How will you pay for long-term care?
Nobody wants to think about it, but how will you pay for long-term care for yourself? It’s one of the most important financial issues you’ll face during your retirement: How will you pay for senior care if your family can’t take care of you? Maybe you are also asking this same question about an aging parent?
Several funding methods exist today to pay for the cost of senior care. The most common are assets (cash), insurance (long-term care insurance or life insurance), Veterans Administration benefits, Medicaid, reverse mortgages, and trusts.
Did you know...a minimum of 3 years private pay is required in most assisted living facilities in Wisconsin and if the bills aren’t paid, they will expel your loved one from the facility? If that wasn’t bad enough, new living arrangements will need to be made quicker than you might expect.
In Wisconsin, the cost of most high quality assisted living facilities ranges between $48,000 – $84,000/year while skilled nursing homes range from $85,000- $131,000 annually. For many families, these costs quickly reduce a family’s hard-earned assets down to nothing – especially when you factor in medication, health insurance premiums and other needs that might come up. So questioning “How will we pay for long-term care” is an important question!
Understand the definition of “senior care.” We like to define senior care as independent living, assisted living, continuing care retirement communities, memory care facilities, nursing homes, hospice care, and in-home care.
Know the primary funding categories. In Wisconsin, there are three primary funding sources to assist in paying for senior care: 1) government programs, including Medicaid and veterans benefits; 2) insurance coverage, including life insurance and long-term care insurance; 3) and personal property and assets, including a family’s resources and home equity.
Get a feel for the costs. Here are the median rates in the State of Wisconsin according to Genworth Cost of Care Survey.
- $9,555 per month for a semi-private room in a nursing home
- $10,448 per month for a private room in a nursing home
- $4,264 per month for care in an assisted living facility (for a one-bedroom unit)
- $1,408 per month for Adult Day Care Services
- $4,767 per month for Home Health Aide
Understanding and successfully navigating the confusing maze of choices and programs from application to qualification is beyond the abilities of most individuals, especially those under stress. Attaining entitlement eligibility allows for the preservation of assets for the future care needs of an individual and his or her spouse and family.
We research and educate clients on all available strategies permitted under federal and state law. We take advantage of the variations of rules in Wisconsin to obtain the best outcome for our clients.
Our staff has been helping seniors with T-19/Medicaid planning for well over sixteen years. We have a private benefit specialist working with our Elder Law Attorney who are dedicated to provide you with the newest information regarding asset protection planning. We sit down with each family on an individual basis and help you determine the best way to pay for care for your family situation.
If you still have questions or are ready to move ahead, please call our office at (262) 670-8888.
Article written by: Erika LaPean, Benefit Specialist