Home healthcare is a healthcare model where services come to the comfort of your own home. You don’t have to worry about going to a hospital, traveling from place to place, or any of the other inconveniences that come with trying to see a doctor or other healthcare professional. Home healthcare can also include services that have to do with day-to-day living. This can include cooking, cleaning, grocery shopping, and just keeping you company.
There are many advantages to home healthcare. It is convenient, those with long-term illnesses that may leave them restricted in where they can go can receive treatment in the familiarity of their own home, and you can receive more one-on-one care than if you were to receive care in a facility or nursing home.
Home healthcare can be for a variety of ages, needs, illnesses, injuries and conditions. You just have to find the right fit for you and your family. But, one of the things that can be intimidating about home healthcare is the cost. It has to cost more to have someone come to your home and give you the services you need, right? Maybe not. We are going to talk about the ways to pay for in-home care so you can decide if it’s the right fit for you and how you can make it economically conducive for your lifestyle.
How much do home care services cost?
When deciding if home health is right for you, you may be wondering how much they cost? It really depends on your needs and what services you are asking for, but the median cost of home healthcare is $24 an hour. For non-medical home care, like cooking cleaning and other homemaker duties, the average cost is $23.50.
If you only require an hour or so of work a week, then this may be an extremely affordable option. However, if you require around the clock care, then these costs can add up quickly. Other costs may factor in, such as inflation, gas, cost of living, and other influences surrounding the ease of providing you care.
What insurance covers in-home care?
The good thing about healthcare (most of the time) is if you are insured, then you can rely on the insurance companies to cover some services. Home health can be included in certain insurance policies. It may be beneficial for you to look into your insurance policy, or other policies that would include costs such as insurance.
Medicare
Medicare does offer some home health coverage for people who are 65 and older, or certain individuals who are younger and have specific disabilities, as well as end-stage renal disease. When ordered by a physician, Medicare Parts A and/or B will pay for medically necessary services that are provided in the home for a short period of time. Medicare will NOT cover homemaker serves or non-medical care (meal prep, bathing assistance, housekeeping, etc.) So, if you have medicare, be sure to understand the difference between what will be covered, and what won’t be. Medicare also will NOT cover around the clock care. So it may be better to have a health professional during the day and family members or caretakers in the evenings, or some other type of transition.
Private Insurance Companies
Traditional health insurance may cover home care. Private insurance companies may have plans that pay for select elder care services. However, this coverage varies from plan to plan. Most forms of private insurance will not pay for non-medical home care services either. Also, in-home skilled care is also rarely covered 100%.
Medigap
Medicare Supplement Insurance (Medigap) is an additional policy that works alongside original Medicare benefits. It is purchased from a private company to pay for the “gaps” not covered by Medicare. Neither Medicare nor Medigap is designed to cover long-term care though, so both are still only going to cover the short-term medically necessary services.
Long-term Insurance Benefits
Long-term insurance benefits cover in home care and can be purchased from private companies to cover the costs of nursing home care, assisted living and home health care. Benefits vary depending on the plan, so make sure you really understand what the plan is and what is covered in the policy. Otherwise, you could be expected to foot the bill for extensive medical needs.
When it comes to purchasing long-term insurance policies, it’s important to plan ahead. Premiums are lowest for healthy individuals in their fifties or sixties. Older seniors with chronic illnesses or serious medical conditions are unlikely to qualify for coverage.
Using life insurance to pay for home care
There are a few ways that seniors who have life insurance policies can use them to pay for their home healthcare. Some options include taking a loan from the policy’s cash value or surrendering the policy entirely in exchange for the cash value.
Some policies may feature an accelerated death benefit rider, which is a cash advance that is subtracted from the death benefit amount the beneficiary receives upon the death of the policy holder. The owner of the policy must be terminally ill with a limited life expectancy or deemed unable to perform the activities of daily living. The policy is not surrendered at the time of the advance, so payments still must be made on it. The insurance company will require physicians’ statements and medical records that demonstrate the severity of the illness or injury before they will pay out the early benefits.
Veteran benefits that cover in-home care
The VA has health benefits that help them pay for home care. The Veterans Health Administration Standard medical Benefits Package may be used to provide various levels of home care services as an alternative to nursing home care, and as a way to deliver respite care for veterans their family caregivers. VA pensions are a source of funding that can help cover the costs of home care for veterans and their surviving spouses. The VA’s Skilled Home Health Care Services, Homemaker and Home Health Aide Services and home-Based Primary Care programs are available to all veterans who meet eligibility requirements for standard benefits.
There are many options to pay for home healthcare. Find the best option for you, speak with your insurance company, and talk with our representatives to find the best option for you and your family.
Resources:
https://www.agingcare.com/articles/paying-for-home-care-155405.htm
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