Ivy Reyes 6/18/24 Ivy Reyes 6/18/24

Interesting Survey Results on Long-term Care Services and Support

The Kaiser Family Foundation (KFF) conducted a survey on 1,573 adults in the U.S. in May 2022 to gather sentiments regarding long-term care services and support for older adults and people with disabilities who require assistance with activities of daily living.

Fewer than half of adults (43%) say they have ever had a serious conversation with a loved one about who will take care of them if they need help with daily activities in the future.
Even fewer (39%) have talked about how the cost of such care would be paid for.
Four in ten adults (43%) say they are not confident that they will have the financial resources to pay for the care they might need as they age.
Only 28% of adults ages 50-64 say they have set aside money that could be used to pay for future living assistance expenses.
Only 48% of adults 65 and older say they have set aside money that could be used to pay for future living assistance expenses. So more than half in this age group has not put any money aside for this.
Nursing home costs are estimated to be $100,000 for one year on average in the U.S. Compared to the estimated $60,000 for one year assistance for in-home care.
Medicare coverage of long-term care is limited. Medicaid is the main source of coverage for these services. Four in ten adults incorrectly believe that Medicare is the primary source of nursing care or home care coverage.
Almost half (45%) of adults who moved into a long-term care facility, or had their loved one move into one, say they encountered unexpected costs for things they thought were included but were added on as extra charges by the facility.
About half of adults (51%) found it difficult to find nurses or aides to help with everyday activities. Compared to 61% who found it difficult to find a facility to meet their or their loved ones needs.
More people are satisfied with the quality of care they received from in-home care versus long-term facility care. Only 68% of adults with personal experience or sufficient knowledge of a loved one’s time in a long-term care facility is “somewhat” or “very” satisfied with the quality of care they received, compared with 78% of those who used in-home care that are satisfied with the quality of care they received from a nurse or aide.
More people are satisfied with the cost of care of in-home care versus long-term care facilities. 63% of adults having experience with in-home care versus 48% of adults having experience with long-term care facilities.

Source

Ivy Reyes 5/6/24 Ivy Reyes 5/6/24

Ways to Pay for In-Home Care

It is important to explore the ways to pay for in-home care so you can help yourself or your loved one be more prepared.

About 10,000 adults will turn 65 every day until the year 2030 in the U.S. and 7 out of 10 of these people will need long term care. Many of the elderly prefer to hire in-home caregivers so they can stay in their home for as long as possible. This allows them to be in familiar surroundings and gives them a little bit more independence while still getting the care that they need. The median cost of home health aide service in New Jersey is $34 (this varies based on location and type of services). 24/7 care can cost around $5,712 per week, or $24,820 per month. This is a considerable cost for people who have little or no income coming in during their golden years. It is important to explore the ways to pay for in-home care so you can help yourself or your loved one be more prepared.

Personal Savings

Over 60% of home care services are paid from personal funds. This can be from:

retirement income
personal savings
401k plan
pensions
proceeds from selling a home
proceeds from selling stocks or bonds

Pooled funds from family members

If personal funds are limited, the children or family members may decide to pool together their resources to help pay for home care. It is important for these family members to sit down and have a conversation about how much each one will be contributing, who will be collecting the funds, and how often to send the money. This will help set everyone’s expectations and avoid miscommunications.

Long-term care insurance

Some people have purchased long-term care insurance policies in advance that can help pay for home care. The current landscape for long-term care insurance has changed considerably in the last few decades. Many of these policies have gotten too expensive and the offerings have changed. If you or your loved one has this, make sure you fully understand what it covers and for how long.

Medicaid

Medicaid may cover in-home care services for low-income seniors. This may be offered through three different forms:

Your state’s regular Medicaid program (classic/original Medicaid) - Every state offers this in one form or another; individuals need to meet eligibility requirements; no waiting lists.
Home and Community Based Services (HCBS) Medicaid Waivers (Section 1915(c) Waivers) - Each state has different eligibility requirements; qualifying doesn’t mean automatic receipt of benefits; there’s usually a waiting list.
Section 1115 Research and Demonstration Waivers - states use this to expand Medicaid coverage; may have a waiting list

Since different states have different eligibility requirements and different coverages, it is necessary to understand your own state’s offerings.

Veterans Affairs

Veterans and their surviving spouses can get benefits from the U.S. Department of Veterans Affairs that may pay for in-home care. Eligibility requirements include, but is not limited to the following:

Be a veteran or spouse of a veteran
Have a non-service related disability
Be enrolled in VA health care
Is unable to perform at least two activities of daily living
Have served ninety consecutive days active duty, with at least one day during wartime
Hold an Honorable Discharge status
Live in an area where the program is available

Personal funds, family members chipping in, long-term care insurance, Medicaid, and Veterans Affairs are just some of the ways that individuals can pay for their in-home care. If you have the benefit of time, it would be wise to consider these options and plan ahead for yourself or your loved one.

Sources: