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Common Misperceptions about Who Pays for Long Term Care
To alleviate some of the confusion about programs that help with eldercare, we maintain this page which discusses common misconceptions about who pays for nursing home care, assisted living and home care. Also discussed are programs in development that one may have heard of but are not relevant to a wider audience.
1. Medicare
Many people assume Medicare will pay for assisted living, Alzheimer's / dementia and other long term care. It does not. At best, Medicare will help pay for short term skilled nursing. Read a summary of Medicare’s Long Term Care benefits or detailed explanation of Medicare benefits.
2. Eldercare Costs the Same Everywhere
There is a very large cost difference in home care, assisted living and nursing home care in different states, within the same state and even within the same city or town. From state to state the cost of residential care can vary over 300%. Within a state, one will find certain areas where the cost is twice as expensive as other areas, but most important is that the cost within the same area can be 50% higher or lower. For families, this is good news. By shopping around, it easily possible to dramatically lower one's care costs. Our organization has partnered to provide a free service which helps families to find the most affordable, yet high-quality care in their geographic area. Get help finding affordable care.
1. Medicare
Many people assume Medicare will pay for assisted living, Alzheimer's / dementia and other long term care. It does not. At best, Medicare will help pay for short term skilled nursing. Read a summary of Medicare’s Long Term Care benefits or detailed explanation of Medicare benefits.
2. Eldercare Costs the Same Everywhere
There is a very large cost difference in home care, assisted living and nursing home care in different states, within the same state and even within the same city or town. From state to state the cost of residential care can vary over 300%. Within a state, one will find certain areas where the cost is twice as expensive as other areas, but most important is that the cost within the same area can be 50% higher or lower. For families, this is good news. By shopping around, it easily possible to dramatically lower one's care costs. Our organization has partnered to provide a free service which helps families to find the most affordable, yet high-quality care in their geographic area. Get help finding affordable care.
3. Money Follows the Person (MFP)
This program is only for Medicaid-qualified individuals who currently live in nursing homes and wish to move into the homes of their families or the community. Learn more about the Money Follows the Person program and if it is available in your state and relevant to your situation.
4. Affordable Care Act (ACA)
This Act, signed into law by President Obama in March 2010, is umbrella legislation that reforms many aspects of health care but does not specifically provide financial resources to individuals.
5. Social Security Disability Insurance (SSDI)
SSDI is not an option for seniors, rather it is a program designed for those younger than 67 years old. Read more about SSDI here.
6. Older Americans Act
This act provides funding, to state and local agencies called Area Agencies on Aging which provide services that help seniors remain in their homes longer such as meal services. It does not provide money for long term care to individuals directly. For more information visit the Adminstration on Aging’s webpage.
7. Fannie Mae Home Keeper Reverse Mortgages
This program was discontinued in September 2008. Other similar home equity conversion programs still exist; read about other reverse mortgages and long term care.
8. Community Living Program Grants
These grants are provided to the states for the development of programs; these grants are not direct assistance provided to families. However, families may still benefits indirectly from these programs; read more about Community Living Grants and Nursing Home Diversion programs.
9. The CLASS Act
The CLASS Act is a government sponsored long term care insurance program this is not expected to have a positive financial impact for seniors for several years to come. Read more about The CLASS Act.
This program is only for Medicaid-qualified individuals who currently live in nursing homes and wish to move into the homes of their families or the community. Learn more about the Money Follows the Person program and if it is available in your state and relevant to your situation.
4. Affordable Care Act (ACA)
This Act, signed into law by President Obama in March 2010, is umbrella legislation that reforms many aspects of health care but does not specifically provide financial resources to individuals.
5. Social Security Disability Insurance (SSDI)
SSDI is not an option for seniors, rather it is a program designed for those younger than 67 years old. Read more about SSDI here.
6. Older Americans Act
This act provides funding, to state and local agencies called Area Agencies on Aging which provide services that help seniors remain in their homes longer such as meal services. It does not provide money for long term care to individuals directly. For more information visit the Adminstration on Aging’s webpage.
7. Fannie Mae Home Keeper Reverse Mortgages
This program was discontinued in September 2008. Other similar home equity conversion programs still exist; read about other reverse mortgages and long term care.
8. Community Living Program Grants
These grants are provided to the states for the development of programs; these grants are not direct assistance provided to families. However, families may still benefits indirectly from these programs; read more about Community Living Grants and Nursing Home Diversion programs.
9. The CLASS Act
The CLASS Act is a government sponsored long term care insurance program this is not expected to have a positive financial impact for seniors for several years to come. Read more about The CLASS Act.
