregivers and Seniors Get Tax Deductions

Thursday, February 11th, 2010

With tax season upon us I wanted to remind families that people who care for qualifying relatives can claim tax deductions and credits for out-of-pocket medical expenses. For you to qualify for caregiver tax deductions and credits, the person you are caring for must be a spouse, dependent, or qualifying relative, as well as a U.S. citizen or resident of the United States, Canada, or Mexico. A qualifying relative includes a parent, stepparent, father-in-law or mother-in-law, or any other person who lived with you all year as a member of your household.

Medical deductions can include dental treatments, the cost of transportation needed to get to a medical appointment, health insurance premiums and qualified long-term care services. For a full list of allowable medical expenses, see Publication 502 (2009) at the IRS web site . Some key rules to remember are -

  • You can only deduct medical expenses if they exceed 7.5% of your adjusted gross income.
  • To qualify for a dependency deduction, you must pay for more than 50% of your qualifying relative’s support costs. The relative only qualifies as a dependent if he or she meets the gross income and the joint return test. Dependency Deduction   If your relative doesn’t qualify as a dependent because of these tests, you cannot claim a dependency deduction, but you can still claim his or her medical expenses.
  • If a group of people are sharing costs for a qualifying relative, a multiple support declaration (IRS Form 2120) can be filed to grant one family member the exemption.
  • Long-term care medical expenses including diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative, and maintenance and personal care services are deductible if the services are required by a chronically ill individual and a licensed health care practitioner prescribes the care. An individual is chronically ill if unable to perform at least two of six activities of daily living, which are eating, toileting, transferring, bathing, dressing, and continence. An individual who is cognitively impaired and requires substantial supervision is also considered chronically ill.
  • Nursing services performed in a nursing home, an assisted-living facility, or similar care facilities are also deductible expenses if the person is principally receiving care for medical reasons. However, if a person is staying at a nursing home, an assisted-living facility, or similar care facility only for custodial reasons, only medical expenses are deductible; in this instance, room charges and meals are not deductible. Nursing services performed at home are deductible expenses. If the patient is chronically ill, certain maintenance and personal care services are also deductible.

Senior citizens and caregivers should be aware that premiums paid for qualified long-term care insurance contracts are also deductible medical expenses. According to the IRS, the contract must be guaranteed renewable; not provide a cash surrender value; not pay costs that are covered by Medicare; provide that refunds, other than refunds upon death, surrender, or cancellation of the contract, and dividends are used only to reduce future premiums or increase medical benefits.  For 2009, long-term care premiums are deductible up to the following dollar amounts: for individuals age 61 to 70 the limit is $3,180, for individuals 71 and older the limit is $3,980.

Many state governments also offer tax credits and deductions for caregivers on state income tax forms, so it pays to know your individual state’s rules.

By nature, tax rules are complex. It’s important to consult a tax attorney or accountant versed in eldercare tax issues about your specific situation before finalizing your taxes. The AARP also offers free assistance and tax tips for seniors through its Tax-Aide program; go to http://www.aarp.org/money/taxaide/.

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Caring for Senior Veterans – VA Long Term Care Benefits

Tuesday, February 9th, 2010

In the month of February we celebrate Presidents Day in honor of two great United States Presidents; George Washington and Abraham Lincoln. Both were heroes of wars fought on U.S soil for freedom and unity of our great country.

The United States has fought many wars throughout the world since that time to keep freedom here at home and continues to do so. From the beginning our country we established a program to care for the men and women of our military who fought in those wars.

The veterans aid and attendance program goes back to 1636 when Pilgrims of Plymouth Colony fought with the Pequot Indians. The Pilgrims enacted a law from English law that reads, “If any man shall be sent forth as a soldier and shall return maimed, he shall be maintained competently by the colony during his life.” In 1789 U. S. congress passed as law that pensions were to be provided to disabled veterans and their dependents and in 1811 the first domiciliary and medical facility for veterans was completed. 

There are Veteran’s hospitals, out-patient centers, nursing homes, residental care facilities and Veteran’s homes throughout the country.  When it comes to long term care priority is given to war disabled veterans who need nursing home care.  There is another benefit to help Veterans pay for long term care  called  the Aid and Attendance Improved Pension.  Veterans or their single surviving spouses can become eligible if they have a regular need for the aid and attendance of a caregiver or if they are housebound. Aid and Attendance care is defined as assistance with bathing, dressing, eating, medications, toileting, walking or a danger to oneself because of memory impairment.

The benefit is $1656 per month for the Veteran, $1949 for both the veteran and their spouse or $1056 for the surviving spouse, tax free for life.  To receive the Pension, a veteran must have served on active duty, at least 90 days, with at least one of those days during a period of war. Their must be a discharge under conditions other than dishonorable. Single surviving spouses of such veterans are also eligible. If younger than 65, the veteran must be totally disabled. If age 65 and older, there is no requirement for disability. There is no age or disability requirement for a single surviving spouse.

To be eligible these must be an expense for care either provided by an in-home care provider, family member or assisted living.  VA also looks are income vs expenses and the veteran’s assets.  Unlike Medicaid VA allows redistribution of assets in order to qualify.  It is very important the you seek the assistance of a trained professional who also knows Medicaid laws before giving any assets away. 

The secret for receiving a successful award for aid and attendance or housebound ratings is not in filling out the form but in knowing what documents and evidence must be submitted with the application. Knowing the secrets for a successful award — with the special case of long term care recipients — is 95% of the battle. Even though the form is challenging, filling out and filing a claim is a formality.  A knowledgeable consultant can provide information to shorten VA’s decision window of 6 to 12 months to possibly 3 or 4 months. A Veteran’s benefit consultant also understands how to maximize the benefit or avoid a denial. The consultant can also provide guidance for meeting the asset test. Finally, a consultant can provide the actual strategies for reallocating assets and he or she can arrange for trusts or income conversions to allow for the best possible accommodation of assets for beneficiaries thus avoiding or reducing taxes, family disputes and Medicaid penalties.

Contact us today to help you get the benefits you deserve.  Call 866-837-2659 or info@agingavenues.com

http://www.agingavenues.com/topics/aid-attendance-pension-for-veteran-s-and-spouses

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Is Medicaid Planning Ethical?

Monday, July 20th, 2009

As in any area of consumer spending, knowing what to look for and what strategies to use in arranging for paid care services can often result in saving money.

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Are Caregiver’s Responsible for Their Parent’s Debt in Indianapolis, IN?

Thursday, April 23rd, 2009

Are Caregiver’s Responsible for Their Parent’s Debt?

I’m sure many adult children of aging parents and caregivers think about this question a lot.

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Tax Free Money To Help Seniors

Thursday, March 12th, 2009

When a senior, over 62 years old, takes out a reverse mortgage, he or she has several options with regard to how to take the proceeds. First of all, reverse mortgage proceeds are tax free! For many seniors this is a huge benefit, especially if they are now taking out taxable funds from 401K /IRA accounts.

The first option for taking funds is to take monthly income for as long as the senior lives in the property. A check can be sent each month, or it can be direct deposited into their checking account for convenience. The amount they can take will vary depending on age and property value and equity. Your reverse mortgage lender can also set up monthly income for a specific time frame. Let’s say the senior has a piece of property they will be selling in a few years. The senior can take more monthly income for a shorter period of time knowing they will have more income later.

The second option for taking funds is to take them as a lump sum. The senior should be very cautious that they put these funds into something safe. There are horror stories about seniors taking out a reverse mortgage and then investing in some kind of annuity which ties up their money and they don’t have it when they need it. Remember, even though the lump sum is tax free, any interest earned on that lump sum, could be taxable.

The third option is actually the most popular. This is to take the money in the form of a line of credit. The senior can take out funds whenever they need them , say for property taxes, or a home repair and the rest of the money that stays in the line of credit actually grows tax free! This way, the senior benefits from the growth on the money they are not using.

The last option is to combine these other options. For example, I have a customer who elected to take some of her money upfront and the rest as monthly income. I have other customers who take the line of credit but take some as an upfront lump sum.

Which option is right for you? Every situation is different. Discuss all these options with your reverse mortgage specialist. Make sure you chose the option that works best for your situation.

Brenda Wheeler, Reverse Mortgage Specialist, M & I Bank Indianapolis

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Stimulus Package Helps Seniors

Thursday, March 12th, 2009

Everyone wants to know what the “stimulus bill” has in it for them. Well, thanks to that bill, there is at least one good thing for anyone considering a reverse mortgage. The maximum loan amount for a reverse mortgage has been increased from $417,000 to $625,500. While this may not thrill everyone, there are many seniors who have enjoyed more expense homes but were kept out of the reverse mortgage option due to low loan limits. I speak to seniors every week and many of them were pretty well off in their retirement, however, with the stock market plummeting and their CD rates down around 2%, they find themselves looking for options to finance their retirement. On top of that, with the possibility of GM and Chrysler going into bankruptcy, retired auto workers are looking at a possible reduction in their incomes or benefits. If you would have asked these folks a year ago, no one ever dreamed there might be an issue with their retirement.

Let’s look at an example: A couple who are 75 and 73 respectively who live in a home valued at $550,000. Under the old rules, that couple could have received $275,000 in tax free reverse mortgage proceeds (after all expenses were paid). Now, with the new limit, they can receive $360,872 in benefits. This is an increase of over $85,000.

Maybe it’s time to contact your Reverse Mortgage Specialist and get a free-no obligation quote to see what you might be eligible to receive. Everyone’s situation is different so it’s best to get the facts based on your scenario. Reverse Mortgages are available to any senior over 62 who has sufficient equity and who lives in their own home. There is no income or credit score requirement to qualify. It’s your money – make it work for you !

Brenda Wheeler, Reverse Mortgage Specialist, M & I Bank Indianapolis

Posted in eldercare issues, financial help for seniors, how to pay for senior care, reverse mortgage, stimulus package | 1 Comment »