Adult Day Care Costs

Adult day care is usually payed on a daily or hourly basis. According to the Administration for Community Living, the average cost per day is around $25 to over $100, depending on the services offered. Adult day care costs can also vary depending on the location of the service that you choose.

Adult day care is essentially a place that seniors can feel safe during the daytime while their primary caregivers go to work or take a small respite from their caregiving duties to avoid burnout. There are two main types of adult day care options: adult social day care and adult day health care. Traditional adult day care provides seniors with skilled supervision in a structured setting with social and recreational activities, meals and basic health services.

Adult day health care facilities provide the same services but offer participants a higher level of health care services such as IV meals, medication administration and assistance for seniors with various forms of dementia or other health conditions. When compared with the costs of alternative senior care methods, adult day care is typically one of the most affordable options to help meet the needs of working families.

Average Costs of Adult Day Care Nationwide

The time a senior spends in an adult day care setting can range from 4 to 12 hours per day and up to 5 days per week, so the costs of care will vary. However, this option is about 50% less than the national average for in-home care or other options such as assisted living. Nationally, the average daily cost for adult day care is $70, while the monthly average is about $2,100. Annually, one can expect to spend an average of $25,200. While some providers of adult day care charge hourly, others may bill by half or full days. These estimates do not include the actual costs if one utilizes government subsidies or health insurance.

Average Costs of Adult Day Care By State

Demographics play a large role in the cost of healthcare and can range dramatically even amid each state. These averages are for individuals receiving 8 hours of daily care for 5 days per week.

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.