Costs for nursing care, household assistance, and personal care that are not covered by long-term care insurance will be billed to you or your family member. For full-time and part-time inpatient care, the following costs must be paid out of pocket:
- Lodging and Meals
- Capital expenditures (the operator’s expenses for new construction, maintenance, technical equipment, etc.)
- Standardized copayment
- if applicable, a training allowance (reimbursement of training stipends and operating costs for nursing schools through a pay-as-you-go system)
- Additional costs, if any
If the investment costs cannot be covered by the resident’s own funds, in some federal states the counties and independent cities provide a subsidy in the form of a housing allowance for long-term care equal to the investment costs. As a rule, the institution applies for this expense subsidy.
The person in need of care must use all of their income and assets to cover the costs they are responsible for. In the case of spouses, their joint income and assets are taken into account to an appropriate extent if one spouse lives permanently in a nursing home.
Income includes:
- All income, such as salaries, pensions, and retirement benefits
- Housing Allowance
- Support payments (from spouses, children, or parents)
- Income from Renting and Leasing
- Investment Income
- Voluntary contributions from third parties, provided they are not merely small gifts
The following, among other things, are not considered income:
- Compensation for Pain and Suffering and Blindness Benefits
- Basic Pension Under the Federal Pension Act (BVG)
Note
Fixed expenses, such as insurance premiums, taxes, or dues to associations, are deducted from the income to be taken into account. The so-called “adjusted income” must then be used in its entirety to pay for the nursing home care.
- Savings
- Real Estate
- Valuable furniture and paintings
- Valuable Jewelry
However, the so-called exempt assets may not be touched. These include, among other things:
- Cash up to 10,000 €. The amount increases by an additional 10,000 € if the nursing home resident is married, and by an additional 500 € for each additional person supported by the person in need of care or by the spouse.
- A reasonable amount of household goods
- Items that aren’t a luxury to own, such as musical instruments, books, and photography equipment
Income & Assets for Married Couples
If a spouse lives in a long-term care facility on a permanent basis, all of their income and assets must be contributed in an appropriate manner. The exemption also applies to spouses.
Note
Savings set aside for one’s own funeral are generally protected from being seized. However, according to case law, only a reasonable amount is to be taken into account. To that end, an arrangement should be made, such as an account with a restriction note. Many funeral homes also offer pre-need plans. Here, you can deposit money, save, or purchase funeral insurance.
In practice, asset valuation is handled in a variety of ways. Please check the current status and seek personalized advice on this matter.
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