How to Pay for Family Elder Care

Funding family elder care is a responsibility faced by many with elderly relatives. In addition to private insurance, there are a few government programs available to assist you in covering the expenses. Solutions vary depending on the level of care your dependent requires and your family's finances.

Instructions

• 1

  Evaluate your elderly relative's needs. Options include long-term care (LTC), short-term physical rehabilitation or assistance with activities of daily living (ADLs) on an ongoing or limited basis. Elder care can also include regular visits to an adult day care center.

• 2

  Check for any long-term care insurance the elder may have. Also check for long-term disability insurance, which differs markedly from long-term care insurance but may be helpful if the dependent is under 65.

• 3

  Review your financial situation and that of your elder. Most forms of family elder care require a financial contribution from the elder and the family. Some living options, such as assisted living facilities, must be paid entirely with private funds as Medicare and most state-funded Medicaid programs do not cover them.

• 4

  Find out what federal Medicare coverage is available to pay for family elder care. Medicare may provide benefits for in-home health aides and will cover the cost of rehabilitation treatments at a nursing home on a short-term basis.

• 5

  Research Medicaid coverage in your state. Medicaid may cover the long-term care of a family elder in a nursing home. Medicaid benefits vary, but normally you must meet income eligibility criteria and exhaust other sources of income before you can receive any benefits.

• 6

  Ask if your employer has a health care savings plan, or "flex" program. If so, you may able to deposit funds tax-free and use them during the year to cover expenses related to care of a dependent family elder living with you.

• 7

  Contact your Area Agency on Aging for information on local community groups that may provide financial assistance for family elder care. Some community groups also free adult day care, medical care or medical equipment.