Today, most home modifications will not be covered by Medicare or Medicaid, although there is a lot of activity trying to get this changed. It makes sense that insurance companies would want to be proactive in preventing falls and injuries in the home…again small investments yield large gains in healthcare spending. We assist clients and family members with researching potential funding resources.
Using $10,000 as a sample cost for basic structural modifications compared to assisted living costs at $3,000+/month, a simple equation shows that avoiding those costs for a little more than three months will pay for home modifications. If we include customary expenses for continuing bills such as utilities, taxes, maintenance, etc., of $850/month, food at $250/month, three hours of daily assistance twice weekly at $19/hour or $456/month, and three days per week in adult day services at $804/month, it will take about 14 months to break even on the modifications. By the end of 24 months there is a net savings near $10,000. But if one hospitalization or one serious fall with medical and health care consequences is avoided, the savings appear much earlier.