.png&w=256&q=75){kind=small}
Is Private Pay Home Care?
Date Updated: December 9, 2024
Written by:
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.
Reviewed by:
Gene Altaffer has a Masters in Gerontology from the University of Southern California and has worked in many avenues along the continuum of long-term care, assisting thousands of clients and their families since 1995. He also sold long-term care insurance from numerous carriers while also assisting families with retirement planning. Gene helps seniors navigate their Medicare plans, ensuring they understand their benefits and options.
Private pay home care is nonmedical support services provided at a senior's residence, paid for using private funds, such as income and savings. Seniors pay out-of-pocket for home care if they don’t meet eligibility criteria, including financial and functional, for public assistance programs.
Overview of Home Care Services
In-home caregivers provide nonmedical support in a senior’s private residence. Using tailored service plans, caregivers help older adults with essential day-to-day tasks, such as:
- Bathing
- Dressing
- Toileting
- Eating
- Running errands
- Providing transportation
- Preparing meals
- Performing domestic chores, such as housework and laundry
Seniors at risk of social isolation often benefit from dedicated companionship services, whereby caregivers spend meaningful leisure time with clients, engaging in activities such as watching TV, discussing the news, playing games and reading aloud. Home care allows seniors to age in place safely while maintaining as much independence as possible and reducing the responsibilities of family caregivers.
Costs of Private Pay Home Care
According to Genworth Financial, the national median rate of home care in 2024 runs $30 per hour. However, precise costs vary between cities and states. For example, hourly fees stand around $19 in Arkansas, $21 in Pennsylvania and $24 in North Dakota. Moving toward the higher end of the scale, seniors can expect to pay $35 in Massachusetts, $38 in Iowa and $45 in New Mexico.
Agencies create customized care plans that cater to individual needs and preferences. Costs also depend on the exact services delivered. Generally, light domestic assistance for a few hours a week is less expensive than extensive help with various daily living activities. Some seniors qualify for financial aid through Medicaid, often via waiver programs, to pay for in-home care. However, many older adults pay privately for support services in their residences, often drawing upon several resources to cover their costs.
Payment Options for Self-Funded Home Care
Individuals may use income, including pensions, Social Security benefits, annuities and rental property revenue. The Aid and Attendance allowance offers further potential income for qualifying veterans. Home care recipients may also use savings such as 401(k) plans and Individual Retirement Arrangements, and family members sometimes contribute financially toward an older relative’s care costs.
Many long-term care insurance companies pay for home care for policyholders who hit specific triggers, usually related to needing help with at least two ADLs or receiving a dementia diagnosis. Older adults aged at least 62 and who own property may apply for a reverse mortgage to release some of the equity in their home; they can then use the funds to cover home care fees. Other options include trusts and life insurance payouts.