Options for Paying for Home Care

One of the first questions seniors & caregivers in Minneapolis and throughout Minnesota ask when considering home care is how much it’s going to cost and what are the options for paying. It’s a common misconception that Medicare or insurance companies will pay for home care in every senior’s situation. Many caregivers are working tirelessly to assist their loved one during failing health or a medical crisis and wonder, “What services will Medicare pay for?” If it’s determined that Medicare or private insurance won’t cover home health care, the idea is often abandoned but with a little persistence and creativity, other funding sources can be uncovered.
 
1.    MN Veterans Aid & Attendance Pension Benefit. This is Minnesota’s best kept secret for paying for home care. Here is a list of services to consider. The long term care benefit offers a disability income to veterans who served during a period of war or to their surviving spouses. For a pension benefit for veterans younger than 65, evidence of total of disability must be provided. Senior veterans 65 and older do not have to disabled. There are several factors that determine the amount of each senior’s monthly stipend including income limit & medical need. Go to our Links & Resources page for more information.

2.    Medicare or Medicaid (Medical Assistance). According to Medicare.gov, Medicare generally doesn’t pay for long-term care activities such as eating, bathing, dressing, and grooming. Medicare will help pay for skilled nursing or home health care if you meet certain conditions. For instance after a medical incident such as breaking a hip, Medicare might cover home rehabilitation, physical therapy, occupational therapy, speech or nurse’s visit. Benefits will end when the senior recovers or is no longer making progress. If an elderly or disabled person has a skilled need such as a catheter & their doctor’s approval, long term nursing care can be paid for. Get a link to a handy eligibility tool to see if you or your loved one qualifies.

Medical Assistance (MA) is Minnesota’s largest publicly funded health care programs.  Senior can apply through their local county human service offices. More than two-thirds of seniors enrolled receive all their health care through health plans. The remaining get care on a fee-for-service basis and home care providers bill the state directly for their services. View more information.


3.    Insurance. Private health insurance may pay for some aspects of senior services in your home but long term care insurance actually pays for personal care such as bathing, toileting and transferring. There are many elements of long term care insurance to consider and it’s important to get educated by a professional. The amount of daily benefits, pay out options and inflation riders may increase your premiums considerably. It’s a good idea to review how much home care costs in Minneapolis today in order to determine how much money you’ll need. Review our link to a Long Term Care Insurance resource.

4.    Reverse mortgage. A reverse mortgage allows you to access the equity in your home without having to sell your home or make monthly loan repayments. Seniors can use this money any way they’d like, including using it to pay for home care. Advantages are that your income and credit are not considered in determining eligibility and the proceeds of a reverse mortgage are tax-free. A disadvantage is if you’d like your family to inherit the home, they must refinance or pay off the debt. There are also closing costs that might make a reverse mortgage cost prohibitive if you don’t plan on living in the home for many years. Get more information.