Although the expense of assisted living can be high, numerous methods exist to pay for it. Evaluating your financial resources, insurance options, and assistance programs can help you find affordable care.
Typically, assisted living fees include rent, taxes, utilities, housekeeping, and meals. Some also offer different levels of care for an additional cost.
Health insurance
Health insurance is typically cheaper than paying for care out of pocket, and it helps to protect against high medical costs. However, there is often still a cost when you access care, including deductibles, coinsurance, and copays (flat fees for certain services).
Each plan is different regarding what it covers and how much you will pay out-of-pocket. For example, HMOs may require you to see specific doctors and hospitals, while PPOs offer more choices of providers. Some plans also have a maximum out-of-pocket amount you will pay in a year. This is known as the “out-of-pocket maximum.” Some plans also have preventive visits, and vaccination coverage covered 100%.
Private long-term care insurance
Many seniors rely on private long-term care insurance (LTCI) to help pay for long-term care services. This type of coverage is a separate policy from health or disability insurance. Individuals or couples can purchase it.
Benz says people considering this policy should read the fine print carefully to understand the benefits and costs involved. Among other things, consider the waiting period, which can vary from two years to a lifetime. A longer wait may increase the premium.
Also, look for a policy that includes inflation protection. This feature ensures that the benefits keep pace with rising long-term care costs.
Veterans’ benefits
The VA administers several financial benefits for veterans and their families. These include disability compensation, pension, senior care, and extended care (sometimes called “long-term” care).
Survivors may be eligible for educational assistance under the GI Bill. They also may receive an annual clothing allowance for prosthetics and skin conditions that cause damage to clothes.
Generally, anyone discharged from active military service under honorable circumstances is considered a veteran for most VA benefit programs. Keeping a copy of your discharge paperwork and any other relevant information in a safe place is essential.
Talk to your family and friends.
Many families need help discussing assisted living in Tallahassee options. But if you plan, you can make the transition easier for everyone. Talk to your loved ones about their financial situation, and consider hiring a professional who can help you plan and navigate the process.
Having an accounting and payroll expert on staff is also a good idea. They can help you stay current with payroll and income taxes and prevent errors in your accounting system. It’s essential to have a system that generates and tracks vital financial indicators monthly. These metrics include occupancy rate, revenue, days cash on hand, and net operating income.
Medicaid
Medicaid is a joint federal-state program providing healthcare coverage to low-income individuals. While federal guidelines establish minimum required services, each state determines eligibility standards, decides what benefits are available, sets provider payment rates, and manages the program.
To be eligible for Medicaid, applicants must meet income and asset requirements. Countable assets include cash, savings, investment and retirement accounts, pension payments, IRA distributions, real estate, employment earnings, and interest on investments. Various legal strategies exist to reduce countable assets without spending down your home and other personal property. This is a complex area; you should consult a Medicaid planning specialist.
Short-term bridge loans
A bridge loan is a type of short-term finance that can assist you in temporarily meeting your cash flow requirements. They can help you buy a new home before you sell your current one or provide working capital until you secure long-term financing.
If you cannot make a 20% down payment on a conventional mortgage, you can also use it to avoid private mortgage insurance (PMI). This is a significant benefit for homeowners.
It’s essential to weigh all your options and consider a bridge loan’s pros and cons before applying. Talk with a home lending expert and ensure you understand all the terms and conditions.
