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Financing Home Health Care Services: What Are Your Payment Options?

Are you struggling to pay for your loved one’s home care services? Are the payment options available to you not enough to cover their home care expenses? You’re not alone. This is an issue countless American families face. Home care services for patients who need help after surgery or during illness can be cost-prohibitive for many. This article presents to you different home care payment options that can help you to offset these bills and gain peace of mind. 

Out-of-Pocket Payments
Most people pay for home care services by use of their savings, assets, and investments. Other popular private payment options include annuities, fundraisers’ contributions, and borrowed funds (acquired by taking out home equity loans or reverse mortgages). You could also liquidate possessions that aren’t in use, such as boats, luxury vehicles, and vacation homes. 

However, you should exercise some caution when using vital personal assets, such as homes, to secure some finances. You could end up losing your home in the process or fail to have enough set aside for other needs.

Private Long-Term Care Insurance 
Some long-term care covers in-home care services. The coverage provided differs depending on the provider. As such, you have to consider the kind of home care services covered by the policy. You should also consider its most significant lifetime payment and other benefits of the policy. 

Some policies have a limited elimination period, after which you will have to pay for the rest of the care expenses out-of-pocket. Such covers are beneficial, but you should learn about their shortcomings when dealing with long-term home care services. You may also opt to convert a senior’s life insurance policies into cash to offset their expenses.

Public or Government Programs
If you have an elderly patient who has a few assets and little-to-no income, then you’ll need to check the government’s Eldercare Locator, which can help you find a local help agency. The agency will assist you in determining the kind of programs that your loved one can qualify to join for in-home care services.

Examples of public programs that provide such help include the State Health Insurance Assistance Program (SHIP), Program of All-Inclusive Care for the Elderly (PACE), Medicaid, and Medicare. The kind of help that you can get from such programs varies. But don’t expect to get a single program that can fund all your in-home care expenses.

Ex-Service Members’ Programs
There are many veteran programs in existence, which can help service members and their families to cater for home care services. Eligible veterans can qualify to get services under many programs: Homemaker and Home Health Aide Care, Veteran Directed Care, Housebound benefits, and Aid and Attendance Benefits (AandA). To determine eligibility, you should contact the nearest VA benefits office to get full information on how to get help. 

Tax Exemptions
You may qualify for federal tax exemptions when paying for home care services or when hiring someone to deliver some help in providing dementia care services. If you’re providing extensive financial support to your live-in parent, then you can claim a tax break by showing that your parent is your dependent. 

An estimated 70% of U.S. seniors aged 65 and above may need long-term in-home care services at some point in their lives. This care can be costly if such people spend lots of time under supervision. In the process, their health insurance coverage limit may be reached, and their assets and savings may get drained before they can get well. 

In such circumstances, you may be compelled to look for alternative financing options to sustain the care of your loved ones. The listed payment alternatives in this post present some of the best financing options that you can use in such circumstances. Does your loved one need home care services in Phoenix? Contact Cypress HomeCare Solutions today.

Posted on February 3, 2020