Paying for Long-Term Care
Paying for Nursing Home Care
It's important to consider how you will pay for nursing home care. The good news is there are many ways to pay for it.
- Personal resources
- Help from your state
- Medicaid
- Home and community-based waiver programs
- Long-term care insurance
- Medicare
- Other resources
Personal Resources
You can use your personal savings to pay for nursing home care. Some insurance companies let you use your life insurance policy to pay for long-term care. Ask your insurance agent how this works.
Another option for homeowners is a "reverse mortgage." It is a type of loan that allows some people to use their home as a source of income without losing ownership. Talk to a lawyer or financial advisor about the benefits and risks of a reverse mortgage.
Be sure to consult your lawyer or financial advisor before committing to either your life insurance or reverse mortgage. There are important issues you need to understand.
Help From The State
Medicaid
Medicaid is a joint federal and state program that pays for certain health services and nursing home care for older people with low incomes and limited assets. If you qualify, you may get help to pay for nursing home care or other health care costs. If you qualify for both Medicare and Medicaid, most health care costs are covered.
Learn more about Medicaid coverage.
Home and Community-Based Waiver Programs
If you are eligible (or close to being eligible) for Medicaid, you may be able to get help with the costs of some home and community-based services. These state waiver programs help people keep their independence, while getting the care they need outside of an inpatient facility.
Long-Term Care Insurance
This type of private insurance policy can help pay for many types of long-term care, including both skilled and non-skilled care. Long-term care insurance can vary widely. Some policies may cover only nursing home care. Others may include coverage for a whole range of services such as an adult day care center, assisted living, medical equipment, and informal home care.
If you have long-term care insurance, check your policy or call the insurance company to find out if the care you need is covered. When shopping for long-term care insurance, find out which types of long-term care services and facilities the different policies cover. Also, check to see if your coverage could be limited because of a pre-existing condition. Make sure to buy from a reliable company that is licensed in North Carolina.
Medicare
Medicare is a federal health insurance program primarily for people age 65 or older. Generally, Medicare doesn't pay for long-term care. Medicare pays only for medically necessary skilled nursing facility (SNF) or home health care. However, you must meet certain conditions for Medicare to pay for these types of care.
Most long-term care assists people with activities of daily living like dressing, bathing, and using the bathroom. Medicare doesn't pay for this type of non-skilled care, also called "custodial care." Some Medicare Advantage Plans (formerly Medicare + Choice) may offer limited skilled nursing facility and skilled home care coverage if the care is medically necessary.
Learn more about Medicare coverage.
Other Resources
Depending on your specific situation and location, there may be additional/alternative resources available for you to use to pay for long-term care. To determine if any of these exist for your specific situation, contact the various community senior resource agencies and county social services departments in your local area.