Will Crowdfunding Pay Your Long Term Care Costs?

We all know that the cost of medical care and long term care can be expensive. And at current rates, there isn’t likely to be a decrease in price any time soon. There has been an increase in people gaining medical coverage with the help of Obama’s Affordable Care Act. However, this does not mean that these people or anyone paying for insurance on their own has full medical coverage. But, this does not seem to slow people down from receiving the care they need. Those smart enough and brave enough to try a new and easy technique to receive money for the care they need have received enough to care for some if not all of their medical bills. What is this new technique you ask? Crowdfunding. Many people have tried it for college tuition, vacation time, and other small ventures so why not try it for medical expenses. A site called YouCaring asks for small donations from individuals to help with costs. Other sites like GoFundMe, GiveForward, and Fundly have devoted sections to health expenses including specific diseases like cancer. As more people face unexpected health costs for themselves or loved ones, many are turning to sites like these to raise the funds.

Despite Medicare coverage, many older adults are facing depleted financial resources and a difficult time paying for their medical and long term care. Chicago based GiveForward has raised over $149 million in crowdfunding campaigns and almost all of it goes to unexpected medical expenses. Almost 80% of the money raised comes from people that the person knows so the key to successful crowdfunding is getting people with big active networks involved. A tip would be to start the process with friends and family first, and slowly expand from there. Crowdfunding is also tax-free as the IRS treats these donations as gifts for their recipients. However, a person using a crowdfunding website may need to spend money to make money as many sites charge a fee. GiveForward for example charges a 7.9% fee along with 50 cents per donation transaction.

While crowdfunding may be the newest trend, many people may not feel comfortable asking for money or displaying their personal problems to the public. Crowdfunding is also not a sure way to raise money especially if people don’t have money to give. This is understandable.

Whether or not you see medical expenses or long term care costs in your future, it is always important to have a plan in place just in case. Kamper, Estrada, & Simmons, LLP can help you with this plan and your financial needs so your health doesn’t also break your pockets. With a plan established, if a situation were to arise where you needed long or short term medical care, you would receive the care you needed and your family can sleep easily knowing that you took the proper actions without putting unadded stress on top of an already difficult time.

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