Senior In-Home Care Costs

Types of In-Home Care for Seniors

The broad area of home care refers to two specific types of services — home care and homemaker.

Homemaker services help with certain daily living tasks, such as housekeeping, shopping, cleaning, and preparing meals. They also can provide companionship for seniors, which is a vital aspect of ensuring older adults can remain in their homes and that they can remain emotionally well while they age.

On the other hand, home health aides typically handle more personal duties, such as bathing and grooming, and they may provide certain health-related services like assisting with medications, wound care, and vital sign monitoring.

Average Cost of Home Health Care Nationally

Most home health care workers charge hourly rates, usually through a home health agency, though they can be hired on a private, family-by-family basis. Agencies typically charge 20 percent to 30 percent more than individual caregivers. However, reputable agencies conduct background checks of caregivers and may be better equipped to provide all types of care an individual requires.

Both types of in-home care have gotten more expensive over the years, each averaging just under $1,000 for eight hours of work each week, or about $30 per hour. As with any other type of senior care, costs vary not only by the services provided but also by the needs of the person receiving care.

For example, it would be more affordable to hire someone to help with minor household chores three to five hours a week than to hire a caregiver to provide extensive medical services eight for several hours each day.

Homemaker Services Costs By State

In-home care costs depend on the care provided and where the person lives. Because these costs are based on caregiver wages, they vary quite a bit from state to state. Costs are highest in Montana at around $ 9,721 per month and lowest in Mississippi at $2,946 per month.

*Based on estimates from Genworth:

How to Pay for Home Care for Seniors

There are several ways to pay for home care for seniors, including private payment and governmental and/or local assistance options. Here are some common questions concerning paying for senior home care.

Does Medicare Cover Home Care Costs?

Medicare does not cover non-medical care not ordered by a physician or care practitioner. There is no Medicare coverage for those receiving care for ADLs, but any care related to medical needs is covered. Home health aides, CNAs, nurses, and therapists are covered under Medicare. However, recipients must be declared homebound and have a doctor prescribe this type of care, which is typically limited compared to time spent by a home care aide.

Does Medicaid Cover Home Care Costs?

Medicaid is a state and government-sponsored program designed to serve low-income persons. Coverage differs drastically from Medicare, as Medicaid covers non-medical in-home care, plus medical services. When provided as in-home care, this Medicaid program is called Home and Community-Based Services. There are often state-specific waivers that beneficiaries must apply for and receive for maximum coverage.

Do Veterans Benefits Cover Home Health Care?

The Department of Veterans Affairs (VA) does provide certain coverages for home health care. In certain cases, the entire cost may be covered, while in other situations, this organization helps recompense veterans to reduce their expenditures for home health care. These benefits will vary depending on which policies are in force: Improved Pension, Aid and Attendance, and Homebound.

Self-Payment Options

Of course, self-payment is always an option for families requiring senior health care. Some options include:

• Life Insurance Policy Conversions
• Reverse Mortgages & HELOCs
• Long-Term Care Insurance
• Home Care Loans

Is Home Health Care Tax Deductible?

Expenses for home care aides and even home health aides are limited. Non-medical related expenses, such as assistance with ADLs, are not generally tax deductible. However, those seeking nursing and medical-related expenses might qualify for a tax deduction for declaring an additional independent (similar to declaring a child on taxes) or even dependency status. If the primary purpose of in-home health care is medically related, tax claim options exist to accommodate those needs. Do note that only medical expenses are deductible under the medical claim and are limited by law.