How to Plan for the Costs Associated with an Alzheimer's Diagnosis

Receiving a diagnosis of any kind can be stressful, but when it comes to a disease like Alzheimer’s disease, all the considerations you need to think about are overwhelming. Paying for medication and treatment for you or a loved one can prove tricky even if you have health insurance, and thinking about your long-term care can be difficult if you don’t have savings or a significant retirement plan.

Doing some research on how much you might be required to pay out of pocket and what types of treatment are available to you will help reduce the stress involved and give you peace of mind when it comes to your future.

It’s important to look at all your options, so talk to your health insurance representative for an idea of how they can help. Medicare may not pay for everything, but there may be supplemental insurance that will help you with prescriptions and extra coverage. Being knowledgeable about all the costs that you might incur and how to pay for them without going into debt will help you create a good game plan for your or your loved one’s future.

Keep reading for tips on how to plan for the costs associated with an Alzheimer’s diagnosis, presented below by Artesia Christian Home.

Look for Supplemental Insurance

Many health insurance plans won’t pay for everything when it comes to a disease like Alzheimer’s, but there are options out there for seniors who have Medicare. For example, as eHealth Medicare explains, Medicare Advantage plans can offer the same coverage as Medicare, with some plans including benefits for prescriptions, dental, vision, fitness services, caregiver support, and a nursing advice line.

Learn What Medicare Will Pay For

While there will be some out-of-pocket costs, the Alzheimer’s Association points out that Medicare will generally pay for inpatient hospital care, some prescription drugs, up to 100 days of nursing home care, or hospice care for individuals age 65 or older. It’s important to be familiar with exactly what your policy will cover, however, so talk to a representative who can go over your plan with you step by step. Reading the fine print will ensure that you aren’t faced with a nasty surprise down the road.

Tie Up Loose Ends: Help Sell Their Business

If your loved one is no longer able to properly run their business, consider helping them close and sell it. Before selling, make sure to get a professional business valuation so you have an objective perspective on the business's value before it's sold. The valuation should include all your business assets, including all real estate and inventory. If you feel you’re out of your league when it comes to such matters, enlist the help of a professional, like a business consultant, to guide you through the process.

Take Out a Home Equity Loan

If you’re a homeowner with a loved one with Alzheimer’s, a home equity loan can help you pay for medical expenses. Your home equity is the difference between its market value and how much you still owe on the home. So if you’ve paid off $200,000 on a home valued at $400,000, your home equity would be $200,000. Before taking out this type of loan, it’s crucial that you carefully review your finances to make sure you can afford a higher mortgage payment.

Consider Selling Your Home

If you or a loved one are going to need permanent long-term care, you might consider selling your home to help pay for a skilled nursing home or another care facility. Use a home estimate calculator to determine how much you could get for your home. And don’t forget to factor in extra costs you’ll incur in a move, such as hiring a moving company. It’s an added cost but will take some of the burden off of the home selling and moving process at what will be an emotional time for all.

Take a Look at Your Life Insurance Policy

Many life insurance policies will have an option to pay out for long-term care benefits, but every policy is different. Take a look at your details to see how your insurance company can help. According to how much of the long-term care benefit is used, the death benefit will be reduced. A smaller percentage of the death benefit is guaranteed with some policies, despite whether you choose to use all the money for long-term care.

Open a Health Savings Account
 
If you have a high-deductible insurance plan through your employer, you may be eligible to open a health savings account. Some companies will even match your contributions, which is a great program to take advantage of. Your age and the size of your family will determine the number of tax-deductible contributions you can make, but every little bit will help in a health emergency.

Finding a way to pay for long-term care doesn’t have to be stressful or frustrating. Sit down and think about your needs — from possibly selling your business to looking into life insurance — and create a plan for a healthcare budget. With a little preparation, you can get peace of mind and ensure that you and your family members are taken care of.

Artesia Christian Home prides itself on providing top-quality care in a welcoming, compassionate environment. To learn more about our community or to request a tour, please contact us today by calling (562) 865-5218.

by Andrea Needham of eldersday.org