Paying For In Home Care

Older Americans overwhelmingly prefer to stay in their own homes as opposed to moving into an assisted Living facility. Most of those aging in place are likely to need help at with household chores, nursing services and personal care. With the 65-plus population projected to grow from 56 million in 2020 to 73 million in 2030, the need for home health care will only increase.

Those who plan ahead may buy Long Term Care Insurance with an in-home care option however the cost of coverage can be prohibitive for some. According to the American Association for Long-Term Care Insurance the average annual premium in 2021 for a 55 year old couple was $2,050. Unfortunately on average 20% of applicants under 60 are declined, and the percentage of people denied coverage rises steeply with age.

Paying out of pocket
Most people receiving in home care pay using personal funds including:

• Retirement income/Pension
• Investments and savings
• Cash Value Life insurance policies
• Annuities
• Borrowing, Home Equity, Reverse Mortgage

Keep in mind that borrowing home equity can be risky. Some try to save on home care by hiring an aide directly, which tends to be cheaper than going through a home-health agency. But this approach technically makes you an employer which comes with its own set comes with responsibilities and complications.
 
Veterans programs
Eligible former service members may qualify for VA Aid and Attendance benefits.
 
Taxes
If you're paying for home care for you may qualify for a tax deduction. An adult child serving as a caregiver for a live-in parent also can get a tax break by claiming the parent as a dependent. But the child must meet certain criteria, including providing more than half of the care recipient's financial support.
 
PACE
Program of All-Inclusive Care for the Elderly (PACE)
About 55,000 people participate in more than 140 PACE programs in 30 states, according to the National PACE Association.

Local PACE organizations work with medical providers who form the recipient's health care team. If the team decides your loved one needs care that Medicaid or Medicare doesn't provide, PACE still may cover it. You can have either Medicare or Medicaid, or both, to join PACE. PACE is only available in some states that offer PACE under Medicaid. To qualify for PACE, you must:

• Be 55 or older
• Live in the service area of a PACE organization
• Need a nursing home-level of care (as certified by your state)
• Be able to live safely in the community with help from PACE