The Cost of Nursing Homes
Fact: 40% of people turning 65 will need a nursing home. Some full-time, others off and on. Many will need home care and other services as well.
Lawyers and other professionals often pitch creative ways to avoid spending all the person's assets. There is no simple way. The sad cases occur when it's too late. Lawyers see siblings come in after the parent(s) have been placed in a nursing home and their assets are dwindling fast. They advice pre-planning to protect assets from nursing homes. You will find asset protection lawyers in every state. For the most part it's Medicaid that can help if structured right.
"One of the most difficult transitions people face is the change from independent living in their own home to living in a long term care residence or "nursing home".
NJ Medicaid Attorney F. Niemann
The costs (as per 2010) for nursing homes, assisted living facilities and some in-home care services have risen for the fifth consecutive year and might continue to rise unless more long-term care workers can be found, according to a new survey by Genworth Financial.
A private room in any US nursing home now costs over $76,000 a year or $209 daily, a 17 percent increase since 2004. A semiprivate room in a nursing home is now close to $70,000.
Pending on where you live in the US - the cost of assisted living facilities is shooting up even faster, having risen 25 percent since 2004 to a current average of $36,090 a year for a one-bedroom unit. Assisted living costs ranged from a high of $4,921 a month in New Jersey to a low of $1,981 a month in Arkansas.
How can you pay for nursing homes?
Medicare
Under certain limited conditions, Medicare will pay some nursing home costs for Medicare beneficiaries who require skilled nursing or rehabilitation services.
Medicaid
Medicaid is a State and Federal program that will pay most nursing home costs for people with limited income and assets.
Medicaid attorney K. Gabriel Heiser states:
"Most people know that in order to qualify for Medicaid coverage of a long-term stay in a nursing home, the nursing home resident cannot own more than $2,000 in cash or other "countable" assets. But if you're married, and one spouse is going into a nursing home and the other is remaining "in the community" (i.e., continuing to reside at home), how much can the so-called "Community Spouse" retain? That amount is determined by a combination of both federal and state Medicaid laws. (Note that for these purposes it doesn't matter whether assets are titled in the sole name of the nursing home spouse, the Community Spouse, or jointly in both names.)"
Managed Care Plans
A managed care plan will not help pay for care unless the nursing home has a contract with the plan.
Personal Resources
About half of all nursing home residents pay nursing home costs out of their own savings.
Medicare Supplemental Insurance - or Long Term Care Insurance
This is private insurance.
Medicaid currently pays the bills of over 50% of all nursing home residents.
While that might sound like a good thing, think about the other 50% of nursing home residents whose bills are not paid by Medicaid.
We advice seeking the counsel of a qualified Medicaid/Nursing Home attorney before you need one.
"The Cost of Nursing Homes", was submitted 01/2/2012 under category Family Concern.
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