September 25, 2017
Caring for someone with Alzheimer’s or another form of dementia can be very expensive. While there are some federal and state programs to help mitigate the outlay of funds, careful planning and estimating are going to be critical in maximally extending your budget. Many people are surprised to learn that health insurance doesn’t pay for long-term in-home or residential care, and in order to qualify for state or federal aid, one must spend down their assets almost entirely, leaving no semblance of a safety net.
Prior to a discussion of the financial resources available to assist someone with Alzheimer's, it is wise to research and understand the different types of Alzheimer's and dementia care, how they differ from home care or assisted living, and what these services typically cost. It’s also helpful to remember that as dementia progresses, someone will go from needing very little care in the early stages to needing total, round-the-clock care at the end of the disease. In the San Francisco Bay Area, for example, in-home care costs can range from $20/hour (for traditional home care agencies or private caregivers) to $45/hour or more (for specialized one-on-one dementia care agencies like Tender Rose).
Many people are shocked to discover that Medicare does not cover the long-term custodial care that Alzheimer's patients need, such as non-medical care associated with activities of daily living, like bathing and dressing.
When you’re putting together your financial strategy, carefully consider the following:
Take inventory - Review your client or loved one’s financial documents to better assess their situation (documents might include: monthly bills, financial statements from banking institutions, credit card statements, pension and retirement paperwork and social security or other benefit summaries).
Determine your role - From paying bills and managing paperwork to filing tax returns and handling insurance claims, it’s good to figure out precisely what you’ll be managing (or providing funds for) on a regular basis.
Estimate costs - Compile a list of short-term and long-term costs, including healthcare, insurance, housing, personal care supplies, prescriptions, adult day services and in-home services.
Explore insurance and other benefits - Your client or loved one may have a long-term care insurance policy or be eligible for veteran’s benefits.
Discuss with your support network - Check in with other family members or friends of the client or loved one to see who is willing and able to provide financial assistance for dementia care.
For most families, the expenses of caring for a loved one with Alzheimer's or another type of dementia are covered not by a single source, but instead by contributions from a variety of sources. Putting a plan together early in the process will reduce stress and help you feel organized and prepared for the road ahead.
