Nursing Home Costs and How To Pay Them

Private Pay Options

For nursing home care, people often have to turn to income acquired through private means, such as personal savings accounts, stocks, selling their homes, or even pensions. These options have some advantages and some drawbacks. 

• Savings Accounts: These are usually the first things to be exhausted when paying out-of-pocket costs for retirement or nursing homes. The funds can come either from the person in the nursing home or from family members. 
• Retirement Income and Pensions: Much funding comes from here, especially since most nursing home patients are beyond retirement age for social security benefits and their jobs. 
• Stocks: Selling stocks is another option, and some tax benefits are worth taking advantage of. However, it would help if you spoke with your financial advisor before dipping your toes into this water. 
• Selling Your Home: Sadly, this is sometimes a necessary expenditure to care for our elderly loved ones, but it happens far more often than you would think.
• Online Loans: These are excellent fast loans that you can utilize in a pinch, especially when waiting for the return value of liquidated assets. Simple Fast Loans is a company that offers online loans of up to $3,000, with no collateral required. 

Private pay options are often the first thing we turn to for major expenditures, especially in cases where a loved one needs a nursing home alternative. This is because they can no longer be home alone or because family caregivers have exhausted their capabilities. 

Pros of Private Pay Options:

• Freedom to select any facility, regardless of Medicaid acceptance.
• Access to higher-end facilities with better amenities and private rooms.
• No waiting periods for Medicaid approval or eligibility determinations.

Cons of Private Pay Options:

• Significant financial burden, potentially depleting savings and assets quickly.
• Private health insurance and Medicare provide limited long-term care coverage.
• Large expenses can affect inheritance and financial legacy for heirs.

What Is the Cost of Long-Term Care?

In terms of the overall cost, long-term care options are staggering in the amount of money necessary to keep a family member in a nursing home. However, your only other options are personal or in-home care, which is expensive in and of itself, especially if it is 24/7 in-home care. 

Key Differences between Assisted Living and Nursing Homes

Assisted living provides personal care and assistance with daily activities like bathing, dressing, and medication management. Residents typically have their own apartments or rooms. 

Nursing homes offer higher medical care with 24/7 nursing staff, catering to individuals with significant health issues requiring constant monitoring and medical attention.

Overall, assisted living is less expensive. The average costs range from $3,500 to $4,500 per month.

On average, nursing home care for a partially private room costs nearly $100,000 per year, while a private room nursing home option costs a few thousand extra dollars. But, of course, there are caveats, depending on where you live, the degree of care needed, and the nursing home's staffing levels. 

Long-Term and Short-Term Payment Options

There are multiple long-term solutions, but, as with everything, stipulations often must be met first. 

Medicare

Medicare is generally limited to short-term nursing home costs and won't extend beyond that. It also doesn't cover the cost of living with help and is probably insufficient to cover expensive medical procedures or health care needs.

Medicare is on the low end of the spectrum when seeking long-term options. However, it can cover you while you sort and organize for a more permanent solution.

If Medicare is your only option, remember that it won't cover many things you would probably consider necessities in assisted living.

• For nursing home care to be on the table, it must be ordered and signed off on by a physician.
• Three days in an inpatient hospital is a prerequisite.
• You will have to locate a nursing home that qualifies for Medicare.
• You have a short amount of time before Medicare will no longer pay the costs.

It's hard to say exactly when or at what monetary amount Medicare will cut off because every state and the costs of nursing homes across the country differ. So, that will have to be determined as you speak to someone with Medicare. 

Pros of Medicare: 

• No out-of-pocket costs for the first 20 days.
• After the first 20 days, Medicare covers most costs, with a daily copayment required from the patient.
• After the first 20 days, Medicare covers most costs, with a daily copayment required from the patient.

Cons of Medicare:

• Coverage is limited to 100 days per benefit period and only after a hospital stay.
• Care must be medically necessary and prescribed by a doctor.
• Medicare does not cover custodial or long-term care, leaving significant out-of-pocket expenses for extended stays.

Medicaid

Only financially qualified and senior citizens can take advantage of Medicaid. A decent retirement plan and pension will likely disqualify someone. However, even if they qualify, Medicaid covers only 45% and 65% of the overall expenses. 

The rest will have to be paid for from other sources. For Medicaid to pay, the nursing home must be a Medicaid-qualified facility, so your options might be slightly limited there. 

The other problem with Medicaid is that the rules change annually, sometimes significantly. For example, monthly income cannot exceed $2,250, but if the senior citizen owns a home, the home is not included as an asset. 

Pros of Medicaid: 

•  Medicaid covers long-term nursing home care for eligible individuals.
• Reduces the financial burden on families, especially those with limited income and assets.
• State and federal funding provides a stable funding source, ensuring continuous care.

Cons of Medicaid: 

• Strict financial criteria and asset limits must be met to qualify.
• Not all nursing homes accept Medicaid, potentially reducing the choice of facilities.
• Medicaid may seek reimbursement from the estate of the deceased beneficiary.

Veteran's Assistance

When it comes to veterans, there are generally two options, depending on whether the veteran has seen combat and was enlisted during a time of war. Veterans are qualified as either three- or five-star veterans, with five-star veterans having seen combat. 

Those two extra stars go a long way in terms of benefits down the road. The first option is the Aid and Attendance benefit that we mentioned above. This benefit will usually cover the cost of a nursing home, but only if the veteran's monthly income is legitimately limited.

Also, when the Aid and Attendance benefits are applied for, it must be proven that the applicant requires the assistance of someone else to go about their daily routines. 

The second option is something that all veterans can take advantage of. However, there are a few stipulations. For example, the veteran applying has to be 70% or more disabled, and there has to be enough space or an available room in the state nursing home. 

Also, this nursing home assistance can only be used at VA nursing homes. 

Pros of Using VA Assistance:

•  Provides significant financial relief for eligible veterans and their families.
• It may cover various services, including medical and personal care.
•  Access to specialized VA nursing homes that cater to veterans' specific needs.

Cons of Using VA Assistance:

•  Strict criteria based on service history, disability status, and income.
•  They may have lengthy waiting lists or limited spots in VA facilities.
• Navigating the application and approval process can be time-consuming and challenging.

How Can Simple Fast Loans Assist?

Simple Fast Loans provides customers with supplemental loans when only short-term care is provided, and a long-term solution is considered. 

They also offer easy and affordable monthly payments, and you never have to leave your house to apply, receive your funds, or make your monthly payments.

All Things Considered

While there are many options for affording nursing home care for your loved one, not all of them are expedient, and some only cover partial costs. However, if you need cash quickly or, at least until you have acquired the proper funding, Simple Fast Loans will promptly get you the money you need.