For example, let's say Lisa's parents, Bert and Amelia, are both 89 and really want to die at home. However, both are suffering from a variety of health issues. Lisa and her four siblings want to help, but they can't provide hands-on care for both parents personally, and they can't afford to fund it given that the median cost of non-medical caregiving at home is $80,080.
So, what options do Lisa, her siblings, and Bert and Amelia have in these difficult circumstances?
How can you get care covered for a parent at home?
The first thing that Lisa and her siblings must do is to figure out what kind of care Bert and Amelia need, and whether any insurance coverage may be available.
"It's incredibly important to know that Medicare and Medicaid pay for very different things," Stefanie L. DeMario-Germershausen, an estate planning attorney and partner at Angiuli & Gentile LLP, told Moneywise.
"For a terminal parent, the Medicare hospice benefit is the most valuable and most underused resource available," DeMario-Germershausen said. "Once a physician certifies a life expectancy of six months or less, it covers nursing visits, aide visits, medications, and equipment tied to the terminal illness at essentially no cost."
Unfortunately, Medicare generally won't cover most types of care at home until Bert and Amelia are close to death. And Medicaid might cover some care, but only after the parents have spent down their assets first.
"When it comes to paying for long-term care or living in a retirement home or assisted living facility, Medicare beneficiaries will need to use their own resources unless or until they become eligible for Medicaid," Whitney Stidom, Vice President of Consumer Enablement at eHealth, told Moneywise.
Medicaid is means-tested, and you typically must have very limited income and resources to get benefits. Unfortunately, this means Bert and Amelia might need to spend a significant portion of their savings if they want Medicaid to pay for the services they need to stay home. And even then, Medicaid may not provide all the care that Lisa and her parents are hoping for.
"Depending on the state and the waiver program your parent qualifies for, Medicaid may help pay for personal care at home," said Coach Michele Williams, who works with licensed home care agency owners. "However, getting 24-hour care through a Medicaid waiver is not common, and families should not assume that Medicaid will cover every hour of care they need."
