Round-the-clock nursing home care is expensive. State Medicaid funds kick in to cover costs for many patients, but only after individuals have "spent down" their assets.
Cost
For private pay patients, the average annual cost is about $79,935 for a private room, according to the 2009 MetLife Market Survey of Nursing Home. Medicaid funds cover facilities certified by the federal government, according to the Centers for Medicare & Medicaid Services.
Individual Spend Down
The funds pay for care when a nursing home patient's overall monthly income falls below a certain level, for example $2,022 in Alabama, according to the state's Medicaid division. More information may be found from your state's Medicaid office.
Couple Spend Down
When only one member of a married couple enters a nursing home, certain assets are protected. Most states consider a spouse's home and car exempt from the income requirements, according to CMS.
Protecting Assets
Individuals with too much monthly income commonly set up a qualifying income trust, which comes with strict conditions. Many individuals consult an attorney or contact a local Area Agency on Aging for guidelines, according to CMS and state Medicaid divisions (see Resources).
Medicare Payments
While programs cover the majority of nursing home care, the federal Medicare program pays in some cases. A State Health Insurance Assistance Program can provide information on specific cases.
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