How Families can Navigate the Costs of Caregiving
In the article, “Paying for Your Loved One’s Care”, we itemized those common caregiving related expenses that are usually NOT covered by Medicare and/or private insurance. In some cases, privately purchased “long-term care” insurance will provide coverage for some of these needs:
Assisted living, including memory care
Nursing Homes (covered by Medicaid within certain financial requirements)
Home care (other than immediately post hospitalization or illness, NO maintenance)
Private duty, ongoing services of care aid at home
Transportation
Some medical equipment and supplies are covered, and some aren’t
Depending on your loved one’s illness and the financial and family resources they have, caregiving can have a significant impact on the financial stability of both the patient and the family members. Given the limited coverage from insurance, family caregivers spend an average of $7,954 on out-of-pocket costs related to caregiving, nearly 20 percent of their annual income, a 2017 AARP study found.
To cover typical daily needs as well as these extra expenses, you, or your family, may want to:
Conduct a family meeting to identify the expected expenses and clarify the resources available.
Identify any public (including VA) or private sources of financial support available (your NAN Navigator can assist)
Review the expenses to ensure continued need and best choice of service
Consider a family member taking on a “paid position” as a caregiver. If they can fill the role of private duty caregiver, you can create a Personal Services Agreement to detail responsibilities and outline payments.
