Funding your Skilled Nursing Facility Stay

We’ve spent all week celebrating skilled nursing care and paying tribute to our amazing staff, residents and families. The American Health Care Association, who established this special week back in 1967, says NSNCW provides an opportunity to recognize the role of skilled nursing care centers in caring for America’s seniors and individuals with disabilities.

And it’s an important role. Approximately 15 percent of the US population is over age 65, and a large portion of them will need skilled nursing care in the next five years. One of the first things seniors and their families ask when they find out they need skilled nursing care is, “How will I pay for this?” Nursing home care can cost a pretty penny; the average price in New Jersey hovers around $100,000 a year. So what’s a middle-to-lower class senior supposed to do when they need the specialized care only a skilled nursing facility can offer?

Financial experts recommend you start planning your long-term care in your 50s or earlier. This can include opening a savings plan to self-fund your care, taking out a long-term care insurance plan, or some combination of the two. But even if you or your parents haven’t planned for long-term care, you still have options.

Who Funds Long-Term Care?

Many people assume Medicare will cover their long-term care needs. In truth, Medicare only covers the first 100 days of nursing care, and then only when certain conditions are met. Think of Medicare as the option for short-term nursing care. If, for instance, your parent needs a few months of rehab after a nasty fall, Medicare will cover their inpatient rehab and skilled nursing care. The general expectation is that your parent will recover and be able to move back home after a short time.

In long-term situations, the patient must either pay privately or get onto Medicaid to cover their care. Medicaid is state-run health insurance for the needy. However, many middle-class seniors find that joining Medicaid is the best option for funding their nursing home stay. To qualify for Medicaid, you generally have to exhaust all your assets. There are many legal ways to lower your net worth to the point where you can be eligible for Medicaid. Some of those options include an income spend-down or creating a trust.

Here are some articles about Medicaid and the application process, written by Regency’s own Judah Gutwein, L.N.H.A.:

Let Me Educate you on Medicaid Eligibility, on njnursing.com

Medicaid Medically Needy Program, on wellness.com

Applying for Medicaid, on senioradvisor.com

Medicaid Specialist vs Elder Law Attorney, on senioradvisor.com

Medicaid Personal Needs Allowance, on njnursing.com

And of course, feel free to contact us directly at Regency Nursing  if you have any questions about applying for Medicaid.

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