Insurance Options for Paying for Senior Living

Insurance Options for Paying for Senior Living

The expense of retirement to a senior living community can often be the biggest drain on your finances. According to Genworth’s Cost of Care Survey, the median cost of assisted living and nursing home communities in the Worcester area is $5,685 per month.

You may already have various insurance policies but haven’t considered that they may help to pay for senior living expenses. The good news is that insurance can cover the costs of senior living. However, when it comes to using insurance for senior living expenses, it may be confusing.

Before moving into a senior living community, it helps to understand what insurance covers and how. Here is everything you need to know about insurance options for paying for senior living.

Does Medicare Pay for Senior Living?

Unfortunately, Medicare does not cover room and board or activities of daily living in senior living communities. However, Medicare can cover some of the additional medical costs that may be incurred when living in a senior living community.

Does Medicaid Pay for Senior Living?

Medicaid is a federal and state program that covers health care and long-term care for people with low income and limited assets. Medicaid can cover some senior living options and expenses for seniors who meet the eligibility guidelines. Medicaid eligibility requirements vary between states, so check your state requirements.

Does Long-Term Care Insurance Pay for Senior Living?

Long-term care insurance can help cover some of the costs of senior living not covered by Medicare or private medical insurance policies. Most long-term care insurance policies will pay for costs incurred in assisted living communities, nursing homes, and even in-home care.

For costs to be covered in a senior living community, a person must require help with at least two activities of daily living (ADLs), such as bathing, toileting, dressing, transferring, or feeding.

Long-term care insurance will reimburse senior living residents a daily amount for assistance with activities of daily living.

Coverage varies based on each specific policy. Making sure you speak with an insurance provider to know what your policy covers before moving into a senior living community is essential.

Do Life Insurance Policies Pay for Senior Living?

We typically think of life insurance policies for death benefits. But life insurance policies can be a financially savvy way to cover expenses incurred in a senior living community, among other funding sources.

If your life insurance policy has a cash value, consider cashing in your life insurance policy to pay for senior living expenses. Consult your financial advisor or tax professional to understand the pros and cons of cashing in a life insurance policy.

About Notre Dame Health Care

Notre Dame Health Care (NDHC) offers a range of post-acute programs and services to the community, including an Assisted Living Residence; Adult & Pediatric Hospice and Palliative Care; Post-Acute Recuperation; Short-Term Rehabilitation; Skilled Nursing and traditional Long Term Care; Specialized Memory Care; and an educational resource center which serves our employees and community. We embrace the individuality, spirituality, and wholeness of each member of our community, including our residents, patients, families, volunteers, and staff.

Notre Dame Health Care is proudly non-profit and honored to carry on the mission of the Sisters of Notre Dame de Namur to care for the sick and vulnerable and to educate for life through our NDHC Educational Bridge Center.

Notre Dame Health Care
555-559 Plantation Street
Worcester, MA 01605
(508) 852-5800