How will I Pay for Care?
When you look at the chart below, it is evident that long term care is financially demanding and will cost around $90,000 a year. The daily rate for long term care in Colorado can vary from $173 to $650. While there are a wide variety of prices depending on your location, you can use the chart above to get a general idea of how to pay for long term care overall. While there are options for paying for long term care, the most common ways are Private Funds, Long Term Care Insurance, and Facility Medicaid.
Less than ⅓ of folks pay for long term care with their own money. Many people will pay a portion of their long term care with private funds until they qualify for Facility Medicaid. If you have invested heavily or continue to receive an income of over $90,000 per year, you can probably pay for Long Term Care with your personal income.
Long Term Care Insurance
An option for people trying to plan ahead is Long Term Care Insurance. These policies reimburse policyholders with a daily amount to cover the cost of assisted care or long term nursing facilities. The cost of long term care insurance varies based on several factors including age (outlined below as questions you should ask). If you or your loved one holds long term care insurance contact your insurance agent for personalized assistance with your situation. Ask the following questions to get help with making decisions:
Questions for Long Term Care Insurance
- What is the maximum amount the policy will pay per day?
- What is the maximum number of days/years the policy will cover?
- What is the lifetime maximum the policy will pay?
- What optional benefits were included with this policy?
Facility Medicaid is a government program to pay for long term care for those that are unable to afford the cost on their own. 2/3 of patients in long term care are able to do so with facility Medicaid. Even if your loved one exceeds the income requirements for facility Medicaid, it may be in the family’s best interest to spend down and qualify. With facility Medicaid you must have a monthly income of less than [$2199/month] and total assets of less than [$2000]. You are able to keep one house and one vehicle and still qualify for facility Medicaid. This is also a great option to protect assets for a spouse that will not be in Long Term Care.
If you are in a situation where you have a loved one in need of long term care, please read this whole document to discover how qualifying for facility Medicaid can be done. This document is provided primarily to explain facility Medicaid and provide a support to those worried about the care for their loved ones.