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Resources for Families

How do I pay for Assisted Care at Pillsbury Senior Communities?

Many people assume that Medicare pays for long-term care, but it doesn’t, however there are many options available to cover the cost of living in an Assisted Care community.  We are happy to walk through our application process, and to help you consider different options.

Long-Term Care Insurance Long-term care insurance can help cover the cost of living in an Assisted Care community.  Each long term care policy is different so it’s important to understand what is required to qualify for benefits.  

Life Insurance Policies A program that sells or converts a life insurance policy often helps cover the cost of long-term care.  

Retirement Plans/Pensions Retirement plans and pensions may be set up by employers, insurance companies, the government or other institutions.  They are tax deferred savings vehicles that allow money to accumulate tax free and be used as retirement income.  

Social Security Throughout a worker’s career, the Social Security Administration keeps track of his or her earnings.  The monthly benefit amount the worker is entitled depends upon the earnings record and age the retiree chooses to begin receiving benefits.  

Savings/Annuities/Investments In exchange for a single or series of payments, you can enter into an annuity contract with an insurance company.  The company will send you an annuity, which is a series of regular payments over a specified and defined period of time.  Types of annuities include Immediate and Deferred long-term care.  It’s best to consult with a tax professional before purchasing an annuity.  

Stocks and bonds can be sold to help cover the cost of Assisted Care along with any savings that may be available.  

Veterans Benefits The Aid and Attendance Pension provides benefits for veterans and surviving spouses who require the regular attendance of another person to assist with their activities of daily living (such as eating, bathing, dressing, etc.).  

To qualify, your physician needs to establish that you cannot function completely on your own and need assistance with activities of daily living.  The benefit provides up to $1,740/month to a veteran, $1,094/month to a surviving spouse, or $2,020/month to a couple.  A veteran with an ill spouse is able to receive up to $1,338/month (as of 12/01/11).  

To apply, the proper forms must be filled out Form 21-534 surviving spouse or Form 21-526 Veteran.  A copy of the veteran’s DD-214 or separation papers, physician statement, current medical problems, net worth limitation and net income as well as out-of-pocket medical expenses must accompany the form.  

Tax Deductions HIPAA (The Health Insurance Portability and Accountability Act) enables seniors and their adult children to deduct all or part of the monthly cost of living in a senior living community as a medical expense.  Long-term care services may be tax deductible as an unreimbursed medical expense on Schedule A.

Personal care services such as bathing, dressing, transferring and continence care along with maintenance services such as meal preparation and household cleaning which Assisted Care residents receive qualify as long-term care services.  Residents who would like to use this tax deduction must qualify as “chronically ill”.  This means the resident is unable to perform at least two Activities of Daily Living (such as bathing, dressing or continence) without assistance or who have a severe cognitive impairment and require supervision.  

Details are also available in two IRS documents: Tax Topic 502 (Medical and Dental Expenses) and Publication 502 (Medical and Dental Expenses PDF) or visit www.irs.gov.

He is very content and thinks of Pillsbury as his home. He continues to do well and I contribute that to the warm, loving, attentive care provided by the wonderful staff. I could not be more pleased.” – Pat Gildemesiter and the family of Owen Winkler, North Resident
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