How Much Does In-Home Care Cost for Seniors?
In-home care for older adults provides valuable support, helping them maintain their independence and age comfortably in their own homes. The level of care can vary widely, ranging from basic assistance to more skilled medical care, depending on an individual’s needs.
The cost of in-home care is a common concern for many families. In this article, we’ll explore what in-home care entails, how much it typically costs, factors that influence pricing, and other important details.
What is in-home care?
In-home care is personalized to the needs of each individual. These services are typically offered to older adults who require assistance with activities of daily living (ADLs) but prefer not to move into a nursing home, assisted living facility, or other senior living community. Home health aides may assist with various tasks, including:
Companionship: Provide social interaction and engagement to reduce feelings of isolation.
Respite care: Allows family members who may usually be the primary caregiver to have a break or time off.
Housekeeping: Light cleaning services, grocery shopping, meal preparation, and laundry.
Personal care: Help with bathing, grooming, dressing, and mobility.
Skilled medical care: Licensed nurses can administer medicine, tend to wounds, and monitor health conditions.
Depending on the person’s needs, services can be provided for a few hours, a full day, or 24/7 for days, weeks, or months.
How much does home care cost?
Depending on the person or company you hire and how often you need their services, you might be paying per hour, per day, or per month. The average cost of these services in the United States is:
$36.83 per hour: Many service providers charge an hourly rate, and the price depends on their credentials and the level of care needed. Non-medical home health care usually comes with a lower hourly rate, while specialized services may cost more than the hourly average.
$294.64 per day: Some care providers charge per day instead of per hour. This may be a better option for individuals who require more continuous care. When it comes to around-the-clock care, the price will probably fall significantly above this day-rate average.
$6,483 per month: When calculating the cost per month, the cost greatly depends on how many hours of care per day the adult will receive. For non-medical services, such as help with ADLs or companionship, the cost may be below this monthly average, while skilled nurses may charge above $6,483 a month.
In 2024, the Genworth Cost of Care survey showed that the median cost of home health aide services increased by 3% to approximately $77,792 a year for hands-on personal assistance. Companionship and homemaker services also increased by 10%, with an annual median cost of $75,504.
What factors affect the cost of in-home care services?
Several factors can influence the cost of in-home care. A few include:
Location: As with most services and senior living facilities, the cost of care depends on where you live. In-home care in urban areas with a higher cost of living generally costs much more than in rural areas.
Level of care needed: Non-medical services are more affordable than skilled medical care provided by a licensed nurse or therapist. Additionally, the cost of light housekeeping and companionship is much less than care for those with medical conditions such as dementia, Alzheimer’s, or Parkinson's disease.
Frequency and duration of care: Some providers offer discounts for longer contracts.
Caregiver qualifications: Caregivers with higher qualifications, such as registered nurses (RNs) or licensed practical nurses (LPNs), typically charge higher rates.
Private vs agency care: Hiring an independent caregiver may be less expensive than going through an agency. However, agencies usually offer added benefits such as background checks, training, and caregiver replacement if necessary.
Which states have the most expensive and cheapest in-home care costs?
Depending on the city and state, in-home care costs can range between $21 and $50 per hour. States like Maine, New York, Alaska, and California have higher living costs and, in turn, higher costs of in-home care. On the other hand, states such as Louisiana, Mississippi, and Alabama offer some of the most affordable in-home care services in the US.
Keep in mind that costs can also vary within states depending on the area.
Does Medicare cover the costs of in-home care?
Many Medicare plans offer partial coverage for in-home care services, provided the care is deemed medically necessary. Skilled nursing care and therapy may be covered, but assistance with daily living activities is not.
To qualify for Medicare home care benefits, individuals must meet certain eligibility criteria, including being homebound and having a true need for skilled nursing care. Medicare does not cover full-time home healthcare services, and the caregiver or agency providing the care must be Medicare certified.
How do most people pay for home health care costs?
There is no doubt that senior care plans can be a significant financial challenge, especially when long-term or 24/7 care is needed. Some families can pay out of pocket, while others rely on a combination of resources and financial assistance programs. Here are a few of the most common ways people cover the costs of in-home care:
Private funds: Many families use personal savings, though this can become unsustainable for long-term care.
Long-term care insurance: For those who invested in long-term care insurance in advance, their plan typically covers some or all of the costs of in-home care. However, all plans are unique and it’s best to review your policy.
Veterans benefits: Veterans and their spouses may be eligible for home health care services, including assistance with ADLs.
Medicare and Medicaid: Medicare may cover some aspects of in-home care but with many limitations. Medicaid coverage varies by state and may cover both personal care and skilled medical services.
Family caregivers: Instead of paying for professional home health aides, some families take on the caregiving role themselves. While this can significantly reduce costs, it can also place a heavy emotional and physical burden on family members.
Reverse mortgage: Adults 62 and older may use a reverse mortgage to help cover in-home care costs, although this option carries certain risks and may not be suitable for everyone.