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.).

Exceptions:

• Medicare Advantage (Part C) may offer extra benefits.
• Some hospice care is covered under Medicare Part A.

• 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.

Need personalized help? Reach out to a senior care financial specialist for a free consultation.