Discover Financial Support for Caring for Elderly Parents
Taking care of elderly parents is one of the most beautiful, and at the same time, a demanding task that most of the grown-up children are faced with. But while it can also be a financial burden. But with the aging population, more families are looking for a way to help their relatives but they also do not want to ruin their own financial situation. However, thankfully there are many types of financial assistance available to help lighten this load.
Knowing the Financial Obstacles
Elder care cost could be really expensive that includes medical care, home modifications and daily living requirements. The national median cost for a home health aide was $5,148 per month, and a private room in a nursing home averaged $9,034 monthly1, according to Genworth's 2021 Cost of Care Survey. These expenses drain savings quickly so it helps to find whatever free financial assistance is still available.
Government Programs
There are many government programs that help you meet the cost of elder care:
Medicare: Although Medicare is known as a health insurance program, it provides only limited benefits for home health care and skilled nursing facilities. Understanding what Medicate Parts A & B covers, so you can take full advantage of the benefits2
Media: Medicaid Covers Significantly More Long-Term Care, Including for Nursing Home Care It is free, but you need to meet certain income-based criteria which vary by state. Medicaid waivers for home and community-based services to help seniors stay in their homes are also available in some states3.
Veterans Benefits: The Department of Veterans Affairs (VA) offers benefits for qualified veterans and their dependents. One of these programs is the Aid and Attendance benefit, which provides increased financial aid to certain veterans and surviving spouses who need assistance with daily living4.
Choices in Private Insurance and Bank Deposits
And so private insurance and savings plans can also be an important part of this besides government assistance:
Long-term care insurance: This insurance can cover services such as in-home care or nursing facilities. Policies can differ significantly; before committing to a purchase it is important to compare and clarify the specifics of the coverage.
Health Savings Accounts (HSAs): HSAs are tax-preferred accounts designed for qualified medical expenses, but some long-term care costs are also eligible. Funding an HSA can be a clever tactic to prepare for elder care down the line.
Tax Deductions and Credits
Providing elder care for a parent can even lead to a tax deduction! So maybe you support your parent more than half of their support might be provided by you and you might be able to claim them as a dependent which in turn could qualify you for something like the child and dependent care credits. Finally, the IRS provides Child and Dependent Care Credit for money you spend caring for a dependent,6 which could also apply to elder care5.
Employer Assistance Programs
Elder care benefits (included under some employee assistance programs) That might include flexible work hours, paid time off or even elder care resources and counseling. So they are worth asking your employer for, as those benefits take some of the pressure and financial weight off of the shoulders of caregivers.
Support and Resources for (or within) the Community
Community organizations and non-profits usually provide resources and support for caregivers. These services can include respite care, support groups or education workshops. For example, the National Family Caregiver Support Program makes state grants to support a number of caregiver support services in 6.
In short, although caring for aging parents is costly and requires financial assistance, there are a variety of resources & programs available to help caregivers. From government services to private insurance, tax benefits to community amenities, these resources help families access the support they need to care for their loved ones without risking their own financial stability.