Memory Care vs. Long-Term Care. How Can You Pay for It?

By MRE Finance LLC

 

Is memory care the same as long-term care? This is a common question that many ask when deciding the best care for a loved one with Alzheimer’s, other types of dementia or serious medical conditions requiring specialized care. When faced with this situation, understanding the diagnosis, type of care needed, cost and the type of facility is important. Before making any decisions, determining the amount of attention and care needed is the first step. Working with your loved one’s doctor to understand their needs; such as cognitive functions, mobility and medications is integral to formulating a plan for care. This information will help determine the best type of facility to ensure the appropriate level of care.

 

What is the Difference Between Long-Term Care and Memory Care?

Long-Term Care

 

People often need long-term care when they’ve suffered a serious health issue, such as a stroke, or have an ongoing health condition or disability. Whether care is at a trusted facility or at home, long-term care involves a suite of services tailored to meet the patient’s health and personal needs. Some seniors require assistance with activities of daily living such grocery shopping, housekeeping, transportation, bathing or eating.  Depending on the patient’s health, long-term care is designed to provide these to maintain mental and physical health. The point of long-term care is to allow the resident to live as independently as possible while under medical care.

 

Often, sudden events, such as heart attacks or strokes require long-term care.  With most long-term care facilities, you can expect transportation, bathing and assistance with activities of daily living which are often difficult or impossible for the patient. The assistance needed for daily living activities can be provided in the home as well. Many patients receiving long-term care can complete cognitive function tasks enabling them to live more independently. Therefore, concerns of patients wandering off, as may occur in a memory care facility, are minimal.

 

If your loved one has a life insurance policy, review the policy to determine if it contains a long-term care rider or if they own a separate long-term care policy. The cost of long-term care is expensive and life insurance policy riders or policies can help subsidize the costs.

According to the National Institute of Health (NIH), “How people pay for long-term care—whether delivered at home or in a hospital, assisted living facility, or nursing home—depends on their financial situation and the kinds of services they use. Often, they rely on a variety of payment sources, including personal funds, government programs, and private financing options.” There are several ways to pay for long-term or memory care.

Another option is selling your loved one’s life insurance policy for a lump sum cash payout. The sale of a life insurance policy is called a “Life Settlement” and can provide the necessary finances needed to pay for cost of care.

Medicare and Medicaid

According to medicare.gov, “Medicare doesn’t cover long-term care if that’s the only care you need. You pay 100% for non-covered services, including most long-term care. Long-term care is a range of services and support for your personal care needs. Most long-term care isn’t medical care. Instead, most long-term care is help with basic personal tasks of everyday life like bathing, dressing, and using the bathroom, sometimes called “activities of daily living.”

Medicaid is a joint federal and state program that is federally subsidized insurance that helps with medical costs for those eligible based on income and personal resources. In most states, seniors aged 65 and older can qualify for regular Medicaid assistance if their monthly income is below $2,349 per month Most health care costs are covered if you qualify for both Medicare and Medicaid. Some nursing homes will accept Medicaid payments. Even if you pay out-of-pocket or with long-term care insurance, you may eventually “spend down” your assets while you’re at the nursing home, so it’s good to know if the nursing home you chose will accept Medicaid.

To get more information on Medicaid eligibility in your state, call your state Medicaid office.

Medicaid Waiver Programs

Memorycare.com states “Many states offer assisted living waivers, which amend the terms of regular Medicaid coverage to allow seniors to receive long-term care in assisted living or memory care facilities instead of nursing homes. This type of waiver helps states reduce their Medicaid costs by providing seniors with less expensive long-term care options. Waiver programs also allow seniors to live in facilities that are better suited to their needs. Unlike regular Medicaid, waiver programs are typically not entitlement programs. That means that instead of qualified individuals automatically receiving approval for benefits, they’re required to apply for assistance. If a program is at capacity, they may be placed on a waiting list until a spot is available.”

Medicare Part A:

Covers inpatient hospital care, skilled nursing facility care, nursing home care, hospice care and home health care. Short stays in a nursing home for hospital-related medical conditions will usually be covered.

Program of All-Inclusive Care for the Elderly (PACE)

The NIH (National Institute of Health) reports that “Some States have PACE, Program of All-Inclusive Care for the Elderly, a Medicare program that provides care and services to people who otherwise would need care in a nursing home. PACE covers medical, social service, and long-term care costs for frail people. It may pay for some or all the long-term care needs of a person with Alzheimer’s disease. PACE permits most people who qualify to continue living at home instead of moving to a long-term care facility. You will need to find out if the person who needs care qualifies for PACE. There may be a monthly charge. PACE is available only in certain States and locations within those States”.

Department of Veterans Affairs

“The U.S. Department of Veterans Affairs (VA) may provide long-term care or at-home care for some veterans. If your family member or relative is eligible for veterans’ benefits, check with the VA or get in touch with the VA medical center nearest you. There could be a waiting list for VA nursing homes.” (Veterans Health Administration).

Memory Care

 

The topic of memory care is typically an emotional subject for families.  If the time comes that your loved one requires assistance from a memory care facility, knowing the different ways to avoid out of pocket expenses is important. Due to memory care’s additional costs, most people must utilize savings to help subsidized the costs.

 

The demand for memory care facilities is increasing each year, making it more difficult to reserve a spot. Unlike basic long-term care facilities, memory care facilities provide specialized care and are specifically trained for residents with the unique issues of dementia or Alzheimer’s.

Facilities specializing in memory care provide extra security such as guarding exit doors to prevent residents wandering off premises.  Activities such as brain games, art classes, and music programs are designed to improve cognitive function and engage residents at different stages of the disease. Residents are assisted with tasks such as; taking medications, eating, bathing and are provided with cognitive therapy. The environment in these communities is designed to be safe and secure allowing the staff to track the resident’s movements.  Before deciding whether your loved one needs memory care or not, document notable changes in their behavior. Work with your loved one’s physician to ensure you receive a clinical diagnosis before deciding if they need long-term or memory care.

Differences in cost

 

The cost of long-term care can vary depending on which state you live in.  Overall, the higher the level of care and supervision needed, the more expensive it will be. Most individuals have to pay out of pocket for memory care.  Long-term care insurance policies or riders may cover a portion of a person’s long-term care expenses as they age. Standard Medicare and Medicaid do not cover the cost of long-term care or memory care facilities; however, most states have waiver programs that offer additional support.

 

Options to Cover Expenses

 

Life settlements are a common way for seniors to pay for memory care and long-term care.

 

Surprisingly, not many people know that their life insurance policy is one of the most valuable assets they own and could be sold for a lump sum cash payout that can be used to cover memory care or long-term care expenses. By selling a life insurance policy, known as a life settlement, your loved one can receive the care needed while eliminating expensive policy premiums.

 

Find out if your loved one’s life insurance policy is eligible to be sold with MRE Finance. They offer a FREE Life Settlement Calculator online to estimate the value of the life insurance policy in minutes, or you can call a specialist at 1-800-521-0770. MRE Finance can help you receive a significant payout for those that want to ensure their loved ones are safe, comfortable, and secure.

 

Conclusion

 

Deciding whether it’s time to move your loved one into memory care or long-term care facility is the beginning of the process. Understanding their needs can ensure they receive the best care for their needs.  Scheduling tours, meeting staff, and asking questions of the nurses, doctors, and staff will help you determine if the facility is the right one for your family. They may provide suggestions to help your loved ones adjust to their new surroundings.

 

After deciding which facility is best, find out what level of care is covered in your state. Review your loved ones’ life insurance policy as they may have long-term care coverage and consider how selling a life insurance policy can cover costs for care… Contact MRE Finance today to determine if your policy qualifies and receive a free estimate of the value of your policy. The cash you receive can be used to pay for memory care, long-term care or whatever you choose.

 

About MRE Finance LLC

MRE Finance brings over 25 years of experience in the life and viatical settlement industry.  Our mission is to educate and provide information to help seniors and those chronically ill live life with dignity and greater financial stability by assisting them in selling their life insurance policy. MRE Finance believes in being transparent with its clients and, above all respecting their privacy.

 

Website: mrefinance.com

Ph#: 1-800-521-0770