6 Ways to Cover the Cost of In-Home Care
When an aging parent or loved one begins to need help at home, one of the first questions families often ask is: How do we pay for home care?
The cost of in-home care does not always have to come entirely out of pocket. Depending on your loved one's circumstances, there may be several ways to help pay for home care, including long-term care insurance, veterans benefits, North Carolina Medicaid, Medicare's GUIDE program, and specialized care annuities.
Understanding these options can help families build a more sustainable care plan and make it possible for an older adult to remain safely and independently at home.
Here are six common ways families may pay for in-home care.
1. Private Pay for Home Care
Private pay is one of the most common and flexible ways to pay for in-home care. Families may use retirement income, Social Security, pensions, savings, investments, or financial assistance from family members.
The primary advantage of private-pay home care is flexibility. Families can generally choose the schedule, services, and amount of care that best fit their loved one's needs without waiting for an insurance company or government program to authorize services.
Care can also be adjusted over time. A family may begin with a few visits each week for companionship, transportation, meal preparation, or personal care and add additional hours as a loved one's needs change.
2. Long-Term Care Insurance for Home Care
If your loved one has a long-term care insurance policy, it may provide significant benefits toward the cost of in-home care.
Depending on the policy, benefits may help pay for personal care assistance with activities such as bathing, dressing, toileting, mobility, transfers, meal preparation, supervision, and care related to Alzheimer's disease or another form of dementia.
Coverage varies considerably between policies. Some have elimination periods, daily or monthly benefit limits, maximum benefit periods, or specific requirements related to activities of daily living or cognitive impairment.
Families should locate and review a long-term care insurance policy as early as possible rather than waiting until substantial care expenses have already accumulated.
Could Your Long-Term Care Insurance Qualify You for Discounted Home Care?
Senior Helpers is a part of the CareScout Quality Network, which may provide eligible policyholders with discounted home care rates of up to 20%.
Eligible policies may include coverage from companies such as Genworth, John Hancock, MetLife, and Unum.
Eligibility and discounts vary by policy, so families should verify their individual CareScout network benefits.
3. Veterans Benefits for In-Home Care
Veterans and their families may have access to several VA programs that can help provide or pay for care at home. The right option depends on the veteran's health needs, VA enrollment, service-connected status, location, and the specific program's eligibility requirements.
One of the most common is the VA's Homemaker and Home Health Aide (H/HHA) program, which can authorize a trained caregiver from a VA-contracted home care agency to assist with activities such as bathing, dressing, grooming, toileting, mobility, and other daily needs. The VA also offers Respite Care, which can provide temporary relief for family caregivers.
Some wartime veterans and surviving spouses who receive a VA pension may also qualify for Aid and Attendance, an additional monthly pension benefit for individuals who need assistance with everyday activities such as bathing, dressing, or eating. Those funds can help families offset the cost of privately arranged care.
Because multiple VA benefits may sometimes be used as part of a broader care plan, veterans and their families should speak with their VA care team, VA social worker, or an accredited Veterans Service Officer to explore the programs for which they may qualify.
4. Medicaid Home Care in North Carolina
For people who meet financial and medical eligibility requirements, North Carolina Medicaid may help pay for in-home personal care.
North Carolina's Personal Care Services (PCS) program can provide assistance with activities of daily living such as eating, dressing, bathing, toileting, and mobility for qualifying Medicaid beneficiaries.
Another option is the Community Alternatives Program for Disabled Adults (CAP/DA). CAP/DA is designed to help qualifying adults with significant health needs receive services at home rather than moving into a nursing facility. Covered services can include in-home aide services, personal assistance, respite care, meal services, equipment, and other community-based supports.
Because Medicaid eligibility and authorization requirements can be complex, families should determine which program best fits their loved one's financial and care needs.
5. Medicare GUIDE Program
Families caring for someone with Alzheimer's disease or another form of dementia should ask about Medicare's GUIDE program — Guiding an Improved Dementia Experience.
One of GUIDE's most valuable benefits is respite care for eligible beneficiaries, which can include care provided in the person's home while a family caregiver takes a much-needed break.
CMS currently provides qualifying GUIDE participants with up to 80 hours of respite care. GUIDE also offers dementia care coordination, caregiver education, 24/7 support, and connections to community resources.
For families already providing significant unpaid dementia care, GUIDE may provide an important source of additional in-home support.
6. Immediate Care Plans and Care Annuities
For families already paying substantial long-term care expenses, an Immediate Care Plan, sometimes called an immediate needs annuity or impaired-risk annuity, may provide another way to fund home care.
Unlike traditional long-term care insurance, an Immediate Care Plan is designed for someone who already needs care. A lump-sum premium is paid to an insurance company in exchange for guaranteed regular income that can help cover care expenses for the remainder of the person's life.
Because pricing considers the individual's health and current care needs, someone with significant physical or cognitive impairment may receive more favorable pricing than with a traditional income annuity.
Immediate Care Plans are not appropriate for everyone, particularly someone considering Medicaid eligibility, so families should discuss the financial, tax, estate, and Medicaid implications with qualified professionals before purchasing one.
Can You Combine Different Ways to Pay for Home Care?
Yes! Many families use more than one source of funding for in-home care.
For example, a family might combine:
- Long-term care insurance with personal funds
- VA-authorized care with additional private-pay home care
- Medicaid-authorized services with other eligible resources
- Medicare GUIDE respite with VA-authorized care
- Retirement income with payments from an Immediate Care Plan
Rather than assuming one program must pay for everything, it can be helpful to identify all available benefits and financial resources and determine how they can work together.
Need Help Paying for Home Care in Raleigh, Cary, or Apex?
Understanding how to pay for home care in North Carolina can feel overwhelming, especially when you're simultaneously trying to determine what type of care your loved one needs.
At Senior Helpers, we help families throughout Cary, Raleigh, and Apex understand their home-care needs and explore potential resources for paying for care.
Depending on your family's circumstances, those resources may include private pay, long-term care insurance, CareScout benefits, veterans programs, North Carolina Medicaid, Medicare GUIDE respite services, care annuities, or a combination of funding sources.
You don't have to determine which programs apply to your family on your own. Senior Helpers can help identify options your loved one may qualify for and connect you with the appropriate agencies, benefit specialists, Veterans Service Officers, insurance resources, and other professionals who can help you understand eligibility and navigate the enrollment or application process.
Our goal is to help you make sense of the options, connect with the right resources, and build a care plan that allows your loved one to remain safe, comfortable, independent, and connected in the place they call home.
Have questions about the cost of home care or how to pay for in-home care? Contact us to speak with our team about your family's needs and the options that may be available.