Top 5 Ways to Pay for Elder Care Services

Written by Valerie VanBooven

Articles - The Last Word

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    This month’s focus for most contributors will probably be related to HR 3221 and the issues surrounding this poorly written bill. Everyone seems to have an opinion and everyone has their own interpretation of the 300 page compilation of contradictions. My only opinion is that until I see the mortgagee letters, it is business as usual. Therefore, my focus this month is on marketing and education that should go hand-in-hand with Reverse Mortgages. For those of you who haven’t studied the senior market in-depth and aren’t aware of the many concerns seniors have- here are their top fears:

1. Running out of money.
2. Losing their ability to maintain their independence and choice.

    The need for long-term care can make both of these fears become reality. The more we educate ourselves, the more we educate our prospects, leads and referral sources about solutions to problems. One of the biggest elephants in the room when it comes to long-term care is MONEY. That’s where you come in…

    Here are the top 5 ways to pay for elder care services. The more you share your depth of knowledge on these issues, the more credibility and trust you establish in your community. Use this information as a handout, flyer, leave-behind, or added value service.

Privately paying for long-term care means paying for care out of your own income, investments, savings and assets.

Long-term care insurance will pay for in-home care, assisted living, and nursing home care. This is the most appropriate and needed form of insurance protection available to us today. Long-term care insurance should be termed “lifestyle” insurance (it’s NOT nursing home insurance!). If your vision of your later years includes sitting at home in your own recliner, with your own remote control, watching your own TV….well, you should be planning for that future with long-term care insurance.

Reverse mortgages (Home Equity Conversion Mortgages) have become one of the most popular and accepted way of paying for many different expenses, including the cost of long-term care. Reverse mortgages are designed to keep seniors at home longer. A reverse mortgage can pay for in-home care, home repair, home modification, and any other need a senior may have.

Government assistance should be a last resort when considering how to pay for long-term care. This type of assistance refers to relying on the Medicaid system. Medicaid will pay for long-term care for seniors who cannot afford to pay for care themselves. Keep in mind that Medicaid is an under-funded and over-burdened system, therefore Medicaid resources are limited. This means that in many areas Medicaid beds in nursing homes are difficult to find. Families may end up driving long distances to visit their loved ones. Traditionally, Medicaid resources for in-home care are extremely limited, which means most seniors who apply for Medicaid end up in a nursing home type setting. The Deficit Reduction Act 2005 makes qualifying for Medicaid even more difficult for most families. Planning ahead is really the only viable option for families today.

VA Aid and Attendance Pension Benefit: The Veterans Administration has established a pension program whereby your purchase of personal care and attendant home services may be paid for through your acquired pension. If you are a Veteran or the surviving spouse of a Veteran who has served at least 90 days or more on active duty with one day beginning or ending during a period of war, and you are in need of assistance at HOME due to your disabilities, you may be eligible for VA’s non-service connected disability pension. www.veterans-express.org

Medicare and Other Health Insurances: Medicare is a federal health insurance program for people 65 and older, certain people with disabilities, and ESRD (End Stage Renal Disease). It pays for much of your health care, but not all of it. There are some costs you will have to pay yourself. (www.medicare.gov)

There are other kinds of health insurance that may help pay the costs that Medicare does not. Medicare Supplements (Medi-gap Policies) and Long-Term Care Insurance will pick up some of the costs that Medicare will not pay for.

Medicare was implemented in 1965. How many times has Medicare been over-hauled since 1965? NEVER. It was not designed to pay for care related to diseases or conditions such as Alzheimer’s disease, Parkinson’s, or MS. The average life expectancy was much lower in 1965 because medical technology was not as advanced. Medicare was designed for SHORT-TERM acute care, and short-term rehabilitative stays in a rehab or long-term care facility.  Although Medicare Part D was added in 2004/2005 to help with the costs of prescription drugs, Medicare still does not pay for long-term care.

About Valerie VanBooven: Valerie VanBooven RN BSN is a professional speaker and the author of “The Senior Solution: A Family Guide to Keeping Senior Home for Life!” She educates consumers and professionals about the issues surrounding long-term care. She also serves as the national marketing director for Next Generation Financial Services, a Division of 1st Mariner Bank. Valerie VanBooven can be reached via email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .