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Typically, families pay by the hour or by the day for adult day care, since most people don’t spend all day there every day. As of March 2022, the average daily rate (for up to eight hours) for adult day care facilities in the U.S. is $80, according to Genworth’s Cost of Care database.

Costs depend on the services provided, the individual’s needs, and the city or state where the facility is located. Typically, adult day care can be divided into two broad types — social care and healthcare. In both situations, though, services like meals, social activities, and basic health services are usually provided.

Adult day healthcare usually involves more medical services, such as medication dispensing or therapy for health conditions like dementia and others.

Average Costs of Adult Day Care Nationwide

Most people who visit adult day care facilities will spend between four and 12 hours per day there, up to five days per week. Adult day care services, including those that are social as well as healthcare-focused, are popular respite care options for families and loved ones responsible for providing care to older adults. 

For many families, adult day care services are a more affordable alternative to full-time nursing care or in-home care services, both of which are much more expensive on average.

With an average daily rate of $80, adult day care is far lower than the equivalent for home care services ($168), in-home health care ($174), assisted living ($152), or residential nursing homes, which start at $268 for a semi-private room and go up to $306 for a private room.

It’s important for older adults and their families to do their research to find which facilities in their area are the most affordable, as well as pay attention to fee structures to determine if there is an hourly or daily cost associated. Some facilities charge by the hour, while others offer flat rates.

Average Costs of Adult Day Care by State

Adult day care averages $80 per day in the U.S., but prices vary quite a bit depending on the state. Such services are most expensive in sparsely populated states like Maine ($165), Wyoming ($155), and Alaska ($145). They’re cheapest in Alabama ($31) and Texas ($33). Nationally, families can expect to spend about $1,600 for one month of adult day care for their loved one.

State Median Monthly Adult Day Healthcare (160 Hours)
Alabama $620
Alaska $2,900
Arizona $1,760
Arkansas $1,740
California $1,640
Colorado $1,540
Connecticut $1,780
Delaware $1,560
District of Columbia $2,160
Florida $1,340
Georgia $1,280
Hawaii $1,500
Idaho $2,180
Illinois $1,560
Indiana $1,640
Iowa $1,280
Kansas $1,640
Kentucky $1,520
Louisiana $1,340
Maine $3,300
Maryland $1,760
Massachusetts $1,520
Michigan $1,980
Minnesota $1,880
Mississippi $1,280
Missouri $1,700
Montana $2,020
Nebraska $1,480
Nevada $1,500
New Hampshire $1,760
New Jersey $1,800
New Mexico $2,380
New York $1,840
North Carolina $1,220
North Dakota $2,140
Ohio $1,240
Oklahoma $1,440
Oregon $2,460
Pennsylvania $1,440
Rhode Island $1,540
South Carolina $1,220
South Dakota $1,560
Tennessee $1,600
Texas $660
Utah $1,840
Vermont $2,840
Virginia $1,520
Washington $2,060
West Virginia $2,140
Wisconsin $1,260
Wyoming $3,100

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.

Did You Know: A more affordable alternative to adult day care may be a medical alert system such as Medical Guardian.

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.

Reviewed By

Scott Witt

Elder Home Care Expert

Scott founded Select Home Care Portland in 2009 and has been helping seniors live their best life at home or in their local senior community ever since. As an advocate for seniors, the primary philosophy has been to listen, educate and provide… Learn More About Scott Witt

Written By

Jeff Hoyt

Editor in Chief

Since graduating from Harvard with an honors degree in Statistics, Jeff has been creating content in print, online, and on television. Much of his work has been dedicated to informing seniors on how to live better lives. As Editor-in-Chief of the personal… Learn More About Jeff Hoyt

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