How to Pay for Home Health Care: 5 Little-Known Funding Options

Home health care allows seniors to age in place with dignity, but the costs can be overwhelming—averaging $4,500/month for full-time care. While many families assume they’ll have to pay out-of-pocket, there are lesser-known funding options that can make care more affordable.

This guide reveals 5 underutilized ways to pay for home health care, along with expert tips to maximize benefits.

Before exploring payment options, it’s important to understand the expenses:

• Hourly rates: $25–$40/hour for aides, $80+/hour for skilled nursing
• Full-time live-in care: $4,000–$7,000/month
• Specialized care (dementia, post-surgery): Even higher

Most families don’t realize financial help exists beyond private pay. Let’s change that.

1. Medicaid Waivers & Home & Community-Based Services (HCBS)

• Who qualifies? Low-income seniors (varies by state).
• What’s covered? Personal care, homemaking, therapy.
• Key perk: Some states allow family members to be paid caregivers.

2. Veterans Benefits (Aid & Attendance Pension)

• Who qualifies? Veterans (or surviving spouses) who served during wartime.
• What’s covered? Up to $2,300/month for home care.
• Key perk: Doesn’t require service-related injuries.

3. Long-Term Care Insurance Riders

• Who qualifies? Policyholders with LTC riders on life insurance.
• What’s covered? Reimbursement for home health aides.
• Key perk: Some policies pay family caregivers.

4. Reverse Mortgages for Home Care

• Who qualifies? Homeowners 62+ with equity.
• How it works: Converts home equity into tax-free cash.
• Key perk: No repayment until the home is sold.

5. State & Non-Profit Assistance Programs

• Examples:
• • PACE Programs (All-inclusive care for seniors)
  • Alzheimer’s grants (via non-profits)
  • Local charities & religious organizations

Common myth: “Medicare pays for long-term home care.”

Reality: Medicare only covers short-term skilled nursing (e.g., post-hospitalization), not custodial care (help with bathing, meals, etc.).

• Share a caregiver with a neighbor (cost-splitting).
• Use respite care for temporary relief.
• Hire independent aides (cheaper than agencies).
• Look into tax deductions (medical expense write-offs).

Paying for home health care doesn’t have to mean draining savings. By leveraging Medicaid waivers, VA benefits, and hidden assistance programs, many families cut costs significantly.