Legal/Financial Article

                                                   Cost of Elder Care

The cost of care varies greatly depending on the type of care, the region of the country care is received and where the care is provided. According to the "The MetLife Market Survey of Nursing Home and Assisted Living Costs," The MetLife Mature Market Institute, October 2008, the cost of home care ranges from $14.00 an hour in Alabama to $25.00 an hour in Connecticut. While nursing home care cost ranges from $132.00 a day in Shreveport, Louisiana to $355.00 a day in New York City for a semiprivate room. And the MetLife Mature Market Survey of Adult Day Services and Home Care Services, MetLife Mature Market Institute, September, 2008, found the national average cost of five hours of home care is $100.00. If the home health aide provides care five hours per day, five days a week then the cost is over $26,000.00 per year. If round-the-clock care is needed the cost is usually greater than the cost of a nursing home or assisted living facility.

The Georgetown University Long-Term Care Financing Project, Fact Sheet Article: "Who needs long-term care?," May 2003, found that 83% of long term care is provided in the home or community, while only 17% is provided in a nursing home. Health insurance, including Medicare and Tricare, will pay for some medical care at home as long as the patient continues to improve. Generally, Medicare is available for people age 65 or older, younger people with disabilities, and people with End Stage Renal Disease (permanent kidney failure requiring dialysis or transplant). Medicare pays limited amounts for skilled care following a hospital stay.

Medicare does not cover most long term care services which assist people with the activities of daily living over a long period of time. Medicare will only cover the first 100 days of care in a nursing home per benefit period if you are receiving skilled care and have a qualifying hospital stay of at least three days and enter the nursing home within 30 days of that hospital discharge. There are also some deductibles and co-pays (meaning you have to pay part of the cost). In addition, Medicare covers limited home visits for skilled care and incidental homemaker services. See www.medicare.gov for more details. Disability income insurance is designed to replace part of a person's income while they are unable to work because of an accident or injury. This type of insurance does not pay for long term care.

So, how can I pay for long term care? There are four options:

1. Pay out of pocket
2. Medicaid. Contact your local Medicaid office or visit www.cms.hhs.gov/home/medicaid.asp
3. VA funded long term care. For information on eligibility visit www.va.gov/elig
4. Long term care insurance. State Health Insurance Assistance Program (SHIP) is a free program that counsels older adults about health insurance-related topics. SHIP counselors can help you decide if you need long-term care insurance. They can also help you read and understand the insurance policy you are thinking of buying or policy that Mom and Dad already own. For the SHIP program nearest you, go to www.medicare.gov