Otterbein SeniorLife Neighborhood Long-Term Care: Is It Affordable?

Posted on: June 5, 2024

Otterbein SeniorLife Neighborhoods offer long-term care in small houses with a maximum of 12 elders (residents). The person-centered approach in our small houses shifts the focus from institutional care, which you commonly see in traditional nursing homes, to individual elder interests, preferences, and needs. 

Elders enjoy a real-home environment in the small houses with private suites and a communal kitchen and living room. There aren’t set schedules as elders are encouraged to follow their own routine by choosing when to get up in the morning, what activities to participate in, and when to eat meals and snacks. In fact, elders work together to plan family-style menus and activity programming. And a dedicated team provides 24-hour care, meeting the needs of each elder. 

This innovative approach is often an appealing option for families seeking exceptional care for a loved one — but is it affordable? In this blog, we explore the costs and payment options for small house long-term care.

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Is Long-Term Care Affordable in a Small House Neighborhood?

Once you’ve decided that long-term care is the best option for your loved one, it’s helpful to talk to the staff about cost and payment options. Fees will vary based on location and the level of care and services your loved one requires but can be over $10,000 a month. It’s important to ask questions and consult a financial planner or insurance agent when necessary, so you know what to expect with your monthly costs. 

Here are four common financial options for long-term care:   

1. Long-Term Care Insurance

Long-term care insurance can assist in covering part of the costs of your stay. This is an insurance plan you’ll need to secure earlier because rates increase as you get older. Likewise, individuals with certain health conditions may not qualify.

Each long-term care policy has varying rules and eligibility requirements, so you’ll want to speak directly with the community and your insurance agent to understand what costs will be covered, and for how long. 

2. Medicare

Medicare Part A, also known as hospital insurance, may cover up to 100 days of skilled nursing care following a hospital stay for surgery or illness. However, Medicare coverage won’t apply to long-term care without a hospital stay and a qualified need for skilled nursing or rehabilitation services.  

3. Medicaid

Unlike Medicare, Medicaid does pay for custodial care that you’d commonly receive in a long-term care setting like our small houses. However, you must meet limited income and asset requirements, and these eligibility rules vary from state to state. View your state’s eligibility and enrollment process here.

4. Other Financial Options

To help offset the cost of long-term care, it’s beneficial to explore additional financing options:

  • Veterans Benefits — If your loved one or his/her spouse served in the U.S. military, they might be eligible for long-term care benefits through the Veterans Affairs (VA) Aid and Attendance benefit. You can check the eligibility requirements here and learn about the VA Survivors Pension here

  • Health Savings Accounts — If your loved one has a health savings account, they may be able to withdraw money from the account to pay for long-term care. As long as you’re using the funds toward a qualified medical expense, withdrawals are both tax- and penalty-free. 

  • Pensions and Social Security — Depending on your loved one’s needs and the amount, pensions and Social Security funds can also be a source of income for long-term care costs.

Interested in Otterbein SeniorLife Neighborhoods?

Are you interested in getting more information about our small house neighborhoods? Otterbein SeniorLife offers a unique approach to long-term care services. Our small house neighborhoods are located in nine residential areas across central and western Ohio.

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