Paying for Long
Term Care
mortgage was created to help retirees with
limited income use the accumulated wealth
in their homes to cover basic living expenses
and pay for health care. Funds from a reverse
mortgage can be used for any purpose. The loan
is called a reverse mortgage because instead
of making monthly payments to a lender, as
with a traditional mortgage, the lender makes
payments to the borrower. The borrower is not
required to pay back the loan until the home
is sold or otherwise vacated. The borrower is
not required to make any monthly payments
towards the loan balance as long as they occupy
the home. The borrower remains responsible
for property taxes, homeowner’s insurance and
homeowners association dues (if applicable).
Giving a reverse mortgage on a home is often
a tempting prospect for seniors struggling to
pay for care. Though the funds from a reverse
mortgage can be used for any purpose,
including long-term care, one should exercise
caution before pursuing a reverse mortgage
as it is, after all, a loan and will have to be paid
back at some point.
Veterans
The U.S. Department of Veterans Affairs
(VA) may provide long-term care or at-home
care for some veterans and/or their spouses. All
Veterans enrolled in the VA’s health care system
are eligible for home and community based
long-term care services. A series of clinical
indicators and conditions help VA staff identify
the need for these services. Specific eligibility
and admission criteria are unique to each type
of care. Under the Millennium Act of 1999, VA
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must pay for nursing home care for veterans
who require nursing home care and meet the
following criteria:
• A Veteran who has a service-connected
disability rating of 70 percent or more
• A Veteran who needs nursing home care for
a service connected disability
• A Veteran who is rated 60 percent serviceconnected
and is either unemployable or
has an official rating of “permanent and total
disabled”
• Non-service connected Veterans and those
officially referred to as “zero percent, noncompensable,
service-connected”
• Veterans who require nursing home care for
any non-service connected disability and who
meet income and asset criteria are eligible for
VA CLC care on a resource available basis
Several benefit/compensations programs
are administered by the VA, but one of the
most popular benefits used for long-term
care services is the Aid and Attendance and
Housebound increased monthly pension. Aid
and Attendance provides funds for care at
home, in assisted living, independent living,
or a nursing home to veterans who require
assistance with activities of daily living (bathing,
toileting, dressing, etc.), are bedridden, residing
in a nursing home due to physical or mental
incapacity, are blind, or permanently and
substantially confined to home due to a
disability. Applying for benefits can be lengthy
and confusing, so it is best to seek assistance
from a Veterans Service Office or an accredited
VA attorney.
More on Paying for Long Term Care:
• Learn the Legal and Financial Issues of LTC
• Is a Reverse Mortgage Right for You?
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