Paying for Elderly In-Home Care: Insurance, Savings & Other Funding Options

When it comes to providing high-quality care for aging loved ones, the financial aspect is often one of the biggest challenges. Senior home care ensures older adults receive the support they need in the comfort of their own homes, but figuring out how to pay for it can feel overwhelming. This guide breaks down the available insurance and funding options to help you make informed decisions.

Private Pay & Savings

For many families, private pay—using personal savings or income—is a common way to fund senior home care. This option provides the most flexibility in choosing care providers, as there are no restrictions tied to insurers or external funding sources.

• Pros – Full control over care choices, no eligibility requirements, and faster access to services

• Cons – It can deplete savings quickly, especially if long-term care is needed.
• Tip – Establish a budget early on. Determine how much you can realistically afford every month, factoring in other expenses. 

Families often combine private pay with other sources of funding to reduce the financial strain.

Medicare for Limited Home Care Services

Medicare is a federal health insurance program primarily for people aged 65 and older. While Medicare doesn’t usually cover long-term home care, it can help with short-term care needs under specific conditions.

• What it covers – Post-hospitalization care, skilled nursing services, and certain therapies (e.g., physical, occupational, or speech therapy)

• Limitations – The coverage is short-term and only applies if the care is deemed medically necessary by a doctor. It doesn’t cover custodial care like assistance with bathing, dressing, or meal preparation.
• Steps to qualify – Ensure the care is recommended by your physician and provided by a Medicare-certified agency.

Medicare can reduce initial care costs, but it’s not a permanent solution for long-term home care needs.

Medicaid for Low-Income Individuals

Medicaid is a federally and state-funded program designed for low-income individuals, making it one of the most accessible options for home care services. Each state has its own Medicaid eligibility requirements and coverage options for senior care.

• What it covers – Depending on the state, Medicaid may cover in-home care, personal assistance, and even home modifications for accessibility.

• Eligibility requirements – Recipients typically must have very limited income and assets, though certain exemptions apply for married couples.
• Key programs to explore – Many states offer Medicaid waiver programs designed to help seniors afford home- and community-based care instead of institutional care.

Keep in mind the application process can be complex, so working with a Medicaid planner or social worker can be beneficial.

If you have a senior loved one who needs help maintaining a high quality of life while aging in place, reach out to Home Care Assistance, a leading provider of senior home care Philadelphia families can rely on. All of our caregivers are bonded, licensed, and insured, there are no hidden fees, and we never ask our clients to sign long-term contracts.

Long-Term Care Insurance

For families that have prepared ahead, long-term care (LTC) insurance is a significant resource for covering senior home care costs. This type of policy specifically addresses care-related expenses, including both in-home and nursing care.

• How it works – Policyholders pay monthly premiums, and when care is needed, the insurance kicks in to cover eligible services.

• What to know – Policies vary in terms of what they cover, so it’s essential to read the fine print. Some plans cover personal care and homemaking services, while others may have stricter requirements.
• Important tip – It’s best to purchase LTC insurance earlier in life, as costs rise with age and medical conditions.

If your loved one doesn’t already have LTC insurance, this may not be immediately helpful, but it’s worth considering for the future.

If your senior loved one has been diagnosed with a serious condition and needs help with tasks like meal prep, transportation, bathing, and grooming, reach out to Home Care Assistance, a leading provider of in-home care families can trust. We also offer comprehensive care for seniors with dementia, Alzheimer’s, and Parkinson’s.

Benefits for Veterans & Their Spouses

If your loved one is a U.S. veteran or the spouse of a veteran, he or she may be eligible for financial assistance through the Department of Veterans Affairs (VA). The VA offers several programs to support in-home senior care.

• Aid and attendance benefit – This program provides monthly payments to eligible veterans who need help with daily activities like bathing, dressing, or mobility.

• Housebound benefit – For seniors who are mostly confined to their homes due to disabilities, this benefit offers additional financial assistance.
• Application process – Applying for these benefits can be complex, so consider working with a VA-accredited claims agent or advocate.

These programs can significantly reduce the cost burden of senior home care for qualifying families.

Community & Nonprofit Support

If traditional funding sources fall short, community organizations and nonprofits can provide additional support. Many local and national organizations are dedicated to helping seniors access care services.

• Examples of support – Subsidized home care services, grants for home modifications, and meal delivery programs

• Where to start – Check with local senior centers, Area Agencies on Aging (AAAs), and nonprofit organizations like the National Council on Aging (NCOA).
• Crowdfunding – You can use platforms like GoFundMe to raise money for caregiving expenses by sharing your story within your community.

While not a sole funding option, these resources can complement other methods to make home care more affordable.

Aging in place can present a few unique challenges for older adults. Some only require part-time assistance with exercise or meal preparation, while others are living with serious illnesses and benefit more significantly from receiving live-in care. Philadelphia, PA, Home Care Assistance are leaders in the elderly in-home care industry for good reason. We tailor our care plans based on each senior’s individual needs, our caregivers continue to receive updated training in senior care as new developments arise, and we also offer comprehensive care for seniors with Alzheimer’s, dementia, and Parkinson’s. If you need professional home care for your loved one, our Care Managers are just a phone call away. Reach out to Home Care Assistance today at (215) 645-4663.