Worried about the cost of senior care? From Long-Term Care Insurance to VA Aid & Attendance, discover the financial options available to Florida families for funding home care.
One of the first questions families ask us at Shal We Home Care is, “How do we pay for this?”
There is a common misconception that Medicare pays for all senior care. Unfortunately, Medicare generally only covers short-term medical skilled nursing (like wound care after a hospital stay). It does not pay for the long-term, non-medical daily assistance (like bathing, cooking, and companionship) that allows seniors to age in place.
However, paying out-of-pocket isn’t the only option. There are several financial avenues available to Florida seniors that can help offset the cost of home care. Understanding these can save your family thousands of dollars and ensure your loved one gets the care they deserve.
Here is a comprehensive guide to funding home care in Lee, Collier, and Hendry counties.
1. Long-Term Care Insurance (LTC)
If your loved one purchased a Long-Term Care Insurance policy years ago, now is the time to use it.
- What it covers: Most comprehensive LTC policies cover non-medical in-home care (personal care, homemaker services).
- How it works: Typically, you pay the agency (Shalwe) directly, and the insurance company reimburses you.
- The “Elimination Period”: Check the policy for an elimination period (a deductible based on days, usually 30-90 days) where you must pay out-of-pocket before coverage kicks in.
- Shalwe Help: We are experienced in working with LTC providers. We can send the necessary nursing notes and care logs directly to the insurance company to facilitate your reimbursement claims.
2. Veterans Benefits: Aid & Attendance
For veterans and their surviving spouses, this is often the most overlooked goldmine of support.
- What it is: The “Aid and Attendance” benefit is a tax-free pension added to the basic military pension. It is designed specifically to help veterans pay for assistance with daily living activities (eating, bathing, dressing).
- Eligibility:
- Served at least 90 days of active duty, with at least one day during wartime.
- Honorable discharge.
- Medical necessity (you need help with daily tasks).
- Financial need (asset limits apply).
- The Benefit: It can provide thousands of dollars a month specifically for home care.
- Local Help: Contact the Lee County or Collier County Veterans Services Office for free assistance in applying.
3. Reverse Mortgages (HECM)
For seniors who are “house rich but cash poor,” a Home Equity Conversion Mortgage (HECM) can be a strategic tool.
- How it works: It allows homeowners age 62+ to convert part of their home equity into cash (a line of credit or monthly payments) to pay for care expenses.
- Staying Home: Since the goal of home care is to stay in the home, this loan allows the home to “pay for itself.” You do not have to repay the loan until you move out or pass away.
- Caution: Always consult with a certified financial planner before making this decision, as it affects the inheritance value of the home.
4. Life Insurance Conversions
Did you know you can convert a life insurance policy into a “Long-Term Care Benefit Plan”?
- How it works: Instead of lapsing a policy or surrendering it for a low cash value, you can convert it into a pre-funded account that pays specifically for home care services.
- The Benefit: This frees up immediate value from the policy while the senior is still alive and needing care.
5. Private Pay / Out-of-Pocket
Many families do pay for home care using savings, pensions, or Social Security income.
- Budgeting Tip: Remember that home care is scalable. You might not need 24/7 care. Often, a “tuck-in” service (2 hours in the morning, 2 hours at night) is affordable and sufficient to keep a senior safe.
- Cost Comparison: When comparing costs, compare the hourly rate of home care to the monthly cost of an Assisted Living Facility (which can run $5,000–$8,000+ per month in Florida). Often, 20 hours of home care a week is significantly cheaper than a facility.
6. Medicaid (Managed Medical Assistance – MMA)
While standard Medicare doesn’t cover home care, Florida’s Medicaid program (Statewide Medicaid Managed Care) does offer long-term care waivers for those who meet strict financial and medical criteria.
- The Waitlist: Be aware that there is often a waitlist for Home and Community-Based Services (HCBS) waivers in Florida.
We Can Help You Navigate
Financial conversations can be stressful. At Shal We Home Care, we can help you review your options. While we are not financial advisors, we can explain how our billing works with LTC insurance and help you design a care plan that fits your monthly budget.
Don’t let cost fears prevent you from seeking help.
Contact us today. Let’s look at the numbers together and find a solution that keeps your loved one safe and your family financially secure.
