Managing the Cost of In-Home Care Services
By definition, in-home care, or private-duty care, is a non-medical service and therefore is not covered by traditional medical insurance or Medicare. While we make every effort to manage the cost of our services on behalf of our clients, the reality is that not everyone has the cash resources available to pay for the care they need. If you are concerned about the cost of paying out of pocket for home care, consider the various resources and products available that can help pay for services before you decide you can’t afford it.
Veteran’s Administration Aid & Attendance - Veterans and survivors who are eligible for a VA pension and require the aid and attendance of another person, or are housebound, may be eligible for additional monetary payment. These benefits are paid in addition to monthly pension, and they are not paid without eligibility to Pension.
Public/Not-For-Profit Agency Assistance
In Home Support Services- A home care program that helps elders, dependent adults and minors live safely in their own homes or other non-institutional settings. If you would like more information or if you would like to apply for IHSS, please call toll free at 1-888-960-4477.
Link to IHSS Brochure: http://dpss.co.riverside.ca.us/files/pdf/asd-3103-eng.pdf
Link to IHSS Application: http://dpss.co.riverside.ca.us/files/pdf/asd-soc295-eng.pdf
Inland Caregiver Resource Center- Since 1985, Inland Caregiver Resource Center (ICRC) has been helping families, friends, and the community cope with and manage the challenges of caregiving. The agency does this through a variety of services at no cost. To be eligible for services, a client must be caring for a loved one with a brain impairment that occurred after the age of 18 (ex. Alzheimer's, stroke, Parkinson's, traumatic brain injury, etc.) or be caring for a loved one 60 years of age and older in need of assistance with at least 2 activities of daily living. The agency also offers some supportive services to older adults 60 years of age and older living alone.
Senior/Disease Support Groups
Alzheimer’s Association - Respite care provides caregivers a temporary rest from caregiving, while the person with Alzheimer's continues to receive care in a safe environment. Using respite services can support and strengthen your ability to be a caregiver.
Long-Term Care Insurance – This is an insurance product that helps provide for the cost of long-term care beyond a predetermined period. Long-term care insurance covers care generally not covered by health insurance, Medicare, or Medicaid. Individuals who require long-term care are generally not sick in the traditional sense, but instead, are unable to perform the basic activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking
Conversion – This plan is a conversion of an in-force life insurance policy into a pre-funded, irrevocable Benefit Account. The Account is professionally administered and tax-free payments to a long term care provider are made monthly on behalf of the individual receiving care. It is a unique financial option for seniors because all health conditions are accepted and there are not wait periods, care limitations, costs to apply, requirements to be terminally ill or premium payments or fees. Policy owners have a legal right to convert an in-force policy into a Benefit Plan.
Life Settlement - A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit. There are a number of reasons that a policy owner may choose to sell his or her life insurance policy, including to cover the costs of in-home care.
Single-Premium Immediate Annuity – A Single Premium Immediate Annuity (sometimes referred to as an "SPIA") may be the right annuity for you if you are looking for payments that begin right away and continue for the rest of your life or for a specified period of time. The annuity is purchased from an insurance company with a single, lump sum amount called a premium. In return for your lump sum, the insurance company promises to make regular payments to you (or to a payee you specify) for the chosen length of time – most commonly for the remainder of your life, however long that may be.
Pre-Paid Homecare Plan - Different than Long Term Care of Life Insurance, this product is not insurance, but rather a service contract that provides pre-paid home care services. Based on the plan level purchased you receive a certain number of care service hours that can be provided either by a contracted agency or a friend or family member.
Pension Protection Act Annuities - The Pension Protection Act of 2006 brought about several changes to the long-term care marketplace. It altered the tax treatment of so-called “hybrid” life/LTC and annuity/LTC policies, allowing benefits to be received tax-free even while premiums are extracted from the policy without being taxed as a distribution (instead they reduce cost basis). It also altered the Section 1035 rules to allow traditional annuity and insurance policies to be exchanged on a tax-deferred basis for the newly blessed hybrid policies. But in a little known provision, the Pension Protection Act authorized another new form of 1035 exchange: not merely going from a life or annuity policy to a hyrbid LTC policy, but also exchanging a life or annuity policy for a standalone, traditional LTC policy.
Federal Tax Credit for Elderly Dependent Care - The Child and Dependent Care Credit is also referred to as the Elderly Dependent Care Credit or the Aging Parent Tax Credit. It is a tax credit for expenses an individual or family incurs for the care of a dependent (or other qualified person) sothat the taxpayer(s) are free to work. Home care or adult day care costs are examples of expenses which are eligible for this credit. The fees associated with care provided in skilled nursing facilities or at assisted living residences are not considered eligible because this care does not free the individual to be able to work.
IMPORTANT NOTE: While the examples above may provide solutions to you and your family for making home care affordable, SYNERGY HomeCare is not a qualified or licensed agent for any of these products. We will, however, be happy to refer you to qualified and experienced professionals who specializes in these products and is best suited to answer any questions you may have.