Money Does Matter
Updated: Oct 2
For many families, finances and the cost of Dementia care can be one of their greatest worries. Families hope they have enough assets to cover expenses for the next four to 10 years. According to a Care.com Usage and Attitude Family Caregiver survey, in 2014, over 50 percent of families spent more than $5,000 per year to cover out-of-pocket expenses. The same survey found that 7 percent of respondents reported spending more than $50,000 per year to cover their loved one's care costs.
Talking about personal finances is often difficult. To make these initial family discussions as smooth as possible, invite an elder-care lawyer, a financial advisor, or a geriatric care manager to guide the discussion and offer their expertise. The goals of this and ensuing conversations are to define needs and expenses, and based on this information, develop a realistic financial plan.
Dementia care is more than house utilities and groceries. Home expenses also include rent or mortgage payments, home maintenance, home and car insurance, and assorted federal, state, and local taxes. Dementia care also involves the out-of-pocket deductibles and co-pays associated with the diagnostic procedures and treatments for Dementia and any other medical conditions your loved one may have. Don't overlook expenses like personal care supplies, equipment rentals and purchases, adult daycare, and assisted living fees. Sadly, your loved one may have neither sufficient savings nor income to pay for the services he or she needs.
Finding the Money for Dementia Care
What happens then? Sometimes families can and are willing to pay the difference — and sometimes not. Long-term care insurance is expensive, must be purchased well before you need it, and is not long-term in the sense of “forever care.” Often families must resort to state- and federally funded programs. Medicare (Parts A, B, and D) and most private insurance policies pay only for expenses not related to Dementia. However, your loved one may be eligible for Dementia coverage under one of several Medicare Special Needs Plans or "SNPs.”
Other avenues are worth exploring, each with specific eligibility requirements. Some of these include Medicaid, a program that helps very low-income people get the healthcare they need, and the Program of All-Inclusive Care for the Elderly (PACE), which provides comprehensive medical services to Medicare and Medicaid enrollees.
The United States Veterans Administration (VA) offers a broad range of services to help veterans living with Dementia. To use VA programs and services, the veteran must be enrolled in the VA healthcare system. While the veteran does not need a service-related injury to receive Dementia benefits, the veteran must have an honorable or general discharge.
Other strategies to supplement your loved one's income include a Home Equity Conversion Mortgage (reverse mortgage), converting certain kinds of life insurance into long-term care insurance, and borrowing against the value of a life insurance policy. Disability insurance is another resource when Dementia makes employment no longer possible.
Community not-for-profit organizations offer many helpful services, from household repairs and yard maintenance to elder daycare programs and caregiver respite grants. Sliding scale fees are another not-for-profit feature. Therefore, your loved one must meet eligibility criteria to receive a reduced rate.
In summary, money does indeed matter in the setting of Dementia, and advance planning is important to provide optimal care for those individuals with Dementia.
Content Contributor: Janet Yagoda Shagam, Ph.D., is a freelance medical and science writer and the author of "An Unintended Journey: A Caregiver's Guide to Dementia.", available through Amazon. Please visit our Author's page to learn more and find this title.
Disclaimer: Dementia Society of America (DSA) provides educational content only and does not offer medical advice. Always consult a qualified healthcare professional before making changes to your medical care. DSA content is created by both human and computer-generated means and is reviewed for accuracy; however, errors may occur. Views expressed by third-party contributors do not necessarily reflect those of DSA. Unless expressly stated, DSA does not endorse or guarantee any third-party products, services, organizations, or external content. All DSA content is copyrighted and/or trademarked and may not be used without written permission.
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