Is Private Pay Home Care Right For You?

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It is essential to find the right home care services for your loved ones and to know whether private pay home care is right for you. As there are a variety of service providers who accept different payment methods, it can be a challenging process to deal with. This post will provide you with greater insight regarding the ways to pay for your home care services.

No matter which service provider you choose, it is important to communicate and understand your loved one’s financial situation. Here are some of the questions that you might need to ask for this purpose;

  • What assets, savings, and income are available?
  • Did your loved one or spouse serve in the military?
  • Does your loved one have long term insurance? If yes, who is the provider and what does it cover?
  • What health insurance do they have? What and how much does it cover?


There are several
ways to pay for home care services. The most common of them are private pay or “Out of pocket” (cash, check, credit, or trust), long-term care insurance, private health insurance, Medicaid, Medicare, and veteran aid benefits. Each of them has different eligibility requirements and service limitations except for private pay home care. There can be times when you require a combination of these services to get the right care solution for your loved one. Preferred Gold is able to provide every single client with a personalized plan of care for this reason. Contact us today for more information. 


Private Pay Home Care “Out of Pocket”

Paying for home care services through personal funds gives you flexibility for seeking care services. Private pay allows you to work in collaboration with your loved one’s doctor or private home care provider/agency to tailor their care plans as per their requirements. This can include meal preparation, housekeeping, feeding, and companionship to medical management, medicine administration and wound healing, etc.

In addition, private pay helps you cover some additional services that can replace and substitute the limited services provided by other sources like medicare or Medicaid as well as the “elimination period” before the long-term policy starts to pay benefits.

Many families choose the option of private pay for home health services. The possible sources used to cover private pay are individual retirement accounts (IRAs), health savings accounts (HSAs), pensions, investments, annuities, real estate, and social security benefits.

Another private pay option is “Using a reverse mortgage to pay for home care”. It is a loan that allows people with substantial home equity to receive payment (cash) by borrowing against the value of their homes. They can use that money to pay for home care, home modifications for aging in place and they can also buy long-term insurance. Note that reverse mortgage gets due if the owner sells the home, moves from the home, or passes away.


Does medicare pay for home care services?

Medicare home health agencies provide services based on a doctor’s prescription. These services are also based on the patient’s condition and are usually provided for a limited period of time. Typically, Medicare covers just a few personal visits excluding companionship and supportive care services. 


Long-term Care Insurance

Long-term care benefits help to pay for in-home care assistance such as for the activities of daily living including bathing, feeding, dressing, toileting, etc., and assistance with the tasks like meal preparation, light housekeeping, medication reminders, and more in their own comfort zone. 

Perks for Military veterans and their spouses

The veteran aides and attendance pension provide a pension to qualified veterans and their surviving spouses. This pension covers their in-home assistance cost including activities of daily living. 


Medicaid Payment Method

Medicaid covers the cost for a doctor’s appointment, medicine therapy, hospital expenses, medical equipment (relevant to the patient’s condition), and other additional services. Every state has a plan that includes all the services that are covered under the Medicaid Waiver program. Remember that each state has a different plan so consult medicaid.gov to learn more about it. 

You may be eligible for the Medicaid home and community-based service (HCBS) waiver program if you:

  • Have income and assets below certain guidelines.
  • Meet your state’s level of care or functional eligibility requirements for home care services.

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