A brief guide to affording eldercare for aging parents

As an adult, you’ve gotten used to certain things about your parents that your childhood never prepared you for—like your mom’s affinity for pickleball or your dad’s sudden fascination with ancient alien documentaries. But the frailty that comes with aging can be the most difficult change to see in your parents. You might be tempted to ignore the signs of aging in your parents, but it’s likely that they will need some kind of eldercare in the future. According to the U.S. Department of Health and Human Services, someone turning 65 today has a 70% chance of needing some kind of long-term care in the future. No matter how well prepared your parents are, some part of that care will probably fall to you. Here’s how to afford the cost of caring for your elderly parents. What is eldercare? Seniors have varying needs that depend entirely on their health and situation. That means eldercare can mean something different for nearly every family. Your mom and dad’s eldercare might include any of these types of caregiving: Adult day care: This kind of daily program offers care and planned activities during the work week. Adult day care is typically for seniors who either need supervised care or are isolated or lonely; it provides any family members who are caring for an aging parent at home with a needed respite. Five days of adult day care per week costs an average of $24,000 per year. Home health aide: Whether your elderly parent still lives independently or lives with you, a home health aide can help them with daily activities, such as bathing, grooming, dressing, eating, and mobility, as well as monitor their physical and mental health and check vital signs. Forty-four hours per week of in-home care from a home health aide costs an average of $75,500 per year. Assisted-living facility: Moving your parents into assisted living will allow them to continue living independently in a private residence in a larger facility that offers meals and planned activities, but also provides easy access to nursing care and medical professionals on site. While assisted living can be an excellent option, it doesn’t come cheap, costing an average of $64,000 per year. Nursing home: If your parents need consistent medical care or 24-hour supervision, you may choose a nursing home to provide their care. These facilities generally offer three meals a day and assistance with daily activities, as well as rehabilitation services if needed. Medicare generally does not cover nursing home care, and a private room in a nursing home costs an average of $117,000 per year. Paying for eldercare Very few people have the kind of cash laying around to pay out-of-pocket for these kinds of services. And even if your parents planned ahead for their graying years, shelling out anywhere from $2,000 to $10,000 per month can put a dent in even the best-laid retirement plans. Unfortunately, most eldercare is not covered by Medicare, and your family will be stuck paying out-of-pocket for your parents’ care needs. Medicaid does pay for some of this kind of care, but your parents will have to have completely exhausted their assets to qualify for Medicaid. That does not mean you’re stuck choosing between your mom’s care and your groceries, however. Eldercare options There are several options available that could help improve the affordability of your parents’ care, including: Program of All-Inclusive Care for the Elderly (PACE): This government program provides eldercare services to seniors who would otherwise need to receive nursing home care. Seniors who join PACE have a dedicated team of medical professionals who help coordinate their care. PACE is a joint program between Medicare and Medicaid that is only available in 33 states and the District of Columbia. You can find out if it is available in your home state using the PACE Finder site. State Health Insurance Assistance Program (SHIP): This nationally available government program offers one-on-one counseling and assistance with Medicare and Medicaid. It can help you and your parents navigate the options and programs available to you so you can find the least expensive eldercare options. You can find your local SHIP office via their website. Long-term-care (LTC) insurance: If your parents are already retired, long-term care insurance may be a nonstarter, since this kind of insurance policy grows more expensive as you age. The best time to purchase this insurance is typically prior to age 60, as the premiums can become prohibitively expensive with age. Additionally, a negative health diagnosis could mean the insurer denies your LTC coverage. But LTC insurance pays for care in a variety of settings, including home health care, adult day care, and nursing and assisted living facilities. Life insurance: Some life insurance policies offer what’s grimly known as an “accelerated death benefit.” This benefit allows the insured individual to access tax-free cash