Have you finally decided to take your loved one to a nursing home? Is your loved one in agreement? If your answer to these questions is in the affirmative, then the next thing on your mind now is how to pay for the nursing home.
The cost of nursing home will depend to a large extent on the area you are living and the location of the nursing home. Some nursing homes are quite expensive while there are others that are cheap. The fee could range from $2,000 to $4,700 a month.
This is no problem at all as there are various sources from which you can get help to pay for the nursing home. Let’s take a look at the sources.
You can pay by yourself
This is actually the first option to consider when thinking of paying for nursing home for your loved one. You have to see whether you have enough in your savings to pay for the home. This is recommended as against borrowing to finance placing your loved one in a nursing home.
Another option you can use to pay for the nursing home is insurance. You can decide to take an insurance policy that will provide you with enough to finance taking your loved one to the home.
This is a federal health insurance program administered by the Centers for Medicare and Medicaid Services (CMS) for people over the age of 65 and for certain disabled individuals under 65. It is not a long-term care program. Medicare covers nursing facility care for those individuals who are recovering from serious illness or injury, but only for a limited time.
Medicare will cover nursing home care only if the patient receiving the care needs the highest level of care called skilled nursing. The patient must also have spent at least three consecutive days in a hospital, not more than 30 days prior to nursing home admission. A physician must certify that skilled nursing services are needed for the same or related illness for which the patient was hospitalized.
Medicare pays for an eligible individual’s care in a skilled nursing facility for up to 100 days. Under the program, the first 20 days are covered 100 percent. For the remaining days, the patient must make a daily coinsurance payment. The co-payment for 200 is $101.50 per day. If the patient remains in the nursing home longer than 100 days Medicare will make no further payments during that spell of illness.
This is a government aid to help you with the financial assistance that you need to take your loved one to a nursing home. Medicaid is a state and federal program designed to provide health care for low-income individuals. The program originally was not designed to serve the elderly long-term care population; however, currently it is the primary method of financing nursing home care for those individuals who cannot afford to pay for it.
Medicaid nursing home patients must meet two requirements:
– Financial eligibility: You have to consult your states department for information on these as it differs from state to state.
– Medical eligibility: To determine medical eligibility for Medicaid, applicants must have a Medicaid-approved examination called a Pre-Admission Evaluation and a mental health screening (pre-admission screening and annual resident review, or PASARR). The PAE determines the level of care a patient needs and whether the patient meets Medicaid’s medical criteria. The PASARR determines if the patient has any mental illness or mental retardation that requires special treatment. If so, the applicant cannot be admitted to a nursing home.
Medicaid will pay for nursing facility care for those both financially and medically eligible. Medicaid beneficiaries, however, do contribute all of their income to the cost of their care, with a few exceptions: the cost of a health insurance premium, the cost of certain medical services not covered by Medicaid (such as limited podiatry services, for example) and $30 for personal needs.
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