For most families, the question isn’t whether home care would help. It’s how to pay for it. The good news is that there’s rarely just one answer. Most families combine several sources, and knowing what each one does (and doesn’t) cover can save you time, stress, and money. This guide lays out how to pay for home care, in plain language, so you can start building a plan that fits your family.
Quick answer: Most non-medical home care is paid for privately, through personal savings, income, or family contributions. Long-term care insurance, Medicaid waiver programs, and veterans’ benefits can help cover the cost for people who qualify. Original Medicare generally does not pay for ongoing non-medical home care.
First, Know What Kind of Care You Need
Before you look at funding, it helps to be clear about the type of care involved, because payers treat them very differently.
- Non-medical home care (also called custodial care or personal care) includes help with bathing, dressing, meals, medication reminders, companionship, light housekeeping, and transportation. This is what Briggs Home Care provides.
- Home health care is skilled, medical care such as nursing or physical therapy, ordered by a doctor and usually short-term.
Many insurance programs pay for home health care but not for ongoing non-medical care. Our article on home care vs. home health care explains the difference in more detail.
Option 1: Private Pay
Private pay is the most common way families cover home care. That can include savings, retirement income, pensions, Social Security, or contributions from adult children. Private pay offers the most flexibility: you choose the provider, the schedule, and the services without waiting on approvals.
To make private pay more manageable, many families start with a smaller number of hours focused on the times help matters most, such as mornings or bath days, then adjust as needs change. For budgeting tips, see understanding in-home care costs and budgeting.
Option 2: Long-Term Care Insurance
Long-term care insurance is designed for exactly this kind of support. Many policies cover in-home care once the policyholder needs help with a certain number of activities of daily living (such as bathing, dressing, or eating) or has a cognitive impairment like dementia.
Policies vary widely, so review the details: the daily or monthly benefit amount, the elimination period (a waiting period before benefits start), the lifetime maximum, and whether the policy requires care from a licensed agency. We explain how to file and what to watch for in using long-term care insurance to pay for in-home care.
Option 3: Medicaid
Medicaid is the largest public payer of long-term care in the United States, and every state offers some form of home and community-based services (HCBS), often through waiver programs. These can cover personal care and other in-home supports for people who meet financial and functional eligibility rules.
Rules, waiting lists, and covered services differ by state, and not every home care agency participates in every program. Learn more in Does Medicaid Cover In-Home Care?.
Option 4: Veterans’ Benefits
Veterans and surviving spouses may qualify for VA benefits that help pay for home care. The best-known is the Aid and Attendance benefit, an add-on to the VA pension for people who need help with daily activities. The VA also offers home care programs through VA health care for eligible veterans.
Applications take documentation and patience, but the support can be significant. A VA-accredited representative can help at no cost. We’ll cover these programs in our upcoming guides to VA Aid and Attendance and other VA home care programs.
Option 5: Medicare and Medicare Advantage
Original Medicare covers short-term, intermittent home health care when a doctor orders it and certain conditions are met. It generally does not cover ongoing custodial care like help with bathing, meals, or companionship when that’s the only care someone needs.
Some Medicare Advantage plans offer limited in-home support as a supplemental benefit. These benefits vary a lot by plan and year, so read the plan details carefully. See Does Medicare Pay for Home Care? for a fuller explanation.
Option 6: Other Resources
Families also use a range of other tools, depending on their situation:
- Life insurance: Some policies allow accelerated death benefits or can be converted to help fund long-term care.
- Home equity: A reverse mortgage or home equity line of credit can turn home value into cash for care.
- Tax benefits: Some home care costs may qualify as deductible medical expenses. See Is Home Care Tax Deductible?.
- Local programs: Area Agencies on Aging often fund limited respite, homemaker services, or caregiver support.
- Family agreements: Siblings sometimes share costs through a written care agreement.
How to Pay for Home Care: Building Your Plan
- Get a clear picture of needs. A free in-home care assessment helps you understand how many hours and what type of help your loved one actually needs.
- List every resource. Gather information on income, savings, insurance policies, veteran status, and home equity.
- Check eligibility early. Medicaid and VA applications can take months. Start the paperwork before the need is urgent.
- Combine sources. Many families use private pay while waiting on benefits, then shift once coverage begins.
- Talk as a family. Agree on who contributes what, and write it down.
- Get expert help. An elder law attorney, financial advisor, or benefits counselor can help you avoid costly mistakes.
Frequently Asked Questions
What is the most common way to pay for home care?
Private pay. Most families use savings, income, or family contributions, sometimes combined with long-term care insurance or veterans’ benefits.
Does health insurance cover in-home caregivers?
Standard health insurance and Original Medicare generally don’t cover ongoing non-medical home care. Long-term care insurance and some Medicaid programs may.
Can I use more than one payment source?
Yes. Combining sources is common, and a home care provider can often help you understand how billing works with insurance or other programs.
How Briggs Home Care Can Help
Understanding cost is part of every free care consultation at Briggs Home Care. Our local teams will walk you through pricing, talk through the options available in your area, and help you build a care plan that fits both your loved one’s needs and your budget. Explore our home care services, then find a location near you or call 1-833-960-CARE (2273).
This article is for general information and isn’t financial, tax, or legal advice. Program rules change, so confirm details with the program or a qualified professional.
Explore More in This Series
This guide is the starting point for our paying for care series. Dive deeper into specific topics:
- Is Home Care Tax Deductible? What Families Should Know
- Using Long-Term Care Insurance to Pay for In-Home Care
- Does Medicaid Cover In-Home Care? Understanding HCBS Waivers
- Can Family Members Get Paid to Be Caregivers?
- Home Care Costs vs. Assisted Living Costs: How to Compare Fairly
- Splitting the Cost of a Parent’s Care Among Siblings
- Paying for Home Care With Life Insurance, Annuities, or a Reverse Mortgage
- Medicare Advantage In-Home Support Benefits: What to Check Before You Enroll
- Does Medicare Pay for Home Care? What Families Need to Know
- VA Aid and Attendance: Helping Veterans Pay for Home Care
- VA Home Care Programs for Veterans: Beyond Aid and Attendance
Trusted outside resource: Medicare.gov
