Who Pays for This?
Surprisingly, the vast majority facing this situation for the first time have the notion that Medicare will pay for all services needed, and if not, the supplemental policy will cover it. It can be quite a rude awakening to discover custodial care is not covered. This is an out-of-pocket expense and can be quite costly.
While skilled care may be covered, in most instances this is intermittent and only for infrequent visits. Not even all long-term-care policies will cover all forms of custodial care. If they do, they will most likely have financial limits that may not cover all expenses.
National averages for custodial care are staggering and increasing at a constant rate. A skilled nursing facility can cost an average of $6,200 per month. An assisted-living facility runs about $3,000 per month for the basic housing fee. Assistance costs are added on to this. For instance, if your parent needs assistance with bathing, medication dispensing, special meals, or getting to and from the central dining area, you'll pay for this.
It is also important to understand that they have to be able to walk to live in most of these facilities. A walker or cane is okay, and you can usually pay for someone to walk with them, but they can't be in a wheelchair even if they can transfer themselves. If they are confined to their bed or room or need a wheelchair except for a very short term, they'll have to be moved to a skilled nursing facility.
The national average fee for a private certified nurse's aide or home-health aide is $19 per hour. A licensed practical nurse can run you about $32 per hour, and if you need a registered nurse, be prepared to pay about $50 per hour.
The cost of long-term-care policies can be frightening, but when you consider what they will cover and how much out-of-pocket expenses can quickly add up to, they can be a necessity. The younger you are when you purchase a policy, the less expensive it will be.
