Understanding nursing home costs
Nursing home prices aren’t one-size-fits-all. Costs largely depend on the level of care needed. For instance, basic assistance with daily activities will cost less than around-the-clock, skilled medical care. Location can also play a big role as prices vary drastically depending on where you live.
Nursing home payment options
Long-term care solutions
Long-term care solutions can be a smart way to plan ahead. By paying premiums now, you can potentially save yourself and your family thousands of dollars down the road. Policies vary, but many of them help cover the cost of both nursing homes and in-home care.
Medicaid
If your financial resources fall below a certain threshold, Medicaid can step in as a helpful resource. Medicaid is a state and federally funded program that helps cover the cost of long-term care for those with limited income and assets. Keep in mind, eligibility rules vary by state, so this might require some additional paperwork and planning.
For more information about Medicaid eligibility, contact your state Medicaid office.
Government programs
Certain government programs can be helpful if you qualify. For example, Veteran’s Affairs (VA) benefits might cover nursing home care for eligible veterans. The Program of All-Inclusive Care for the Elderly (PACE) can also help older adults with specific needs, and Social Security benefits may be used to contribute toward care costs in some cases.
Out-of-pocket options
Of course, many people end up paying for nursing home care with their own savings. This might mean using retirement accounts, home equity or other investments to fund their care directly. While this can be the most straightforward option, it’s important to plan carefully to ensure that you don’t exhaust your resources.
Explore your payment options
There’s no universal answer to how you should pay for nursing home care. It all depends on your finances, health and future plans. The good news is that there are many options to explore, and a financial professional can help you map out the best strategy for your care or that of your loved ones.
