Home Care Payment Options
How is home care paid for?
Private or self-pay means paying out of your own pocket for contracted services. It is the most common method of payment for non-medical home care. Medicare does not reimburse for services that assist with activities of daily living. Those services are considered non-skilled care. Your family may privately pay an agency for private duty types of custodial services such as personal care, transportation, grocery shopping, meal preparation, medications, companionship.
Long Term Care Insurance Policies provide coverage for home care , nursing homes, adult day care and respite care. to provide home health aide services through a licensed home care agency. Policies and plans vary and are specific to the type of coverage your plan entails. Most policies reimburse for both skilled and non-skilled care. Examples of skilled care are skilled nursing services for medication administration and rehab services such as physical therapy. Examples of non-skilled care are personal care, transportation, grocery shopping, meal preparation, companionship. Find out more about Long Term Care Insurance.
Medicare covers care for your loved one who is home-bound and requires short-term skilled services after a hospital or nursing home stay related to illnesses and/or injury. It also covers rehabilitation services and hospice for end stage illnesses. Examples of skilled services are Nursing, Physical Therapy, Occupational Therapy or Speech Therapy. Medicare home health services are provided by the healthcare professional under the direction of a physician on an intermittent basis. Medicare does not reimburse non-skilled services.
Medicaid assists individuals with limited income and assets and services vary from state to state. In some states, Medicaid reimburses for home care services through Community-Based “waiver” Services (HCBS) for seniors who need assistance with personal care services in their homes, thereby avoiding institutionalization. Participation to these programs is based on financial and care needs. Those care needs must be considered necessary to prevent nursing home admission. HCBS waiver programs provide both skilled and non-skilled home care.
The Veteran Aid and Attendance benefit is available to Veterans who served at least 90 days, with at least one day during wartime. Families with Veterans or surviving spouses can benefit from Veteran Aid and Attendance benefits. The veteran’s disabilities include being bedridden or blind and do not have to be service-related disabilities to qualify for services at home or in a nursing home. These include personal care services such as feeding, dressing and bathing.
Reverse Mortgages are available for seniors who are 62 or older and need money to pay for certain home care services. Individuals are able to keep their home and convert the equity on their home into cash. Reverse mortgages are increasing in popularity.