We broke down popular ways to pay for home care into 5 main categories and descriptions.There are pros and cons to each choice, so be sure to do additional research before making your final decision.
1. Long-Term Care Insurance
Conventional health insurance does not cover non-medical home care, because users are not sick in the traditional sense. If you have a Long-Term Care Insurance policy in place prior to major changes in health, you are guaranteed to have home care coverage if or when you need it.
2. Veteran’s Benefits
Both the Veteran Aid & Attendance Pension program and the Veteran’s Choice Program offer families methods of meeting home care costs. But even if you don’t qualify for those, the VA allows households to deduct the annual cost of home care when calculating their pension benefit. This allows families earning more than the pension benefit to receive disability income from the VA.
3. Asset Conversion
Reverse mortgages, home equity lines of credit, Rex Agreements and loans from Equity Key are real estate-based asset conversion programs that provide financial solutions to home care needs. You might also consider life settlements, life care assurance beets, and practical settlements to convert life insurance policies to pay for home care.
4. Medicaid Programs
These are state-speci c initiatives designed to help keep seniors who qualify out of nursing homes and living comfortably in their own homes. These programs help cover the cost of home care in cases where home care can be provided at a lower expense than nursing home care.
5. Tax Credits & Cost of Care Reductions
Lowering your family’s tax burden can reduce the overall cost of care. See if your family member qualities for these programs: Alzheimer’s Respite Care, Elderly and Disabled Tax Credit, Federal Elderly Care tax Credit, LIHEAP – Aid for Energy Costs, Medical Expense Tax Deductions, NFCSP Respite Care, State Elderly Care Tax Credit,Veteran’s Administration Respite Care.