These are common questions people have when seeking advice on elder care issues. These questions result from misconceptions about paying for nursing home care. The “government” or “the state” never takes your assets to pay for your nursing home care costs. Nor will a “nursing home” seize your assets to pay for its bills.
What actually happens is that Medicaid, the governmental program that pays for nursing home care, will not pay for your care unless you complete any necessary “spend downs,” which may include selling your home and using those proceeds and other assets to pay for your care before you can qualify for Medicaid assistance.
Even though your assets will not just be taken away, the high cost of nursing homes is still concerning. According to Genworth Financial’s 2021 Cost of Care survey (the most recent data available), the median monthly cost of skilled nursing in a private room at a nursing home will set you back $108,405 per year. The cost of this care is understandably a worry for many seniors.
How do you pay for this astronomical cost to reside in a nursing home? Normally the cost is paid in one of three ways:
1) If you qualify for Medicaid, payment of a portion or all of the nursing home costs will come from government funds.
2) If your asset level does not allow you to qualify for Medicaid, the cost is paid by your own resources.
3) If you have long term care insurance, that insurance will pay for a portion or all of the cost for the term of the policy.
No one “takes” assets from you; the nursing home simply requires payment for its services if you intend to reside in the nursing home. The notion of assets being seized by the state or a nursing home is only one of several misconceptions about paying for long-term care (LTC).
Everyone’s situation is different; determining the best way to pay for the cost of LTC can include a complex analysis and result in multiple options. Certainly, the solution is not to allow the fear caused by misconceptions about paying for LTC to prevent you from becoming fully informed. It is better to act now if you wish to take full advantage of the options available to plan for the risk of LTC.
At Collins & Hepler, PLC, we assist clients at all stages of the process of planning for and dealing with long-term care and other end-of-life issues. Proper planning has saved some of our clients thousands, and in some cases, hundreds of thousands of dollars. Clients who wait to seek assistance at the point when nursing home care is required have, in many instances, already lost some of the options that would have been available had they sought advice earlier, although it is never too late to try to save assets, even if you or your loved one is already residing in a nursing home. To learn more, contact our office at (540) 962-6181 and schedule an appointment with Jeanne Hepler, who was named one of Virginia's "Go To" Lawyers for Elder Law by the Virginia Lawyers Weekly.