There are four main ways to pay for skilled nursing home care:
- Traditional Long-Term Care Insurance – If you are fortunate enough to have this type of coverage, it may go a long way toward paying the cost of a nursing home. There are also Hybrid Long Term Care Insurance policies, which are a combination of self insuring using life insurance, annuities or a combination of both with a long term care rider.
- Personal Income and Assets – This is the method many people are required to use if they haven’t protected their money and have no long term care insurance. Quite simply, it means paying for the cost of a nursing home out of your own pocket. Unfortunately, with nursing home costs ranging from $8,000-$12,000 per month, few people can afford a long-term stay in a nursing home. This is something we can often avoid with proper asset protection planning.
- Medicare – This is the national health insurance program primarily for people 65 years of age and older. Medicare may provide short-term (up to 100 days) assistance with nursing home costs if the beneficiary requires short-term rehab or skilled nursing services after a hospital stay.
- Medicaid – This is a federal and state funded and state administered medical benefit program which can pay for the cost of the nursing home if certain asset and income tests are met (see last month’s article). There are strict rules about who can qualify for this program.
At Ferrari, Butler & Moneymaker, we help our clients plan for how to pay for long term care while protecting their nest eggs. We have many asset protection strategies that we can use to plan ahead for Medicaid (even before an illness) as well as crisis planning if skilled care is imminent. Call or email us to set up an appointment.