Home or Nursing Home?
Statistics show that more than 85% of aging seniors have a desire to stay at home while they age, which is probably no surprise to you and certainly no surprise to The Home Care Association of America. (The industry's leading trade association for providers of home care and a major resource to families looking for information on home care all across America.)
After deciding that you are committed to staying home as you age, the next step is to plan accordingly. Although many Americans have worked hard to afford their retirement, it is no secret that folks are working longer due to the high cost of health insurance, along with fading pension benefits that retirees had once been able to count on.
Although the process of planning for a successful retirement can be complicated, here are some questions that can help you plan for an unexpected change in health condition.
- If your health degrades to the point where you require help with Activities of Daily Living (e.g. shower assistance), what options exist?
- Depending on the level of assistance needed: In Home Care, Independent Living, Assisted Living or Nursing Home are options.
- What is the cost comparison of these options?
- Average home care prices range from $18-$25/hour and can be tailored to your specific needs. Independent Living can range from $2500-$4000/month. Assisted Living can range from $3500 to well over $10,000 per month depending on the facility and amenities. Nursing homes can exceed $10,000/month for full nursing care support and is a last resort for most Americans
- Who will pay for this care?
- Almost all Independent and Assisted Living facilities are private pay; those with long term care insurance may be able to use this benefit for these expenses. Nursing home expenses will also come out of pocket until you have reached the Medicaid threshold. It is always a good idea to speak with an Attorney on your Estate Planning process; there are many tools and techniques available to help protect your assets in the event that you must exercise some of these options.
- (For more information on Estate Planning see: Part 1, Part 2, Part 3, Part 4.)
- (For more information on Medicaid see: Medicaid Basics).
If we all had a crystal ball, we would be able to know if we will age gracefully and without the need for support later in life. Unfortunately, most of us will need to try to anticipate the unexpected by planning for what may or may not happen later in life.
