A nursing home is a solution for residence combined with treatment for the elderly who need assistance with everyday activities and keeping their health. A nursing home provides nursing, medical, social, cultural and leisure services to the tenants, allowing them to live respectfully and with a high level of life quality. A nursing home can be governmental or private and its funding is relied on the financial and medical state of the tenants and their family members. In this article we will realise how to fund a nursing home and discuss the different possibilities of private funding, the ministry of health code, private insurances and savings.
Private Funding
Private funding is the most common option to pay for a nursing home. With private insurance, the tenant or their family pay the monthly payment to the home from their private accounts. The monthly payment takes into consideration the level of treatment and the services the tenant receives, the quality and the location of the nursing home. Usually, the monthly payment for a nursing home is higher than for a regular home or assisted living home, because it includes the payment for the nursing and medical treatment the tenant requires. The monthly payment for a nursing home can reach tens of thousands of shekels a month. Thus, it can be a burden on the tenants and their families.
So it is necessary to be ready for a private funding option and look for the most suitable home for the needs and the fiscal capabilities of the tenant. There are several ways to lessen the economic burden of private funding, such as:
Selling the asset or apartment of the tenant or renting it to someone else and use the income to pay for the nursing home.
To ask for financial help from family members or friends of the tenant, or join a charity fund that assists the elderly who need nursing assistance.
To look for a nursing home that offers discounts to tenants with low income or that are eligible to pension or payments from the state.
The Ministry of Health Code
The Ministry of Health Code is another venue for funding a nursing home. The ministry of health code is a monthly payment that the state gives the elderly who need nursing treatments and qualify to a set of certain conditions. The monthly payment changes according to the nursing needs of the person and it can reach up to 4,000 ILS per month. The monthly income is used to cover some of the cost of the home but does not cover it fully. Thus, the tenant or his family still need to cover the difference from their own pockets.
To receive the Ministry of Health Code, the tenant needs to undergo a medical and social evaluation that assesses his nursing needs. The assessment is made by a physician, a nurse and a social worker from the ministry offices. The interview is done in the elderly’s home or the residence he is in. the test includes questions about the medical, physical, mental and social state of the tenant and various measurements of physical and mental capabilities. The test is held every two years or sometimes more, if the tenant’s status changes.
The Health Ministry Code is not enjoyed by every applicant. Some conditions restrict the eligibility, such as:
The applicant must be at least 65 years old if he is disabled or was injured at work.
The applicant must be an Israeli citizen or a permanent resident.
The applicant must be a member in one of the four main Israeli Health Maintenance Organizations.
The applicant must need nursing services at a level of at least 3.5 hours a day, or at least 1.5 hours a day if he lives in an assisted living home.
The applicant needs to be unable to do the following activities on their own: dress, undress, wash, urinate, eat, be mobile, stand up and sit down, take care of medical needs, communicate and engage in community activities.
Private Insurances
Private insurances are another option to fund a nursing home. Private insurances are contracts made between the tenant or their family members between the insurance company which is obligated to pay a monthly payment or a single payment to the tenant or the home, in case the tenant will need nursing treatment. The monthly payment or the single payment are dependent on the type of insurance, the conditions of the contract, the age and state of health of the tenant and the set amount of insurance. The single or monthly payment can be supplemental or covering the complete cost of the home, according to the contract’s terms.
There are a number or private insurances that relate to nursing treatment, such as:
-Nursing Insurance: This insurance sends a monthly payment to the tenant or the home, in case the tenant will need a nursing treatment of some level. The monthly payment is not dependent on the tenant’s choice of residence and he can use it in any type of residence he chooses, including a nursing home.
-Life Insurance: This type of insurance pays a single payment to the tenant or the nursing home, in case the tenant dies. The single payment is dependent on the amount of insurance set in the contract and it can be supplemental or fully covering the complete cost of the home. A life insurance can be a contract for a long term or a short one and it can be combined with other insurances such as nursing insurance or health insurance.
-Health Insurance: This insurance pays a monthly or yearly payment to the tenant or the home, in case the tenant will need a medical or nursing treatment. The monthly or yearly payment is dependent on the set amount of insurance. The monthly or yearly payment can be supplemental or fully cover the full or partial cost of the medical or nursing treatment that the tenant receives. A health insurance can be a long or short termed contract and may be combined with other insurances, such as nursing or health insurance.
Savings are the final option for funding a nursing home. Savings are capital the tenant or his family have saved for the future, capital they can use to pay the monthly bill for the home. Savings can be in the form of a bank account, a pension fund, an education fund, savings fund, treasury certificates, stocks, bonds, assets or any form of investment. The savings can be supplemental or fully covering the cost of the home, according to the sum of the savings and the home’s monthly payment.
For these reasons, it is important to start saving ahead of time for the option of future nursing treatment and choose the most adequate and renumerating form of savings. There are a number of advantages for saving for nursing treatments, such as:
Being independent and not rely on family of state funding.
Being flexible and not dependent on conditions or restrictions of insurances or codes.
Being safe and not vulnerable to risks or market policy changes.
Summary
In this article we talked about how to fund a nursing home. We examined the various options of private funding, Health Ministry Code, private insurances and savings. In every option, there are advantages and disadvantages and it is important to choose the most suitable option for the financial and medical state of the tenant and their family’s. In addition to that, it is important to prepare in advance to the option of a future nursing need and to look for the most adequate home, suitable to the needs and financial capacity of the tenant.
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