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Paying for Elder Care: Private Financing vs. Medicaid

elderly man sitting in a recliner holding a walking cane and smiling

Which Option is Best for You?

For many people, paying for elder care can seem daunting. With the rising costs of long-term care and the complexity of health insurance coverage, it’s essential to understand all your options before making any decisions. One option is paying for elder care through Medicaid; another is paying with private financing. In this blog post, we will explore both options in detail so you can make an informed decision about how to pay for your loved one’s care.

Medicaid

Medicaid is a health insurance program sponsored by the federal government and each state. It provides coverage for individuals with low incomes who meet specific eligibility requirements. Medicaid can be used to pay for long-term care in a nursing home or assisted living facility and in-home care services such as skilled nursing, personal care, and home health aides.

To qualify for Medicaid, there are income and asset limits you must meet first. These limits can vary from state to state, so it is crucial to check with your local Medicaid office for more information. Additionally, if you pay for care out of pocket or have private insurance, you may not be eligible for Medicaid coverage.

Private Financing Options

Private financing is another option for paying for elder care. This can include paying out of pocket, using long-term care insurance, or setting up a private trust fund.

Paying out of pocket can be expensive, but it can be the best choice if you have the resources to cover all the costs. It also offers the most flexibility regarding what type of care you can receive and where.

Long-term care insurance is another option for paying for elder care. This will cover a portion or all the costs associated with long-term care, including home health aides, nursing home stays, assisted living facilities, and more.

Finally, a private trust fund is another option for paying for elder care. With this option, you can set up a trust account and designate funds to pay for your loved one’s care. This can be a great way to ensure that your loved one has the best possible care while also protecting their assets from being depleted by paying out-of-pocket.

Work With an Elder Law Attorney

Choosing the best option for paying for elder care can seem overwhelming, but it is vital to understand all your options before making a decision. You should also consult with an elder law attorney to help you navigate the legal and financial aspects of paying for long-term care.

The team at Crain & Wooley is here to help you understand your options and make the best decision for your loved one.

Learn more about our elder law team or schedule a consultation with an elder law attorney by calling (972) 945-1610 or visiting our website.
 

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