Don't Outlive Your Money

Almost 15 years ago, I worked briefly at a fancy, private-pay nursing home in Harker Heights, Texas. (I'm not going to mention any names, but at that time, all the nursing homes in that part of Texas were owned by one company.) Beautifully decorated, the facility was designed to attract retired doctors, lawyers and other professionals.

One of the residents was a lady who seemed to be in fairly good health. She did not require very much nursing care or supervision. She didn't have dementia. She only had to take one pill per day. To be perfectly honest, I did not think she was sick enough to require living in in a nursing home. She would have been a good candidate for a less expensive apartment for senior citizens.

The lady was a widow. She sold her home for about $75,000 and intended to live on the proceeds for the rest of her life. She decided that she wanted to live at the fancy, private-pay nursing home. She moved in and paid several thousand dollars per month to live there.

While I was working there, the lady was discharged. She lived at the fancy, private-pay nursing home for two years. She had used her entire life savings to pay for her stay there. Once she ran out of money, the fancy, private-pay nursing home did not want her any more. Why? Because the fancy, private-pay nursing home did not accept Medicaid. The lady was transferred to a less desirable, older facility that accepted Medicaid.

I was shocked. I considered $75,000 to be a lot of money. Since she had paid her life savings to the fancy, private-pay nursing home, I thought she should be allowed there for the rest of her life.

But that is not how it works.  Some nursing homes and assisted livings have only a few beds for residents receiving Medicaid. If you outlive your money, many private-pay facilities will discharge you. You'll be sent to a facility that accepts Medicaid. That way, the fancy, private-pay facility can rent your room to someone who has more money than you do.

That is why it is so important for you to make wise decisions when looking for a place for your elderly loved one. Just because a place is ritzy or expensive does not mean it's the best place. 
Last year I went on a job interview at a luxurious assisted living located near Tacoma's Narrows Bridge. Wealthy senior citizens pay thousands of dollars each month to live there. The woman who interviewed me told me that she  had only one nurse for 110 residents. The corporation cut its nursing costs to pay for chandeliers and salad bars. But what kind of nursing care can one nurse provide to 110 residents?

Most people do not know how long their stay at a nursing home or assisted living will be. Your loved one might live there for a few months or for a few years. I once took care of an elderly woman who lived in a nursing home for 17 years before she died.

Consider all your options. Then decide what is right for you and your budget.