Paying for Care
Some older adults have adequate savings to cover long-term care expenses either in-home or in a facility, but most people do not. For millions of people who may not have relatives with the financial means to help or for those who live alone and have limited income and resources, paying for care can be a challenge.
The good news is that for low-income older adults who qualify, there are a number of options available on the federal, state and county level that may help with such expenses.
The average monthly cost of nursing home care in Virginia is more than $8,669 for a semi-private room and $9,825 for a private room, according to CareScout. The average monthly cost of in-home care for a home health aide is $6,292, according to Genworth and CareScout’s 2024 Cost of Care survey. Assisted living’s average monthly cost for a private room in Northern Virginia is $6,000, but some Reston facilities cost more.
It is a good idea to develop a plan regarding how you might pay for such expenses when the time comes. Take a close look at your finances, such as income, savings, and any investments or life insurance policies that might help with paying for care.
The federal National Institute on Aging has a good overview of how to consider costs.
Medicare
Medicaid
Long Term Care Insurance
Life Care at Home
Life Insurance
Reverse Mortgages
Veterans
Virginia Insurance Counseling
Medicare
Most older Americans over age 65 have Medicare to cover hospital and outpatient care. Sadly, Medicare covers only a limited amount of long-term services and support, such as home health care, when you need skilled nursing care or rehabilitation. This is despite the fact that most older adults will need long-term care at some point in their lives. Medicare does not cover long-term care in a nursing home. Virginia’s Insurance Counseling and Assistance Program (VICAP) can help you with questions about Medicare and Medicare supplement policies.
Medicaid
This federal/state program will pay for long-term care in a nursing home if you are low income with few remaining assets. You can qualify after spending down your income and any savings/resources (if you have them). People with Medicare may also qualify for Medicaid based on income, assets or high medical bills. Due to what’s called a state-based waiver, Virginia Medicaid will also pay for long-term services and supports, not just care in a skilled nursing facility/nursing home. This means you can receive long-term care at home if you qualify.
Long-Term Care Insurance
For some people, long term care insurance provides a safety blanket, because most policies will help pay for a prolonged stay in a nursing home. Some long-term care insurance policies include paying for care you may receive in assisted living or at home. Purchasing such insurance late in life can be prohibitively expensive, but compared to the cost of care it may be worth exploring. Be sure to know what you’re buying and what it covers before you sign anything! Virginia’s Insurance Counseling and Assistance Program (VICAP) may be able to help you with questions about long-term care insurance.
Life Care at Home
Goodwin Living at Home offers several financial plans that provide coverage for long-term care costs and coordination of care while you continue to live at home. It enables members to age in place rather than move to a retirement community. (703) 575-5202
Life Insurance
The insurance industry also offers hybrid life insurance policies that have a limited amount of long-term care insurance built in through riders that are sold at the time of purchase. For those with whole life insurance and cash value, one may borrow against the policy or cash it out if need be. Other insurance options include selling your policy to a life settlement broker. Some policies will also allow you to use some of your death benefits to pay for care if you are terminally ill.
Reverse Mortgages
Reverse mortgages may be a workable option for those over age 62 who have equity in their homes and need to pay for long-term care either in an institution or at home. But they aren’t the only option for tapping home equity. For example, you can use home equity loans to get a lump sum upfront. Or, you can use a home equity line of credit (HELOC), an option similar to a credit card, meaning you can borrow what you need.
Veterans
For veterans with Veterans Administration health care benefits, the VA may pay for long-term services and supports as well as care in assisted living or a nursing home. (877) 222-8387
Virginia Insurance Counseling and Assistance Program (VICAP)
VICAP counselors can help answer questions about Medicare, Medicare Advantage, Medicare Supplemental insurance, Part D, and Special Needs Plans for people who qualify for both Medicare and Medicaid. They can also help you navigate long-term care financing options. They can also assist with appeals, denials and identifying whether you are eligible for low-income subsidies. Unlike much of the advertising you see on TV about saving money on Medicare, this government service is free, unbiased, and confidential. (800) 552-3402