In The Family Costs of Dementia Part One, I went through the national average costs of care for the patient with dementia. In this post, I would like to talk about Insurance, Plans, and Medical Costs for the patient, which will be added to those other care costs mentioned in Part One.
According to the National Institutes of Health (Health care costs for dementia found greater than for any …), the average cost for a patient with dementia was approximately $257,000 compared to those without dementia ($183,000) who incurred costs due to illness or necessity of treatment. Per year, Medicare pays approximately $2,700 to help cover personal medical costs (The Financial Cost of Dementia) on top of any other insurance or residential, in-home or other care that the patient is receiving. It must be noted, as well, that this does not include the out-of-pocket expenses that are incurred by the patient or the families (many of whom find themselves requiring some form of medical treatment due to the stress and impact of the other family member’s diagnosis - High Costs of Long-Term Caring for Alzheimer's Patients ...).
Fortunately, many of these costs can be used as tax deductions, so long as they equal more than 10% of the gross adjusted income for the filer. This includes the care (Tax Deductions & Credits | Caregiver Center). For example, our mother’s nursing care expense, per month, is approximately $3,000. This would equal about $36,000 that can be deducted from her taxes, along with her prescriptions, medical expenses, etc., which helps soften the blow of the costs involved. Luckily, her monthly prescription bill (with Medicare PlanB) comes to approximately $85 per month (or roughly $1,050 per year). Add that to the dental costs (she doesn’t have dental insurance), and this helps greatly with her finances.
Now, there are some insurance companies that have coverage for memory/nursing care, as well, which would help with the financial aspects of care for the patient; however, most people afflicted hadn’t the foresight to buy such insurance.
The Alzheimer’s Organization (Alz.org) has a very good planning page for those who might be facing upcoming expenses or those who are lost with the myriad of expenses they hadn’t considered (Planning for Care Costs | Caregiver Center). This is invaluable information to consider. I do know some people who are beginning to plan and take some matters in hand to ensure they haven’t the morass of red tape and paperwork that comes with a family member being diagnosed and no planning has occurred before.
So, in planning, know what your assets are. Know what your family member’s insurance covers and what insurance they have (believe me, trying to go through papers and figuring out what may be what is utterly exhausting and confusing), then begin the process of using your power-of-attorney to allow you to take proper actions for the welfare and benefit of the patient. The paperwork can pile up very quickly as you being paying the bills that were neglected, ensuring premiums and medical plans are kept up-to-date, and you can keep supplying the patient with regular supplies of necessities and prescriptions while ensuring their care is going well.
Remember, being the primary person for someone with dementia (regardless of where they live) is a full-time job for which there may be little or no compensation. This is another unstated cost.
While it was quite difficult to find information on the per-person expenses, I believe I’ve given a decent indication of what to prepare for.
As I sign off on this post, I will leave you with a story from last July 2015, which gives an indication of what lack of preparation and understanding could create. Just be sure to do your homework and prepare yourself and your loved ones.
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