Knowing what is covered for you and your family when it comes to elder care costs is important. It’s also important to look at what is not covered by your current health and other supplemental types of insurance. This preparedness seems like common sense, but unfortunately, a lot of people make assumptions when it comes to senior care coverage, and these assumptions are not always correct. Our purpose with this blog is to help you figure out what things are covered so that you can get a more accurate picture of what expenses you will face when it is time for an elderly loved one to transition into senior care.
There are a few main types of insurance that seniors have. These include Medicare, Medicaid, private insurance, long term care insurance, and disability insurance. Let’s look at each of these individually so we can get a better idea of what your areas of coverage are.
Medicare: Medicare is broken up into four separate parts. Everyone has Part A, which covers a portion of hospital visits. Part B covers portions of doctors visits, preventative care, and diagnostic tests, like X-Rays. There is a monthly cost associated with Part B. Part D covers prescription drug costs. There is a lot of confusion about Part C, which is why we’ve saved it for last. This is called supplemental insurance or sometimes Medi-Gap insurance, and it comes in many different forms. The monthly costs will vary depending on what coverage you want. Medicare will cover very little, if any, senior care costs.
Medicaid: Only individuals with low income can qualify for Medicaid. Medicaid covers far more in terms of senior care than Medicare does, but only through state-approved sources. Senior care, more often than not, is limited to nursing homes, although some states have begun using in-home care resources more heavily because of the lower costs. It can take several months to get Medicaid coverage implemented because of the strict financial requirements that are implemented. If this is something that may benefit you or your family, start the process soon.
Private Insurance: Very rarely do private policies cover senior care. Usually, it is directed solely toward health care and prescription costs.
Long Term Care Insurance: This type of insurance gives you the most direct type of coverage when it comes to senior care. You can choose from many different variations here, including in-home care only, nursing home care, or whatever else you prefer. LTC insurance usually has a lot of stipulations surrounding it. For example, you might only have a certain amount of expenses covered per day, or your coverage might only last for a certain number of years once it is instituted. Be sure that you know what riders and limitations your policy has. If you are interested in applying for LTC insurance, be aware that your costs are often dependent on age or health issues as this doesn’t always fall under protections of federal law.
Disability Insurance: Disability insurance is a good thing to have when you are working, but most seniors will not benefit from it. This type of insurance typically only replaces lost income if you become disabled.
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