Paying for Senior Living

After making enough considerations and much deliberation with yourself, with family, even with friends, and of course, with your senior loved one, you’ve already decided on the type of care or housing you’re going to avail of for your beloved elderly. And so the next logical question that must be running through your mind is: “How do I pay for it?”

Just like in healthcare and housing, and practically anything in life, you are given several options to choose from when paying for senior living. It’s like seeing several dishes laid on the banquet table, so to speak, and thinking of the ones you want to pick and eat – you have a lot of choices. And for seniors, things are understandably made more convenient.

But before anything else, you have to understand that most modes of payment generally come in two categories: Public Pay or Private Pay. And then of course, the more specific types of payment vary from one another based on the type of care that suits your senior loved one and the services and facilities available in a given state.

Under the Public Pay option, funding for nursing care and non-nursing care differ from each other.

Nursing care funding has the following options: Medicare, which, under certain conditions and limitations, will take care of some nursing home expenses for its beneficiaries requiring skilled nursing or rehabilitation assistance; Medicaid, a State and Federal program tasked to pay most nursing home expenses for people that have limited income and assets; managed care plans, which, usually, won’t pay fully or partially unless the nursing home has an agreement with a participating provider and an in-network physician ordered to avail of the care; Medicare supplemental insurance or Medigap, a private insurances which helps pay for gaps in such Medicare coverage as deductibles and co-insurances; long-term care insurance, a private policy, whose benefits and costs vary extensively; and Veterans Administration benefits (aid and attendance, wherein those that have served during wartime may qualify for benefits through the Veteran’s Administration.

On the other hand, non-nursing care funding has subsidies for seniors with below average means of income may qualify for low income housing and/or housing subsidies, and government assistance, courtesy of the United States’ Department of Housing and Urban Development (HUD) that offers programs on public housing for low-income residents, income-qualified housing and Section 8 or Housing Choice Vouchers.

Meanwhile, under the Private Pay option, there are access loans provided by Elderlife Financial Services (EFS) and life settlement transaction, which is the sale of an existing life insurance policy to a third party to act as a “funding bridge” for costs of retirement coverage.

In the EFS Access Loan, a senior or one of his/her family members must pay for rent while waiting for a home to sell or for a life insurance policy settlement (or the VA Benefit) to arrive, and supplement monthly rent or finance move-in fees. Funds received from an EFS Access loan go directly to a participating community that assists in daily living activities.

In life settlement, there is the Life Care Funding Group to help seniors raise funds for their senior housing and long-term care through the Life Settlement Market. This option is highly recommended to seniors and their families who are experiencing transition or financial turmoil.