How to Pay for In-Home Care

These days, modern medicine allows older adults to live longer, and many cherish their independence. In-home care provides the perfect solution for those who wish to age in place but require some assistance with activities of daily living.

Financing this care can be a concern, but in-home caregivers are often more affordable than you might think, especially compared to nursing homes or assisted living facilities. Costs vary depending on location and level of care needed; however, there are multiple avenues for financial assistance available, which we’ll explore in detail below.

Planning for long-term care involves several factors like your loved one’s current and future medical needs, family support system, and budget. Remember, the vast majority (over 90% of people 65+) prefer to stay in their homes. In-home care is a popular option that allows them to do just that. As their needs change, ComForCare adapts to ensure their continued comfort and well-being.

How Much Does In-Home Care Cost?

Since 2004, senior care costs (both in-home care and at senior living communities) have steadily increased, averaging 1.5% - 3.8% per year. In-home elder care costs depend on where you live, as prices can vary greatly by market. According to Genworth’s 2024 Cost of Care Survey, the average price for a home health aide is $5,417 a month.

Note: Rates vary by location, hours a week, and types of care; please contact us to inquire about home care pricing in your area.

Paying for Care at Home: What Are My Options?

In-home care, homemaker services, and other personal care services are typically paid for out-of-pocket. However, that’s not always the case. Here are eight other ways you may be able to cover long-term care costs and make in-home care payments:

1. Long-Term Care Insurance

   This is a supplemental policy purchased through a life insurance company. Long-term care insurance reimburses policyholders a set amount per day for home care services. It's vital to know your insurance coverage options and life insurance benefits inside and out. Contact your private health insurance or life insurance policy provider to see if this is an option for you.

2. Veterans Pension

   A veterans pension provides a home care allowance to qualifying veterans and their surviving spouses. Additionally, veterans with higher incomes may qualify for a reduced pension amount. To learn more about eligibility and how to apply, visit the U.S. Department of Veterans Affairs website.

3. Catastrophic Auto Insurance

   Catastrophic auto insurance acts as personal injury protection or “no-fault” insurance, which can cover home care expenses in some cases. This is particularly helpful if a car accident results in injuries that require ongoing care and may even extend to cover family members who were not in the vehicle at the time of the accident. However, it's important to check with your auto insurance provider to see if your policy offers this coverage, as it's not universally available.

4. Workers’ Compensation

   Workers' compensation may cover in-home care costs associated with an illness or accident. This can be a valuable resource, as these benefits can help pay for ongoing care needs resulting from a workplace injury or illness. It's important to note that workers' compensation coverage is mandated by law for most employers, but eligibility and coverage details can vary by state. Consult with your employer or the relevant workers' compensation agency for more information.

5. Reverse Mortgages

   Reserve mortgages are available to people 62+ who own their home with significant equity (usually at least 50% of the home’s value). The funds can be received in monthly installments, a lump sum, or even used to establish a line of credit. Check with you or your loved one’s bank for eligibility requirements, terms, and conditions, but be aware that reverse mortgages come with closing costs and ongoing interest that can reduce your home’s equity over time.

6. Medicaid Programs

   Medicaid may cover home care services and nursing services through a waiver program, which varies by state. The waiver programs are often coordinated through area agencies on Aging. Contact us to see if we can participate in a waiver program.

   It’s important to note Medicare does not pay for long-term home care services. Medicare covers short-term home health care prescribed by a physician. These services include skilled nursing, physical therapy, occupational therapy, and speech therapy. Assistance with bathing, feeding, meal preparation, and other personal care may also be provided while a person is receiving home health care and support with the tasks of daily living.

7. Area Agencies on Aging

   These agencies provide a variety of services and assistance programs (including in-home care) to adults 60 and older. Services provided through local agencies are determined by performing a community needs assessment and vary by location. To find your local AAA, go to the Elder Care government website and search by your ZIP code, or call 800-677-1116 to speak with a specialist.

8. Family Funds

   Family funds can be set up among siblings and other family members to cover the cost of home care for an aging parent or relative. Be sure to spell out the terms of the agreement clearly and consult an elder law attorney for guidance.

Provide Relief for Family Caregivers With Quality In-Home Care from ComForCare

Providing quality in-home care is just one way ComForCare supports families. We understand navigating long-term care options and finances can be overwhelming; that’s why we connect you with resources and programs to ease the financial burden.

Check with your or your loved one’s insurance about coverage, or contact us for a free insurance eligibility verification. If you have additional questions or would like to schedule a complimentary in-home consultation, call 800-886-4044 or find a ComForCare Home Care location for affordable home care options near you.