How to Pay for Home Care in New Jersey
When a chronic illness, recovery from surgery, dementia, or even the natural aging process makes it challenging for a senior to live independently, in-home care can provide the support they need to safely age in place. However, one of the biggest concerns families face is how to manage the cost of home care services and what payment options are available.
In New Jersey, families have several payment options to cover the cost of in-home care. The key to finding the right financial solution begins with understanding the type of care your loved one requires. Medically necessary home health care, provided by licensed professionals like nurses and therapists, is typically the most expensive. For those in need of skilled care, payment may come from a combination of sources including Medicare, Medicaid, veterans benefits, or long-term care insurance. On the other hand, non-medical home care—offering help with daily tasks and companionship—is generally paid out of pocket.
To determine the best payment plan, a thorough needs assessment is usually conducted to assess the level of care your loved one requires. This ensures you’re equipped to make informed decisions about the care they need and how to afford it. At AmoryCare, we help families in New Jersey navigate these options to find the right care solutions for their loved ones.
How Much Do Home Care Services Cost in New Jersey?
The cost of home care services can vary significantly based on location and the level of care needed. For instance, the national median cost of personal care services provided by a home health aide is $33 per hour, according to Genworth’s latest Cost of Care Survey. In New Jersey, the cost for nonmedical services, like homemaker assistance, averages around $30 per hour.
What Insurance Covers In-Home Care?
Medicare In-Home Care Benefits
Medicare, the federal health insurance program, is available to individuals age 65 or older, younger people with specific disabilities, and those with end-stage renal disease or ALS. Medicare will cover medically necessary in-home care services when ordered by a doctor, but only if the care is provided by a Medicare-certified home health agency.
However, seniors needing nonmedical care, such as help with bathing, meal preparation, or light housekeeping, typically don’t qualify for Medicare coverage. If your loved one is part of a Medicare Advantage plan, they may need to use home health agencies that are within their plan’s network.
Another option in New Jersey for eligible seniors is the Program of All-Inclusive Care for the Elderly (PACE), which offers comprehensive services, including home care, to seniors who qualify for both Medicare and Medicaid. PACE helps seniors remain in their communities instead of moving to a nursing home, with a team of healthcare professionals coordinating care.
Medigap Coverage for Home Care Services
Medigap, also known as Medicare supplemental insurance, works alongside original Medicare to cover costs that aren’t fully paid, such as copays and deductibles. Medigap can help with short-term, medically necessary in-home care, but it does not cover long-term care services. If a senior doesn’t meet Medicare’s eligibility requirements for home care, Medigap plans won’t reduce out-of-pocket expenses.
Private Health Insurance and Home Care
Most private health insurance plans do not cover nonmedical home care services, and in-home skilled care is rarely covered at 100%. It's essential to check with your loved one’s insurance provider to understand what care may be covered.
Long-Term Care Insurance for Home Care Services
Long-term care insurance can help cover the costs of in-home care, along with assisted living and nursing home care. Coverage varies by policy, so it’s crucial to review your plan to see what services are included. Some policies may cover nonmedical services, like assistance with personal care and housekeeping. It’s best to purchase long-term care insurance when you’re healthy—premiums are generally lower for those in their 50s or 60s.
Using Life Insurance to Pay for Home Care
Life insurance policies can be used to help cover home care costs in New Jersey. Seniors may choose to take out a loan against the cash value of their policy, or they may opt for an accelerated death benefit rider, which allows them to receive a portion of the death benefit while still alive. Some life insurance policies also offer life settlements, where the policy is sold to a third party in exchange for a lump sum that can be used for care.
Veterans Benefits for Home Care Services
Veterans and their surviving spouses may be eligible for benefits that help cover home care costs. The Veterans Health Administration offers programs such as Skilled Home Health Care Services and Home-Based Primary Care, providing at-home care as an alternative to nursing homes.
Veterans with higher care needs may qualify for improved pensions, which offer additional monetary support to cover the costs of home care. To qualify, veterans must meet service and income requirements, and their care needs must align with specific pension categories like aid & attendance or housebound.
By understanding how to navigate the options available for covering home care costs, you can ensure that your loved one receives the support they need to remain safely in their own home. In New Jersey, options like Medicare, Medicaid, and long-term care insurance provide various solutions, but it's important to assess each plan’s coverage based on your loved one’s specific needs. For more information on home care services, speak with an AmoryCare advisor who can help guide you through the process and find the best solutions in your area.
Paying for Private Home Care: Options for Families in New Jersey
Many families in New Jersey pay out-of-pocket for in-home care services. If you're considering private pay for home care, there are several options available to cover these costs. These may include using funds from individual retirement accounts (IRAs), health savings accounts (HSAs), pensions, annuities, real estate, investments, and Social Security benefits.
While it can be difficult for seniors to part with hard-earned savings or liquidate assets, it’s important to recognize that most aging loved ones will eventually need Medicaid if their savings run out. Long-term care costs will only continue to rise, and without substantial savings, seniors may need to rely on Medicaid when their funds are exhausted. Planning for this possibility is crucial for managing long-term care costs effectively.
Using a Reverse Mortgage to Pay for Home Care in New Jersey
For homeowners in New Jersey with significant equity in their homes, a reverse mortgage loan can provide cash by borrowing against the home’s value. These funds can be used for various purposes, including paying for home care, modifying the home for aging in place, or even purchasing long-term care insurance. A reverse mortgage loan must be repaid when the borrower sells the home, moves, or passes away.
Public Home Care Assistance Programs in New Jersey
In-home Care Assistance through Medicaid
Medicaid is a joint federal and state program providing healthcare coverage for low-income seniors with limited assets. In New Jersey, Medicaid can help cover home health care services, including personal care and health services, though eligibility requirements vary by state. New Jersey also offers Medicaid waivers like Home and Community-Based Services (HCBS) to help cover non-medical home care services and support family caregivers through programs like "Cash and Counseling."
Supportive Services through the Older Americans Act (OAA)
The Older Americans Act (OAA) funds a variety of home and community-based services for seniors in New Jersey. These services, which are available through local Area Agencies on Aging (AAAs), can help supplement the cost of home care. Contact your local AAA to learn about the services offered in your community.
Affordable Home Care in New Jersey: Finding the Right Plan
For many families, finding affordable home care solutions is a priority. At AmoryCare, our Care Advisors can connect you with local carers that meet your loved one’s needs and budget. In addition to professional care services, you can also explore community-based resources that may reduce costs.
For example, free respite care is often available through community organizations and Medicaid in some states, allowing family caregivers a much-needed break and reducing the need for paid caregiving services. Meal programs like Meals on Wheels offer free meals to seniors struggling with meal preparation, ensuring they stay healthy at home while freeing up funds for other needs. Adult day centers provide social activities and care for seniors, offering an affordable option with services such as meals and supervision. Medicaid may cover some of the costs for adult day centers in New Jersey.
Planning for Home Care Costs: What Families in New Jersey Need to Know
Planning ahead for the costs of in-home care is key to ensuring your loved one gets the support they need. Elder law attorneys can help families navigate estate planning, Social Security benefits, Medicaid applications, and more. They also provide referrals to financial advisors and geriatric care managers, helping you make informed decisions about long-term care planning.
For those looking into Medicare or Medicaid options, Medicare brokers and State Health Insurance Assistance Program (SHIP) counselors can offer guidance in choosing the right plans. Geriatric care managers, typically social workers or licensed nurses, can help with care planning and coordination of services.
At AmoryCare, we understand that navigating home care options can be overwhelming. Our Care Advisors are here to simplify the process, helping you find the best care plan for your loved one’s unique needs in New Jersey. Contact us today for guidance and support.
