Paying for care
Private pay
Private pay means a family pays for care directly from its own money. Sources include income, savings, retirement accounts, long-term care insurance benefits, and other private funds. No government program pays the provider. Most ongoing non-medical home care is paid this way.
Why it matters for your family
The Administration for Community Living says most people use a mix of private options, because public programs help only some people. Medicare does not pay for ongoing custodial care. Families who pay privately can usually choose a provider and the schedule. They also carry the full cost. A common mistake is to plan for a few months and then run short. Ask any provider for a written rate and how billing works. Look at all sources, such as insurance, veterans benefits, and tax breaks. A tax professional or elder law attorney can help.
Source: acl.gov
Read more: Cost of home care by state and city
Related terms
- Cost of home careThe cost of home care is the amount a family pays for in-home help.
- Long-term care insuranceLong-term care insurance is a private policy that pays for help with daily living when a person can no longer manage alone.
- Medicare coverage of custodial careCustodial care is non-skilled personal care, such as help with bathing, dressing, eating, and using the bathroom.
- Veterans Aid and Attendance benefitThe Veterans Aid and Attendance benefit is an extra monthly amount added to VA pension.
- Medical expense tax deductionThe medical expense tax deduction lets people who itemize deduct medical and dental costs above 7.5 percent of adjusted gross income.
- Reverse mortgageA reverse mortgage is a loan that lets homeowners borrow against home equity without making monthly mortgage payments.
