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Are Home Care Packages Means-Tested?
Date Updated: December 9, 2024
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Sarah has produced thousands of articles in diverse niches over her decade-long career as a full-time freelance writer. This includes substantial content in the fields of senior care and health care. She has experience writing about wide-ranging topics, such as types of care, care costs, funding options, state Medicaid programs and senior resources.
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Rachel is a skilled finance manager with a Master of Accounting and a Bachelor of Arts in English. With 10 years of experience in finance, she specializes in business, finance, law, real estate, and marketing. Rachel has worked in personal financial planning, wealth management, and tax accounting, serving senior clients, and has spent nine years in corporate financial planning and analysis. Currently, she manages finances for a Fortune 500 company in New York City.
No, home care packages aren’t means-tested in the United States. Agencies charge an expected median hourly rate of $30, according to Genworth Financial’s 2024 forecast. This equates to $5,720 monthly, based on 44 care hours each week. However, seniors may qualify for financial assistance programs that reduce out-of-pocket costs.
Medicaid Funding for Home Care
Most state Medicaid plans include home care coverage for eligible seniors. In some states, such services fall under their regular Medicaid programs, but most provide funding through Home and Community-Based Waiver Services programs. Exact service coverage and eligibility criteria vary between locations, but conditions typically relate to age, support needs and financial resources. Seniors who exceed income or asset limits don’t qualify for Medicaid assistance.
Standard services include assistance with everyday living activities, such as:
- Transferring between the bed and a chair
- Bathing
- Dressing
Personalized care packages may also include:
- Domestic chores
- Meal preparation
- Running errands
- Transportation
- Companionship
Individuals should contact their local Area Agency on Aging for further details and application assistance.
VA Funding for Home Care
VA benefits pay for home care for qualifying veterans. Location and needs-dependent homemaker services support seniors with day-to-day activities, enabling them to remain independently at home. Co-pays may apply depending on individual circumstances.
Additionally, those who receive a VA pension — including veterans and their spouses — might qualify for the Aid and Attendance allowance or Housebound benefit. Individuals can use this supplemental payment to pay for home care packages. For more information about financial assistance for veterans, seniors can visit a regional benefit office, connect with an accredited representative or call the dedicated VA benefits hotline.
Other Ways to Pay for Home Care
Seniors who don’t qualify for financial support or have co-pays must self-fund home care services. As well as using income and savings, senior homeowners may consider taking out a reverse mortgage. Additionally, many long-term care insurance policies cover home care, subject to criteria. Medicare doesn't typically pay for nonmedical home care.