Insurance plans often have restrictions and limits. If your insurance does not cover the services you need, or discontinues payment for services sooner than you are ready for or expect, you are generally left to pay the difference ‘out-of-pocket.’ Private Pay, also referred to as ‘out-of-pocket payments’, helps to cover the difference in situations such as this.
Outside help paying for in-home care services is limited and usually covers only short-term home health care needs. Paying privately for home healthcare services is often a necessary option for individuals who want to remain living independently in their homes. Since Medicaid and Medicare typically do not pay for Long-Term Care, the burden of payment becomes that of the individual or their extended family. Individuals using insurance, such as Long-Term Care Insurance, are considered ‘private pay’ since they are not being covered by a government program.