Top tips for coping with the cost of caregiving

If you should cope with the cost of caregiving this article is your perfect fit. Here you will find the most useful details. Keep reading to discover all the details!

If you should cope with the cost of caregiving this article is your perfect fit. Here you will find the most useful details. Keep reading to discover all the details!

Caring for aging parents or other loved ones may be one of the most important roles you’ll play, but it can also be a heavy financial burden. Medical bills and the cost of long-term care can be high: A private room in a nursing home can cost several thousand dollars per month. If not covered by Medicare or private insurance, these costs have to be paid out of pocket.

From tax breaks to health care assistance, here are five strategies that could help reduce expenses and ease the stress of caregiving for the elderly—or anyone else who may need help.

Caring for aging parents or other loved ones may be one of the most important roles you’ll play

It’s never too early to talk to family members about what-if scenarios. It’s important to understand how this could affect other aspects of your life, such as your career and your responsibilities to your immediate family. You may also want to start saving early in preparation for any caregiving costs. Consider obtaining power of attorney, too, if a loved one might need you to make decisions on their behalf in the future.

Medicaid, Medicare, discount prescription drug programs, Social Security compassionate allowances, disability assistance, state health care exchanges and other programs can all help cover the costs of caregiving. Eligibility is determined on an individual basis, so do your research to find out what assistance your situation qualifies for.

One of the more popular methods of helping manage care is through a long-term care insurance policy. Standard health insurance policies and Medicare often don’t cover long-term care. Medicaid is required to cover long-term care but will only kick in if you qualify, which may mean you’ve exhausted your other resources. Long-term care insurance is designed to pick up where those policies end. Long-term care insurance covers the cost of assistance with managing basic daily tasks such as getting dressed, eating or bathing.

If the person you are caring for is a qualified tax dependent, you may be eligible for certain tax benefits. (Consult the IRS website to see who qualifies as a dependent.) You might also be able to deduct medical expenses for your dependent up to a certain amount, including modifications made to your home to accommodate medical needs.

If the person you are caring for is a qualified tax dependent, you may be eligible for certain tax benefits.

Finally, if your loved one qualifies as a tax dependent, you may be able to use Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and/or Flexible Spending Accounts (FSAs) to help cover qualified medical, dental and vision expenses. 

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