- According to Genworth research, the median cost of a single room in a nursing home is over $100,000 a year, and over $60,000 a year for a home care assistant.
- Family caregivers spend more than a quarter of their annual income on caregiving costs, according to a 2021 AARP report.
- Medicare and most health plans don’t usually pay for long-term care.
- Here are five steps that can help prevent burnout and financial stress for many family caregivers.
Estimate 48 million Americans I am caring for someone over the age of 18. Many of them are families caring for aging parents or older relatives, whose unpaid care is estimated to be worth about $600 billion annually. Recent report by AARP.
Daphne Taylor, Debbie Taylor and Sherria Miller know firsthand the costs of caregiving. The sisters began caring for their 87-year-old mother after she had a stroke four years earlier. Coincidentally, the three retired around the same time.Miller and Debbie Taylor live in Alexandria, Virginia, while Daphne Taylor lives in Washington DC
“At first we said, ‘Okay, this is our life,'” says Debbie Taylor, now 63. He recalled how he intervened to provide care in mother at home.
“It was all a learning process,” said former project manager Daphne Taylor, 65. She spearheaded the creation of a spreadsheet to coordinate care, track medications, and track the mother’s progress. She is frustrated with the ups and downs of her mother’s health and the adjustments she needs to make to the services she needs, she said. “I have always been able to do what society is supposed to do,” said Daphne.
Sheria Miller, Debbie Taylor, and Daphne Taylor, who live in the Washington, DC area, are caring for their mother, Ernestine Taylor.
Managing medical-related and long-term care costs is also a challenge. Seeking to arrange treatment quickly and efficiently, the sisters paid out-of-pocket for medical equipment not covered by Medicare or insurance, transportation, a $5,000 hospital bed, and other necessities.
“We try to take care of her 24/7,” Debbie said. “There is no time in the world to try to figure this all out.”
Alternative means of becoming the mother’s primary caregiver are also costly. According to one study, the median cost of a single room in a nursing home is over $100,000 a year, and over $60,000 a year for a home care assistant. Genworth investigation.
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Meanwhile, one study found that family caregivers spend more than a quarter of their annual income on caregiving costs. 2021 AARP Report. Many of them have stopped saving or taken on more debt to pay for the costs.
Barry Glassman, a chartered financial planner and CNBC FA Council member, says that pre-planning for long-term care can reduce some of the financial burden, but few families actually do it. Say. “When people in their 80s need help, or what kind of help they need,” said Glassman, president of Grassman Wealth Services, which has offices in Vienna, Virginia. It’s hard because I don’t know at all what it will be like,” he said. and North Bethesda, Maryland.
Experts say these five steps can prevent burnout and financial stress for many family caregivers.
Medicare and most health plans don’t usually pay for long-term care. However, if the elderly or U.S. veteran is eligible for Medicaid, there is a good chance that the family will receive care payments.
Family caregivers may be eligible for Medicaid payments depending on their state of residence. The amount of funding depends on the needs of the elderly and the average wages paid for home health care assistants in that state. Go to the American Council on Aging website. medicaidplanningassistance.org Find out if your loved one qualifies for the Medicaid Long-Term Care Program that pays family members.
In many states, veterans can manage their own long-term care, including choosing caregivers who are part of the family, and military pensions can also cover care costs.U.S. Department of Veterans Affairs Caregiver Assistance Program website We can provide more information about how veteran caregivers qualify for financial assistance.
Also consider getting respite care for your loved one. Families have limited options for receiving care costs, but they may be able to get help by paying someone else to get some time off. Check for state and federal grants, as well as private funds available to pay for respite care. ARCH Respite Network and Resource Center website.
Find out about other government health and disability programs in your state, as well as specific disease-focused nonprofits that provide funding for caregivers, at: Family Care Alliance website.
If you live with an elderly parent or relative Eligible as a dependent, Based on your federal tax return, you may be able to apply as a dependent.
can be deducted medical and health-related expenses For yourself, your spouse, or dependents who make more than 7.5% of adjusted gross income on your federal income tax return. Covered expenses may also include home modifications, equipment, and transportation.
may also qualify for dependent tax credit A percentage of eligible care costs up to $3,000 for one person and $6,000 for two.
Save even more by using your employer-provided Health Savings Account (HSA) and Flexible Spending Account (FSA) and using that money to pay for medical, dental, and vision-related medical and vision payments There is a possibility. dependence.
To contribute to HSA, you usually need to have a health insurance plan with a high deductible. HSA allows up to $7,750 in contributions for families in 2023. If he is 55 or older, he can contribute an additional $1,000. Donations and earnings are tax-free, and eligible medical expenses can be withdrawn tax-free. His HSA contributions for 2023 can be made until the next April tax deadline.
This is difficult because people in their 80s really don’t know when they will need help and if they do, what help they will need.
Barry Glassman
President, Glassman Wealth Services
You may be able to donate your pre-tax income to the Health FSA and Dependent Care FSA. Health FSA covers eligible medical expenses. The 2023 contribution limit is $3,050. Dependent Care FSA to set aside pre-tax money to cover home or day care costs for dependents, regardless of age, while you’re at work, up to $5,000 per household in 2023 I can.
Talk to your tax professional about whether these accounts and other tax relief will provide financial relief for your caregiving situation.
Find out if your employer offers other caregiving benefits, such as paid time off for caregiving, mental health, and counseling services, remote work, and flexible schedules.
Emotional stress and burnout can increase the financial burden of caregiving. Connecting with other caregivers within a support group may reduce or better manage the multifaceted aspects of caregiving. Search online for caregiver support groups in your area or online.
Care managers may be another avenue to help before a crisis strikes. “We can be their ‘black umbrella’ and stand by them when it starts to rain,” said Anne Sansevero. Aging Life Care Association. “But they have it in their closet and they organize everything.”
Care managers, often social workers or nurses, help develop, evaluate, and monitor plans to help care for loved ones. They can make referrals and provide a list of resources in your area for home care, coming-of-age programs, and other services. Prices range from $125 to $350 per hour, Sansevero said.
Designer 491 | Istock | Getty Images
Finally, an important strategy to save money and reduce the emotional stress of care is to plan early.
CFP Ivory Johnson, founder of Washington, D.C.-based Delancey, said long-term care insurance is a good option for older parents and relatives who are relatively healthy and younger than 70 and can’t afford to pay their own premiums. We recommend that you consider supporting your membership in Wealth Management and CNBC FA Council Member.
Cash flow, family structure and personal preferences all need to be considered when considering long term insurance. And make sure you understand the finer details. “You can either absorb all the risk, transfer all the risk, or do a little bit of both,” says Susan Hirschman, director of wealth management at Schwab Wealth Advisory and the Schwab Center for Financial Research. I can do it,” he said. “There is no one general rule.”
And talk with your older parents about who will make health and financial decisions if you can’t do it yourself. Know where legal documents detailing these wishes are kept, such as medical powers of attorney, powers of attorney, living wills or advance medical directives, and permanent financial powers of attorney.
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