Paying for Care

The type and level of care depends on the needs of the individual and the payor of services. Some individuals are covered by Medicare, Medicaid, or both. Some have private insurance coverage, and some pay out-of-pocket for care.

SHIP: Navigating coverage for care can feel overwhelming for caregivers. The Senior Health Insurance Program (SHIP) offers free, independent benefits counseling to Medicare beneficiaries and their caregivers. To contact SHIP, call (800) 252-8966; 711 (TRS) or email AGING.SHIP@illinois.gov.

Medicare: Medicare is a national health insurance program for people age 65 or older, have permanent kidney failure, or receive Disability benefits. Medicare has four parts:

1. Part A: Hospital Insurance

2. Part B: Medical Insurance

3. Part C: Medicare Advantage

4. Part D: Prescription Drug Coverage

Individuals sign up for Medicare through the Social Security Administration. Learn more here.

Medicaid: Medicaid is a jointly funded health insurance program by the State and federal governments. There are different coverage groups for different populations. Individuals may be eligible for Medicaid coverage if they meet certain income and asset requirements. Medicaid covers approximately 300,000 older Illinoisans and 60% of nursing facility stays. Learn more here.

Private Health Insurance: Individuals may have private health insurance coverage from an employer or another source. Check with your plan for the details of coverage.

Paying Caregivers: Depending on the payor of your services (Medicare, Medicaid, private insurance, or out-of-pocket), some caregivers are employed by an agency and assigned to you, and others are hired directly by you. If a caregiver is employed by an agency, the agency is responsible for background checks, training, and supervision of the caregiver. Some programs allow for family members or friends to be paid to provide in-home care. Learn more here.

Long-Term Care Insurance: Individuals have the option to purchase long-term care insurance plans to help pay for future long-term care needs, whether in a nursing home or in the community. Learn more about whether this may be a good option for you here.

Private Pay/Out-of-Pocket: Some individuals may pay out-of-pocket for certain aspects of care.

Federal Tax Considerations: The Internal Revenue Service (IRS) provides specialized information for caregivers on claiming dependents and tax deductions on federal tax returns. Learn more here.