Many Americans significantly underestimate the impact that a loved one’s long term care needs could have on their own lives, marriages, work, and not to mention their finances. As a matter of fact, 57% of caregivers surveyed tapped their retirement funds to care for a loved one, compared to 34% that expected to do so.1
If you are currently providing care for a loved one or plan to do so in the future, being aware of all of the financial realities can help save you time and money. Here are three of the most common misconceptions surrounding the costs of caregiving:
- All home assistance will be covered by insurance. It’s easy to assume that health insurance or Medicare will pay for these costs. However, it is helpful to understand the difference between home care from home health Medicare does not cover non-medical care; therefore, assistance for non-medical care provided in a home is not covered. On the other hand, home health care when considered medically necessary, can be covered by Medicare and other health insurance policies.2
- It won’t affect my finances. Caring for a loved one is not only physically demanding, but financially as well. Oftentimes, caregivers are missing days from work, working less hours, passing up promotions, and even quitting or losing their jobs. And if you’re caring for them within your own home, consider the possible increase in your utility bills, groceries, and home maintenance and improvements.
- It won’t affect my mental and physical health. The cost of caregiving is not just financial but can be mentally and physically demanding. Because many who require long term care are physically disabled, it imposes limitations on daily activities. Therefore, caregivers often perform physically-demanding tasks such as helping loved ones get in and out of bed, helping them eat, pushing their wheelchair up ramps, and more. All of the demands can lead to increased stress, exhaustion, and health problems for yourself.
Caregiving for our loved ones can be rewarding, but it can be difficult and costly. However, with the proper tools and planning, families can mitigate caregiving costs. Reach out to us and let us help you address these concerns along with any others that you may have.
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