Paying For Home Health Care Costs
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With an increasing population of aging Americans who now receive some level of medical care or other assistance in their homes, looking for ways to pay for home health care costs is a key challenge for a growing number of families. Although home health care costs vary among agencies and geographical location, consumers can expect to pay an average monthly cost of $3,813 for 44 hours of home health care provided by a home health aide. Skilled nursing services cost more.
Services Medical Insurance Covers For Home Health Care Costs
Not all private health insurance plans or long-term care policies cover in-home services or home health care costs. Some pay for only a few. Even when certain services are covered, insurers often impose limitations on coverage, such as excluding pre-existing medical conditions, including dementia, or requiring that a physician order in-home care services following an inpatient hospital stay.
What Medicare Covers For Home Health Care Costs
Medicare covers some home care services as long as the person meets the qualifying criteria. If an individual is in the hospital for at least three days before being discharged, Medicare Part A pays the full cost of covered home health services providing a doctor prescribes them.
Medicare will pay for physical therapy, occupational therapy, and/or speech therapy, and part-time skilled nursing care. It will also pay for part-time personal care provided by a home health aide if the individual is receiving in-home therapies or visits by a nurse two or three times a week. Medicare will not pay for full-time nursing care in the home, housekeeping services, or a part-time personal care aide if that is the only care a person needs.
Life Settlement Provider Offers a Unique Funding Source
Families often find themselves in financial binds when trying to cover the bills for home care. The costs associated with elderly home care can mount quickly, leaving individuals and their families looking for alternative ways to pay for services.
Professionals working in the life settlement business can help by assisting policy owners who have a life insurance policy to sell. Brokers connect policyholders with life settlement providers who buy the policies, which provides cash to help cover out-of-pocket expenses for home care.
A settlement provider may be an investor or a financial institution that places a bid on a life insurance policy a policy owner has for sale. More than one settlement provider can place a bid, giving the policyholder the opportunity to accept the highest bid.
With more disabled, chronically ill, or terminally ill elderly requiring professional medical services at home or assistance with daily living, life settlements are playing an increasing role in financing long-term care.