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home cost for so long as you receive skilled care. You
or your spouse may have a union or company plan that
provides some coverage, but this is rare.
What if I Need Only Assisted Living
or Home Care?
None of the sources listed above will cover the cost of
assisted living or home care. Services of nurses provided
by a hospice or a home health company are covered by
Medicare. Twenty-four-hour home care or assisted living
is not covered.
Long-Term Care Insurance
Long-term care insurance may provide peace of mind
that you will be cared for when you can no longer care for
yourself. You should speak to several insurance companies
to learn more about available options. Policies may cover
one or a combination of nursing home, assisted living,
or home care. You must choose the length of coverage,
which may be unlimited or limited to a number of
years or a cap on the amount of money expended by the
insurance company. Another option increases annually
the amount paid per day or per month. Before purchasing
a long-term care policy, you should ask what you must
do to receive payments and how long it takes. When
purchasing a policy you should consider all these issues as
well as your ability to pay. Your goal should be to acquire
a policy that will pay at least the difference between your
income and the cost of your long-term care. If you have
further questions contact SARCOA’s SHIP contractor at
334-671-3990.
What If I Have Long-term Care
Insurance?
If you will soon need assisted living, nursing home, or
paid home care, you or a family member should read
your policy carefully to determine the coverage provided.
If you have an older policy, be certain it does not require
an inpatient hospital stay before it begins to cover your
long-term care. Notify your insurance company as soon
as possible when you need care.
VA Benefits
Veterans and their widows or widowers who have
significant expenses for assisted living, nursing home,
or home care are usually eligible for VA benefits if the
veteran served during an official “war time” period.
To qualify for VA Aid and Attendance, housebound, or
pension, total assets excluding the home must be less
than $129,094 (2020).
VA rules now penalize veterans who have transferred
assets to come below the asset limits by looking back
to 10/18/2019 and dividing by $2267 to determine the
number of month, not to exceed 36 months. “Aid and
Attendance” is not available to spouses of living veterans
in need of long-term care, but a veteran who is over 65
may qualify for a VA pension amount at a lower monthly
amount if his or her spouse has enough medical and care
costs.
The VA determines the benefit by first subtracting
medical and long-term care expenses (if they exceed 5%
of income) from the total income of the veteran and
his or her spouse to determine countable income. If the
veteran or widow needs nursing home care or aid and
attendance at home or in assisted living, the countable
income is then subtracted from the current (2020)
maximum monthly aid and attendance benefit rates for
a single veteran ($1911), married veteran ($2267) or a
veteran’s widow or widower ($1228). If the veteran does
not himself or herself need aid and attendance care, the
countable income is subtracted from the current (2020)
maximum monthly pension benefits rate for a single
veteran ($1146), married veteran ($1500), or veteran’s
widow ($767). Benefits will be higher by $196 (2020) if
the veteran has more than one dependent. If you qualify
for nursing home Medicaid and are not married and have
no dependents, the benefit check will be reduced to $90
per month.
If you believe you may be eligible for VA benefits, contact
the local office of the Alabama Department of Veterans
Affairs.
Medicaid
If your retirement income plus any VA benefits, health
insurance, and long-term care insurance falls short of
paying for your nursing home and other expenses, you
should determine whether you qualify for Medicaid.
In Alabama, an unmarried person is allowed one vehicle,
a general exclusion of $2,000, a burial exclusion of
$5,000, and prepaid space items such as casket, vault,
plot, and the opening and closing of the grave. In lieu
of the burial exclusion, an irrevocable prepaid burial
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