How do People Pay for Care?

Paying for senior care is one of the most stressful, exhausting situations that people can find themselves in. Care is not cheap, and it is often absolutely necessary. Paying for care is a necessity, but it can seem like an impossible task.

 

That begs a big question: how do most people pay for senior care?

 

Every situation is a little bit different, and not everyone relies on the same methods of paying for their care. Below is a list of some of the major methods employed when it comes to paying for care. If you have questions about how you will pay for the care of a loved one, my hope is that this list will help you to gain some ideas and some guidance when it comes to making this stressful experience a little bit more manageable.

 

Insurance

 

Insurance policies are the most heavily used method of paying for senior care. This includes privately held insurance policies, such as a long term care insurance policy, and/or publicly available health insurance policies that most of us are familiar with. This includes Medicare and Medi-Cal.

 

The biggest issue that people have when it comes to insurance is that they are not sure what is covered as far as long term care goes, and what isn’t. This leads to confusion, and then frustration when they find out that care that they thought was covered is not. The best thing that you can do for yourself or a loved one is to know what will be covered, what won’t be, and what the associated costs will end up being for you. Knowing this ahead of time will help to eliminate unpleasant surprises.

 

Out of Pocket

 

Yes, some people do pay for care out of pocket. The best way to go about doing this is to save for years ahead of time. This is often what retirement funds and annuities are for. This is tough for the majority of people, though. Saving money is impossible when you are living paycheck to paycheck. Unfortunately, as the cost of care increases, the money that we have saved will not stretch as far. This means that for most, paying out of pocket is not realistic.

 

Assistance Programs

 

That’s why assistance programs are so helpful. The VA can be a great resource for veterans, as can local charities, churches, and other programs. Check out what your community offers if you are unsure of what’s available to you.

 

Don’t Pay

 

Some people do not pay for senior care at all. They either do this by providing senior care themselves as a family caregiver, enlisting the help of friends and family members, or ignoring the needs of their loved ones. Obviously, the last of these is something to be avoided at all costs, but the other two provide an interesting alternative. Can you act as a successful family caregiver?

 

Knowing how others pay for care can help you to make better decisions.

 

In short, it is possible. But it’s not always helpful. Having a great caregiver on your side can be a great resource, even if you are providing the bulk of care yourself. For example, respite care can be a good way to fill in any gaps that you might experience.

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