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What Is Cheaper, Home Care or a Nursing Home?
Date Updated: December 8, 2024
Written by:
Tiffany Amber Stockton, an award-winning author and speaker, excels in crafting narratives on senior healthcare, with an expertise in memory care after helping her grandfather live with dementia. With twenty-six published books to her credit, she uniquely blends literary prowess with a compassionate understanding of the challenges faced by older adults. Follow her on LinkedIn for updates on her distinguished writing career in the realm of professional copywriting and copyediting.
Reviewed by:
Kristi Bickmann, a licensed Long-Term Care Specialist, represents top-rated "Traditional" & "Hybrid" LTC companies. Serving associations such as the American Nurses Association, she's a licensed insurance agent in 27 states. Specializing in insurance products for seniors, Kristi helps hundreds of families every year protect assets, retirement, and loved ones. She understands aging concerns firsthand, having assisted her own parents. Kristi ensures accuracy on topics about senior long-term care and its consequences.
Home care is cheaper than a nursing home. However, the lowest-cost option isn't always the best choice. A cost comparison factors in the level of care needed, geographic location and individual circumstances. Most long-term care insurance policies, Medicaid and Veterans Affairs benefits may cover a portion of costs for eligible individuals, but eligibility and out-of-pocket expenses vary by insurance plan and program.
Comparing the Costs of Home Care and Nursing Homes
Home care allows individuals to tailor services to their specific needs and budget. Families can adjust the frequency and duration of care as required, potentially reducing overall costs. Caregiver assistance services generally come with hourly rates, which typically run about $32 per hour, as indicated by the Genworth 2024 Cost of Care Survey. While home care initially appears cheaper, additional expenses, such as home modifications, medical equipment and transportation services, could increase the costs, especially for those with complex medical needs.
Nursing homes charge on a daily or monthly basis, with costs varying widely based on location, services provided and room type. The median price of a semi-private room in a nursing home, $8,669 per month, includes comprehensive services such as room and board, medication management, skilled nursing care and rehabilitation, which often justify the higher rates.
Factors Influencing Cost-Effectiveness
When considering long-term care options, it's crucial to evaluate both the cost-effectiveness and the potential impact on quality of life. Here are some key factors to consider in making an informed decision:
Level of Care Needed:
- Home Care: Most cost-effective for individuals who can safely age in place with less intensive care.
- Nursing Homes: Better suited for those with complex medical needs or safety concerns, offering a higher level of care.
Geographic Impact:
- Costs can vary significantly, with urban areas typically more expensive than rural ones.
Quality of Life and Social Factors:
- Home Care: More beneficial for individuals with a strong community of family and friends.
- Nursing Home: May be the best option depending on personal circumstances and the need for specialized care and 24-hour monitoring.
It’s important to carefully weigh all options when choosing the most appropriate long-term care setting.