You Have a Limited Budget for Helping Your Elderly Parents: What to Prioritize
Caring for senior loved ones may be one of the most important roles for adult children. However, it can also come with various challenges, especially when there are increasing medical needs with limited finances to care for them. Without planning ahead of time, caregivers may make harsh decisions that absorb the cost of caregiving, which may have long-term consequences. So what should adult children prioritize when they have a limited budget for helping their elderly parents?
Most seniors spend money on medication, especially when not covered by Medicare or private insurance. The costs will have to be paid from pocket, which can be costly in the long run. Here is a guide to help you understand the caregiving elements to prioritize when taking care of a senior loved one on a limited budget with increasing medical needs.
1. Consider Long-Term Care Insurance
One of the primary considerations to save money when taking care of a senior is to sign them up for a long-term insurance policy because Medicare and the standard health policy do not cover long-term medical care. Seniors will have to qualify for Medicaid to be able to use it. But this may mean that they've exhausted all their resources.
With long-term insurance coverage, seniors can benefit from medical care where the other policies end. Long-term care policy covers the cost of managing basic daily tasks and assistance in getting dressed, bathing, or eating.
2. Consider Tax-Advantaged Health Savings
A senior loved one who qualifies for a tax dependent may use Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and/or Health Reimbursement Accounts (HRAs). These accounts cover vision, dental and qualified medical expenses. The adult child taking care of the senior can channel a portion of their pre-tax income into a Health FSA. This can help cater to the healthcare expenses incurred by the senior.
It is also important to learn about tax-advantaged health savings accounts. Remember that they have different requirements, pros, and cons depending on the senior's situation. For this reason, the adult child can consult a tax professional for proper guidance and make informed decisions.
3. Research Financial Assistance Options
Various programs can help cover the costs of caregiving. This includes Social Security compassionate allowances, Medicaid, Medicare, disability assistance, state health care exchanges, and discount prescription drug programs, among other essential programs. Eligibility differs per program, so it is important to research intensively and understand the best option based on the senior's healthcare needs.
Adult children taking care of their senior loved ones can check their state's healthcare program websites or the healthcare government websites. In most cases, adult children should be able to schedule appointments with the state health care assistance officers for an effective guide to enable them to establish the eligibility of their senior loved ones.
Budgeting for Seniors is an Investment for Their Future
It can be difficult to know what to prioritize when you have a limited budget for helping your elderly parents. However, you can always take the necessary steps to save money while safeguarding your senior loved ones' needs.
Are you looking for in-home care for your senior loved ones? Senior Helpers St. Petersburg can help. We offer a wide range of services for seniors in St. Petersburg, Gulfport, South Pasadena, St. Pete Beach, and Treasure Island, and we will be glad to offer quality services to your loved one. Contact us to speak to our professional caregivers.