Guest post by Lydia Chan of alzheimerscaregiver.net
Upon receiving a diagnosis of Alzheimer's, it is common to experience a sense of being inundated by change, fear, and uncertainty. Although there may be a feeling of relief in gaining insight into the recent feelings of disorientation, this is quickly eclipsed by the daunting prospect of dealing with the ongoing effects of the disease. The road ahead with Alzheimer's will require careful consideration and preparation, with healthcare rightfully taking precedence on your list of priorities.
Here are answers to key questions about Alzheimer’s disease healthcare costs.
What will Medicare actually cover?
Given that the majority of individuals diagnosed with cognitive disorders such as Alzheimer's or dementia are typically aged 65 and above, it is crucial to understand the extent of coverage provided by Medicare. For instance, Medicare solely covers hospice care if a physician confirms that the patient is in the final stages of life. However, hospice care encompasses more than end-of-life support. Often referred to as comfort care, hospice can effectively address chronic pain in individuals with Alzheimer's. In cases where Medicare does not offer coverage, exploring Medicare Advantage plans is advisable. These plans deliver the same benefits as Medicare Parts A and B, along with additional perks like prescription coverage, dental care, vision care, fitness services, and caregiver assistance.
How can I cover out-of-pocket expenses?
If you are facing costs and fees for Alzheimer’s treatment and care, you may need to cover them yourself. One option to consider is selling your home and downsizing to help finance in-home care or a move to an assisted living facility. Additionally, if you have assets like dividends from investments or unused properties that can be sold, setting aside those resources now for future long-term care needs can potentially save you time and money later on.
Being financially savvy can help you avoid compromising the quality of care due to costs. For instance, you could sell a life insurance policy for a cash payout, enabling you to cover expenses such as caregivers, medical equipment, or home modifications not included in your insurance coverage.
It's also important to think about the financial well-being of your loved ones in the future. While contemplating your funeral may be challenging, the average cost ranges from $7,000 to $10,000. This expense could pose a significant burden on your family, but purchasing burial insurance can help cover funeral costs, outstanding medical bills, and debts, relieving your loved ones of this financial responsibility.
How do I find good and affordable care?
You have a lot of options when it comes to finding care to help you manage your Alzheimer’s. There may be a family member who is willing to take on the role of caregiver, which is a very rewarding but also very stressful endeavor. This may be the most affordable option, but you should suggest some training for your companion, such as CPR, managing the difficult behaviors associated with Alzheimer’s and understanding the body’s aging process.
You can also hire a professional caregiver, a nurse or nursing assistant with experience working with cognitive impairments. You’ll want to interview candidates, check references and make sure this person is a good fit professionally and personally. There can be some unexpected costs here, such as food, mileage reimbursement and paid time off.
A third option is to tour assisted living facilities to find one that has a good reputation for Alzheimer’s care. When it comes to looking at a facility, often the most expensive option, you’ll need to find a balance between comfort and affordability. Typically, however, when moving into a center or a home, you have a house or other property you can sell to offset the annual and monthly costs.
Even in the early stages of Alzheimer’s disease, memory loss and confusion can make decisions about care difficult. All of these changes can add more stress, making your illness harder to manage. Stay calm and remember that you are not alone. About 5.5 million people in the United States have been diagnosed with Alzheimer’s and more than 5 million of those are over the age of 65. These decisions and changes are hard, but not impossible. Planning and preparing now— with loved ones if you can— is your best bet for a comfortable future.
Final Thought.
If you are looking for advice in preparing for all stages of retirement, the Peak Wealth Planning team can assist.
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About the Author
Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind.
Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance, and estate planning guidance. Peak Wealth Planning is a fee-based financial advisor based in Chicago, Illinois, and Colorado.
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