Being a senior loved one’s caregiver can be rewarding, but it also has challenges. Caregiving can become overwhelming and lead to burnout, which is why respite care services can be helpful to both the caregiver and the senior loved one. It can alleviate some of the strain of daily caregiving by temporarily placing caregiving duties in someone else’s hands so the family caregiver can get a much-needed break to recharge or take care of personal business. Even though it can be a great help, some may wonder who pays for respite care, and the answer varies. Often, as with many other senior care services, seniors or their families cover the costs. If the senior qualifies, public services and programs can help pay for respite care. Here, we’ll go over the cost of respite care and ways to pay for it, from using private funds to local programs and public services.
What is respite care?
Respite care is a type of care that helps caregivers. Full-time caregiving can be physically and emotionally taxing, especially when caring for a parent, spouse, or relative. The caregiver may have an emotional connection to the person they are caring for, and seeing a loved one’s health change firsthand is difficult. The additional responsibility of managing the loved one’s daily life and health care needs can be overwhelming, especially considering that the caregiver has their own life and health to manage. This is where respite care is helpful. A caregiver provides much-needed relief for the family member who typically cares for the senior by taking over caregiving duties for short periods.
Respite care affords the caregiver a break to run errands, pick up children, or even simply relax. The caregiver can also use this type of care if they feel burnt out, are leaving town for several days or weeks, are recovering from an injury, or are temporarily unavailable.
Family caregivers can access respite care services in several styles and settings. For example, a caregiver can come to the senior’s home to provide home care or home health care services. Adult day care programs also offer respite to family caregivers. In this setting, the senior goes to the day program, where they’ll typically have access to activities, meals, and assistance. Some adult day care programs provide transportation to and from the building so the caregiver does not need to drop off or pick up their loved one. If a caregiver needs an extended break, assisted living, nursing homes, and rehabilitation centers usually offer short-term respite care services.
How much does respite care cost?
The cost of respite care depends on a number of factors, including your geographic location and the setting where the respite care is provided (at home or in a facility). The national median cost of home care providers is over $30 per hour, with evenings and weekends potentially costing more. Respite care providers in other settings may charge per day: Adult day care programs may cost about $95 per day, and respite care in long-term care facilities may be over $200 per day.
Remember that where you live influences the average rate, so care in your location could cost less or more than the average.
How to pay for respite care
Family caregivers and their senior loved ones may consider the costs of respite care and wonder how to cover them. While the first option is to pay out of pocket with private funds, several other options are available. Let’s take a look at some of the ways to pay for respite care.
Paying for respite care with private funds
Some people pay for respite care using private funds, including the senior’s Social Security income, retirement savings, investment accounts, and other savings.
Paying out of pocket for respite care can be a challenge because the costs add up quickly. Families can strategically choose the hours they’ll use these services to manage the costs. The best use of respite care looks different for every family. Hiring a respite caregiver for weekend hours could give one family caregiver their weekends back. For others, weeknights might be the ideal time for respite care services so the family caregiver can keep the household moving through the work and school week.
Remember that respite care providers are flexible. Clients can usually add or cut back hours with the appropriate notice. Finding the right schedule the family can afford may take time, but it is possible — and worthwhile to try.
Using long-term care insurance to pay for respite care
Long-term care insurance (LTCi) is a type of insurance policy that helps cover long-term care costs that health insurance policies typically do not cover. Medical insurance, like traditional Medicare, covers the cost of various medical services — “medical” being the key word. Services that help people with activities of daily living, like bathing, dressing, and grooming, for example, are not considered medical services. Medicare calls these services custodial or personal care and does not cover them. Respite care could be considered custodial or personal care, so typical health insurance doesn’t cover the costs. This is where long-term care insurance comes in.
Seniors with long-term care insurance may be able to use their policy to cover the costs of hiring respite care. Several factors determine if the senior can use their LTCi policy to pay for respite services, such as whether the policyholder meets the health criteria to file a claim on the policy and whether the policy limits the number of respite care hours it will cover.
Long-term care insurance is a valuable financial tool that can help pay for many kinds of senior care. If your senior loved one has a policy, it’s a good idea to review the policy’s terms to learn if and how it can help cover respite care. You can contact the insurance carrier or work with a third-party company to review the policy to determine if and how it can be used.
Using VA benefits to pay for respite care
The U.S. Department of Veterans Affairs (VA) has service and financial benefits programs that can help Veterans access long-term care services.
Aid and Attendance is a VA benefit available to Veterans and surviving spouses with significant care needs who meet financial, health, and military service criteria. It provides additional monthly income to eligible individuals, which can help fund respite care services.
VA also offers home care services to Veterans who do not live in long-term care facilities but need senior care services. These services include adult day health care, respite care, and others.
Because VA knows that caring for a senior Veteran has unique challenges, it also offers services for caregivers of Veterans. One of the main programs, the Program of Comprehensive Assistance for Family Caregivers, offers respite care services.
Does Medicaid pay for respite care?
If a senior is a Medicaid beneficiary, they may be eligible to receive in-home respite care paid for by Medicaid. Some older adults who receive Medicaid benefits and need long-term care services but want to receive them at home instead of in a nursing home can apply for a home- and community-based services Medicaid waiver. Participating in this program gives them access to the care they need while living at home. Several services offer respite care for the caregiver.
Keep in mind that each state operates its own Medicaid programs. Though most states offer respite care coverage through Medicaid waivers, the services available may vary or be unavailable in your state. Some programs limit the amount of time they will cover services, the settings, and the type of respite care that is covered.
Medicaid beneficiaries should contact their state’s Medicaid office to learn if and how the respite care they’re looking for is covered.
Does Medicare pay for respite care?
Medicare doesn’t pay for respite care services in most cases. Because Medicare covers medical services and respite care is considered personal or custodial care, people must find alternate means to pay for it.
One exception in which Medicare may cover some respite care costs is if the senior already receives Medicare’s hospice benefit. In this case, respite care may be provided in a Medicare-approved facility, such as a skilled nursing facility or nursing home, for up to five days. The senior would be responsible for a copay, but Medicare covers most of the cost for this inpatient respite care.
Bottom line
If you are caring for a loved one, respite care is there to alleviate you so you can take care of yourself. Whether you’re leaving town, recovering from an injury, or simply feeling burnt out, respite care is a great option. You can utilize several methods to help pay for respite care services, including personal funds, long-term care insurance, VA benefits, Medicaid, and, in some cases, Medicare. After all, you deserve the time to relax and reset after lovingly taking on the responsibility of being a senior caregiver.
