• At home: A large misconception exists that the government, through Medicare and/or Medicaid, will pay for care of an aging relative. Medicare, the federal insurance program typically for person's 65 and over, has very limited benefits to cover long-term care needs, either in a home or in a nursing home. Medicaid, a state-funded program typically for low-income persons, pays for the cost of in-home and nursing home care - as long as an aging relative's income is low enough to qualify for benefits. The majority of costs associated with a chronic illness or disability are assumed by the family and/or the care recipient and/or private insurance (including long-term care insurance). According to our latest annual family caregiver survey, about 50% of respondents spent as much as $500 per month on services (home health, medications, supplies). Many at-home care recipients depend on help from home health aides, trained professionals who assist with personal care, such as bathing and dressing, and provide light housekeeping, prepare meals and sometimes provide transportation. Home health aides can be hired through a home health agency or privately, by the family. According to the US Labor Department, home health aides on average, earn $8.17 per hour. The cost of hiring a home health aide through an agency will be higher somewhere in the range of $12 to $18 per hour. (Many families prefer to hire a home health aide privately a way to save costs. If you opt for this, check with your (or your care recipient's) homeowner's insurance agent to ensure adequate coverage of a in-home employee and with the IRS about tax implications. Also, consider hiring an agency that provides background checks. In addition, be sure you have a back-up plan in case the aide becomes ill, quits or just doesn't work out. You can purchase monthly agreements from companies that offer medication reminders and personal emergency response systems. These services can range in costs from $10 to $90 per month or higher; sometimes transportation is included in the cost. Meals on Wheels are available on a sliding fee scale, depending on care recipient's income level.
• Assisted Living Facility : Room and board in an assisted living facility (an aging relative lives in an apartment-like or homelike setting but can still receive assistance with personal care) may cost from $20,000 annually and upward. In addition to the cost of room and board in assisted living facilities, care recipients usually assume the cost of medications, supplies and personal care items. Make sure you understand potential additional costs,such as personal care items, bad checks, etc.
• Nursing Homes : The cost of room and board in a nursing home per year can range from $36,000 to $50,000 and higher, depending on geographic location and care needs. Average length of stay in a nursing home is 2 and 1/2 years. However, many older adults use nursing homes for temporary stays, to recover from a hospitalization (Medicare provides coverage for a short term rehab stay) or for placement so the family can take a break. In addition to the cost of the room and board in nursing homes, care recipients also assume the costs of medications , supplies and personal care items.