How will I pay for my long-term care? Long-term care, also known as extended care, can be a significant financial burden for many families. This will affect nearly 70% of ALL Americans!1 And to make it worse, the cost of long-term care is not straightforward. It can include expenses such as in-home care, assisted living facilities, and nursing homes. The cost of this care can add up VERY and may not be fully covered by insurance or government programs.
But there are several cost-saving strategies that you can use to help manage the cost of extended care. With planning and creative thinking, you can carry the burden of costs a little more easily. Let’s take a look at some ideas that can help.
Research and Plan
First, know what is coming. Obviously, no one has a crystal ball that can tell us what the future holds (please call me immediately if you do!). Still, as I mentioned above, the odds are very much in favor of you needing some sort of long-term care during your lifetime (7 out of 10 Americans). That means we need to plan and prepare for the inevitability of extended care. This means understanding the types of care available and the costs associated with each type of care. It also means thoughtfully considering options such as long-term care insurance. Research and planning will help you be ready and ahead of the game.
Home Care Options
Another cost-saving strategy is to explore home care options. An example is in-home care, which can be more affordable than moving to a nursing home or an assisted-living facility. Many older adults prefer to stay in their own homes as they age, and home care services can provide the necessary support and assistance to make this possible. There are also more options for in-home care than ever and in more places than in the past.
Medicaid
Next, try to save money on extended care by looking into Medicaid. Medicaid is a joint program between our federal and state programs. It provides healthcare coverage for those of us with lower incomes. It can help cover the cost of nursing home care for those who qualify. There are strict income and asset limits, so it is essential to consult with an attorney or other professional to determine if you qualify and how to apply.
Community Options
One of the more creative ideas is to look for community-based services, such as adult day care or respite care. These services can provide older adults with the support they need while allowing them to remain in their own homes. I have also seen how they can provide a much-needed and well-deserved break for family caregivers who may struggle to balance caregiving demands with other responsibilities.
Tax Advantages
Everyone can agree, we would prefer not to need any long-term care or assistance but if you do find yourself in this situation, don’t forget to consider the tax advantages of long-term care expenses. It might be possible to make the best of a bad situation and deduct some long-term care costs from your income taxes. Unfortunately, this is not always the case so speak with your tax professional to understand the benefits available to you.
The cost of extended care can be a significant concern for many individuals and families. Many challenges may require several different solutions and no two plans are ever the same. But taking the time to plan can help dramatically. Taking the time to explore home care options, Medicaid, community-based services, and find any possible tax benefits will go a long way to easing stress and anxiety along with the financial burdens that may arise. These steps can help you manage the cost of extended care and most importantly, ensure that your loved ones receive the care they need.
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 | About the Author James M. Comblo, CFF is the President & CEO of FSC Wealth Advisors. His greatest passion in the financial services industry is helping clients live the life they want, not the life they are forced to. To learn more about him click here. |