The cost of memory care can be overwhelming, especially in New York City. It is more expensive than the cost of regular assisted living, which can make you feel more unsure of how to pay for it. Not to worry, though—there are plenty of ways to fund your time in a memory care community.
Does Medicare cover Memory Care?
Medicare is government-funded health insurance for adults 65 and older. Medicare does not cover any of the costs associated with memory care communities. This is because most of the costs of memory care communities are considered living costs rather than healthcare ones, such as room and board, meals, and housekeeping. As a result, Medicare does not cover any of the costs associated with memory care communities.
Does NY Medicaid cover Memory Care?
Medicaid is a state-run program that provides financial aid to cover healthcare costs for low-income individuals. In New York, Medicaid may help cover some of the costs of memory care. The costs that are covered are strictly medical ones, so room and board and other living costs cannot be covered.
Also important to keep in mind is that only certain facilities can accept Medicaid, of which there are few in New York City. Because Medicaid is limited in what it can cover, it is important to plan financially how you’re going to fund your memory care experience.
How Can I Pay for Memory Care?
Knowing that Medicare and Medicaid can only help so much in paying for memory care, you might be even more overwhelmed and unsure of how to pay for it. But there are plenty of sources from which you can fund your time, such as the following:
Savings, 401K, Pensions and Annuities
The first source of finances you can pull from is your savings. You may also have a 401K or a pension from your employer you can take advantage of.
An annuity can help cover costs as well. Consider setting up a fixed annuity that pays you a regular sum of money when you need it. Although you need to be 59-½ years old to withdraw money from your annuity without getting a penalty, it can be a steady source of income when you begin memory care.
If you are a veteran or a spouse or widow/widower of a veteran, you might be eligible to receive Veterans Aid and Attendance or Housebound benefits. These provide you with monthly payments up to $2,200 to help pay for long-term care.
Long-Term Care Insurance
Long-term care insurance is meant to help cover the cost of long-term care services, including memory care. The services covered by these policies are not covered by regular health insurance. Remember that it is best to purchase insurance before you need memory care, not right when you do need it. If you are thinking about waiting it out and moving to a memory care facility later, consider buying a long-term care insurance policy now.
You may be able to sell your life insurance policy in a process called life settlement. This entails selling your policy to someone else who pays you monthly premiums and then collects the benefit after you pass away. You can put the money you receive towards your memory care expenses.
Of course, this might not be the ideal if you plan on leaving money for your family when you pass. Talk to your attorney and your insurance agent to see if this option is right for you.
Rental Income from your Property
If you own property, consider renting it out to earn some extra income. This offers a regular source of money that can help cover some of the memory care costs.
Esplanade of Woodmere
The cost of memory care can be stressful, but memory care staff are committed to serving your loved one with the highest quality of care. Esplanade of Woodmere is one of such communities. Esplanade of Woodmere is a memory care community located at 130 Irving Place Woodmere, NY 11598. It is unique in its personalized attention to its residents, firmly rooted in the belief that listening to seniors’ needs is key to helping them live a fulfilling life. With its spacious suites and welcoming environment, the Esplanade strives to make its residents feel safe and at home.
Memory care comes with a hefty price tag, but paying for it is still within your reach. If you are ready to start looking into memory care, but need some financial guidance, contact me, Teres Rodney at TRodney@youroasisadvisor.com. I can help you explore memory care options in NYC within your budget, and refer you to helpful resources and people who can help plan for your future financially. As an Oasis senior advisor, it is my job to make the process of finding memory care as easy as possible for you.