Adult Day Care Costs
Costs for adult day care are usually paid on a daily or hourly basis, since most clients of adult day care facilities spend less than a full day there. As of May 2021, the average daily rate (up to eight hours) for adult day care facilities in the U.S. is $74, according to Genworth’s 2020 Cost of Care analysis.
The services provided, the city or state where the facility is located, and the individual’s needs can all impact the cost of adult day care. There are generally two types of adult day care facilities — those that provide social care and those that provide healthcare. But in both cases, services like meals, social activities, and basic health services are included.
However, in adult day healthcare, medical services provided may be more involved. This could include dispensing medications or providing therapy for mild dementia or other health conditions.
Average Costs of Adult Day Care Nationwide
Most older adults who visit day care facilities will be there for between four and 12 hours per day up to five days per week. One reason many families choose to avail themselves of adult day care is that it’s considerably less expensive than full-time nursing care as well as in-home care.
As we said, the average daily rate for adult day healthcare is $74, which is much lower than the daily cost for homemaker services ($147), home health aides ($150), assisted living ($141), or nursing home care, which ranges from $255 for a semi-private room to $290 for a private room.
Specific charges depend on the facility, with some charging by the hour and others having a flat day rate.
Average Costs of Adult Day Care By State
As you might expect, adult day care costs are inconsistent across the U.S. The most expensive daily cost is in Maine ($160), and the lowest is in Texas ($32). You can expect to spend just under $1,500 per month on average in the U.S. for eight hours per day, five days per week.
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How to Pay for Adult Day Care
There are numerous ways to pay for adult day care, but the most asked about options are Medicare, Medicaid, Veterans Benefits and self payment options.
Does Medicare Cover Adult Day Care Costs?
While most seniors qualify for Medicare benefits, the fact is that Medicare does not cover any costs associated with adult day care. While often confused with Medicaid benefits, Medicare in no way currently contributes to adult day care costs, regardless of supplemental policies that are on the marketplace.
Does Medicaid Cover Adult Day Care Costs?
Currently, Medicaid provides comprehensive coverage for both adult day care and adult day health care. This is particularly true for individuals that would generally require nursing care on a full time basis. While regulations vary from state to state, for those who qualify for Medicaid it is a top option to ensure that coverage for these services is available.
Do Veterans’ Programs Cover Adult Day Care Costs?
The program for Veterans Health Benefits (VHA) will cover expenses associated with adult day health care as included in the Veteran’s benefits package, but will not generally cover adult day care for social purposes or for caregiver respite. Additionally, those seeking coverage for such care will need to have a VA physician approve these services as needed. There may be co-pays for such coverage depending on income and levels of care involved. Veteran’s Pensions including Aid and Attendance is one exception to the non-coverage policy concerning non-health and health day care. Those with this supplementally policy may qualify for benefits for even social adult day care situations.
What are Private Payment Options for Adult Day Care
Many individuals ultimately end up using retirement funds, savings or other forms of payment for adult day care. Long term insurance is a popular option, but the qualifications for this type of care will depend upon the policy. Some long term policies only allow for coverage for health care related expenses within assisted living homes or nursing facilities while other policies are more generous. Other private payment options can include reverse home mortgages, loans or by cashing out on the value of life insurance policies.
Are Adult Day Care Costs Tax Deductible?
While the dependent care credit is typically associated with children, it can be used to deduct daycare expenses. However, individuals also have the option to consider a medical expense deduction for their loved ones receiving adult day care. It’s important to note, that taxpayers can only claim one deduction or the other, so a financial advisor such as a tax professional can run the numbers and guide you towards the most beneficial claim.