Caring for a loved one in an advanced stage of life or facing a terminal illness can be one of the most challenging and emotionally draining responsibilities for any adult child. As a family caregiver, you face complicated decisions every day.

One of the most important is ensuring your loved one receives the support they need. Their quality of life often depends on adequate care, so choosing the right provider is a critical decision you have to make.

Most children default to in-home care, offering older family relatives personalized service in their own homes. While this option is convenient and provides a familiar setting for recovery, price is always a concern. How much does in-home care cost?

This article explores factors influencing in-home care costs. Learn financial planning strategies to ensure your parents receive their much-needed care without creating unnecessary financial stress.

Understanding In-Home Care Costs

Healthcare expenses are a pressing problem among Americans. Due to its increasing price, many can’t afford to pay for their care needs. In New York alone, the median rate for non-medical care is $26 per hour. This number racks up to about $59,000 a year, which is a huge financial responsibility for the middle class. By understanding your options, you can sustain health care for the long term.

Range of services covered under in-home care

What does home care include? It comprises services designed to help your senior parent with their daily activities and medical needs. Know what it covers to understand how much this type of care can set you back in the future.

Assistance with daily activities

The activities of daily living (ADLs) are everyday tasks your senior parents may need support to accomplish. They may have a condition or a physical disability that makes their essential to-dos challenging. ADL assistance includes the following:

• Bathing: Assistance with bathing, which can be difficult or dangerous for people with reduced mobility
• Dressing: Help putting on clothes that some people with arthritis may find complicated to do on their own
• Personal care: Help with grooming, brushing teeth, and maintaining good hygiene
• Mobility: Assistance with walking, moving around the house, or transferring from bed to wheelchair
• Feeding: Food preparation support and assistance with eating

Medical and nursing services

In addition to daily activities, many older adults need ongoing medical care. This type of care tends to be more expensive, involving expert care from specialist doctors, registered nurses, and certified nursing assistants. Typical medical services include the following:

• Vitals monitoring, such as blood pressure and glucose
• Medication administration and management
• Post-operative care and wound supervision
• Physical or respiratory therapies
• Palliative care for those in the final stage of a terminal illness

6 Factors Influencing Home Care Costs

Several factors affect the cost of in-home care. Understanding them is essential to estimate your care expenses and plan accordingly. Below are things that determine how much you’ll be paying for your care provider or caregiver for in-home assistance.

1. Duration and frequency of care

The number of hours or days your loved one needs home support drives care bills up or down. Hiring a caregiver for a few hours daily is much cheaper than enlisting someone for 24-hour help.

Part-time care

This set-up assists for a few hours, generally to help with basic activities such as personal hygiene, meal preparation, or managing medications. It’s ideal for older people who are relatively independent but need minor support. Prices for this typically range from $38 to $42 per hour in major cities in Nevada. Some states may charge more or less. Costs also vary depending on the caregiver’s experience.

Full-time care

Around-the-clock care is significantly steep due to the need for continuous supervision. In this scenario, several caregivers are hired to work in shifts, assisting your loved one 24/7.

The rate may be fixed per day or week, depending on the contract. In 2021, the median cost for home help services was $4,957-$5,148 per month. This figure has increased since as healthcare costs continue to get pricey. Check the latest numbers from your local home care agencies to manage your budget.

Emergency or overnight care

You may need this type of care if an older relative has a sudden stroke or health decline. The complexity of the condition may require overnight monitoring. In such a case, a standby caregiver assists during the night for when your loved one needs assistance. They may need to go to the bathroom or take medications. Overnight care is generally high-priced and is charged by the hour or by shift.

2. Types of care provided

Caregivers can provide both non-medical and skilled care. The services provided affect the care invoice. For instance, home health aides providing basic daily care are more affordable than registered nurses or therapists offering skilled care.

Non-medical caregivers

Caregivers mostly assist with activities of daily living and light housekeeping tasks. They help seniors bathe, prepare food, and run errands for them.

The rate per hour varies depending on factors. This type of care can set you back from $38 to $42 per hour at an assisted home. It reduces to $31 to $34 per hour if you receive care at your residence.

The caregiver’s support is limited to standard services. For example, they can’t administer injectable medicines unless they’ve trained for it. Non-medical care is perfect for older people who are relatively healthy but need assistance in maintaining the upkeep of their homes.

Skilled care caregivers

Medical care, also referred to as home health care, is provided by licensed professionals, such as occupational therapists or registered nurses. Common instances when this care is necessary include:

• Your loved one uses medical equipment at home, like oxygen, feeding tubes, and catheters.
• They have a chronic condition requiring close monitoring, like diabetes or heart disease.
• They got seriously injured and needed in-home rehabilitation therapy.

The rate for skilled services is competitive compared to basic care. It also varies based on what type of professional support you need. For example, the current median pay for occupational therapists is $46.33 per hour. But this can increase based on the level of care your loved one needs. In short, there’s no fixed price tag. You’ll know how much to pay by consulting a local home healthcare agency.

3. Caregiver specializations

Some caregivers pursue specialized training to care for people with Alzheimer’s disease, Parkinson’s, and other chronic conditions. They’re adept at managing the changing behaviors and physical decline associated with complex illnesses.

Care tends to be expensive given that it requires a holistic care approach and skills to ensure the patient’s safety and well-being.

4. Location

Location plays a significant role in the cost of in-home care. Price tags vary dramatically depending on where you live. States with a high cost of living, such as California and New York tend to have higher care service rates. In contrast, rural regions with a cost of living on the lower end of the scale have affordable per-hour in-home care rates.

5. Specific health conditions

The nature of your loved one’s disease, including the severity, also determines how much you pay for care. Those with severe disabilities or terminal illnesses require intensive assistance and, by extension, will set you back at a higher price tag.

6. Additional services and special needs

Additional services add up to the bill and make home care steeper. A few examples of these include:

• Physical therapy or home rehabilitation
• Psychological or emotional support
• Housekeeping or maintenance services

Comparison Of Different Types Of Home Care

Care at home comes in various forms. When considering it, evaluate what setup is the best option for your older relative. Here are your options:

Live-in Caregiver

This approach requires the caregiver to move into your parent’s home. They’ll have their own bed and will remain available around the clock. Its biggest advantage is its convenience. Someone can respond immediately in case of emergency, even in the wee hours of the night.

This model is less expensive than hiring several caregivers rotating in shifts. However, it’s still costly as it requires the care staff to be available 24 hours a day. The caregiver will usually have rest periods during the day, meaning they won’t always be active. For instance, if your loved one naps in the afternoon, they could also take a brief respite.

24-hour care

Around-the-clock care is the best option for those who need constant care and supervision. How does this setup work? Three caregivers divide the workload. One works in the morning, the other starts at midday until early evening, and the last staff checks in overnight. Therefore, someone is always at home to attend to your senior mom or dad.

This service is expensive. Nevertheless, it guarantees uninterrupted care, which is ideal for people who cannot be left alone for health or safety reasons.

Specialized care

This option suits a loved one requiring medical care, such as home nursing, physical therapy, or palliative care. Such care demands professional expertise, so a licensed nurse or health professional will be on-site. Support provided can include everything from managing medication to assistance with medical equipment.

Cost Breakdown of 24/7 In-Home Care

How much does 24-hour home care cost per month? What is the going rate for hiring a 24-hour caregiver? The cost of 24/7 in-home care changes, depending on location, the caregiver’s level of experience, and your loved one’s care needs.

On average, monthly costs for in-home care are $5,720 for non-medical assistance and $6,292 for services that may include minor skilled services. The care fees can increase if you hire a private nurse to provide advanced care services or a physical therapist for home rehabilitation.

In some states with a higher cost of living, care expenses often command hefty price tags. Conversely, areas with lower living costs may offer more affordable options.

States With the Most Expensive Care per Hour Costs

Here’s an overview of some of the states where the median care cost per hour is the most expensive.

• Minnesota: $33 per hour
• Washington: $31.63
• Rhode Island: $31 per hour
• Hawaii: $30 per hour
• Massachusetts: $29.63 per hour
• New Hampshire: $29.25 per hour
• Wyoming: $29.12 per hour
• California: $29 per hour
• North Dakota: $29 per hour
• Oregon: $29 per hour

Note that prices are influenced by local caregiver availability, regional demand, and individual care needs​.

Additional Costs to Consider With 24-Hour Care

In addition to the caregiver fees, you should take into account supplemental expenses when planning for your loved one’s long-term care. These include:

• Home medical equipment: They may require a hospital bed, wheelchair, or oxygen device while recuperating at home.
• Home adaptations: You may need to modify your home to make it safer for your loved one when navigating. Installing ramps, handrails, or special showers may be necessary.
• Treatments and medications: The costs of medications and specialized treatments can take a significant cut out of your care budget.

6 Tips to Manage and Reduce In-Home Care Expenses

The financial burden of long-term care can be overwhelming. Thankfully, there are ways to reduce out-of-pocket costs without compromising the quality of care. Here are some tips to keep in mind:

1. Hire a private caregiver

Instead of using a care agency, many families choose to hire a private healthcare provider directly. Doing so cuts down the administrative costs associated with agencies. If you decide to go this route, consider legal aspects, such as employment contracts, insurance, and background checks.

While this option translates to savings, you may get in trouble if you don’t know the caregiver well. The advantage of agencies is they do background checks for you, ensuring someone is qualified and licensed before hiring them.

2. Explore flexible schedules

Another option is to hire caregivers for shorter shifts. This choice is ideal for people who require assistance with daily activities but can be alone for certain hours of the day, thereby decreasing the total cost.

3. Seek financial assistance

State and federal assistance programs, such as Medicare or Medicaid, can help cover part of the costs. The caveat is your loved one must meet eligibility requirements. Additionally, some states offer Medicaid waiver programs that provide additional funds, allowing your parents to receive care at home instead of in long-term care facilities.

4. Use technology to reduce visits

With the rise of telemedicine and remote monitoring, you can help minimize the need for in-person visits for certain services to save money. For example, instead of traveling for a checkup, do it virtually. It’s more affordable and convenient this way.

5. Consider volunteer programs

In some communities, volunteer programs or mutual support initiatives offer basic assistance. Someone may be available to provide companionship or transportation assistance for free or a minimal fee.

6. Research non-profit organizations

Some foundations offer financial support or free services for older adults or terminally ill people. These resources can alleviate some of the financial burden and ensure your loved one receives care.

Implementing these strategies not only helps bring down care costs but also improves the quality of care. More importantly, it ensures sustainability for the long term.

6 Financial Options for In-Home Care

Unless you’re wealthy or have multiple health insurance policies, paying for 24-hour care for months depletes your finances. Some children even spend their lifetime savings and go into debt. Fortunately, there are several sources of funding to alleviate the economic burden of in-home care. These include:

1. Government assistance programs

Depending on the state and your loved one’s income, you may qualify for government programs and receive financial assistance. Medicare and Medicaid are two federal initiatives covering home healthcare services. However, benefits vary and generally have limitations for non-medical or long-term care.

2. Private long-term care insurance

This type of coverage is specifically designed for long-term care, whether at home or in a specialized facility. If your loved one already has this, review the policy and how you can use it.

3. Veterans Affairs

If your parents have served in the U.S. Armed Forces, they might be eligible for financial assistance through the VA benefits. It can help you pay for home care and long-term support services.

4. Medicaid Waivers

Many older adults with low incomes rely on Medicaid to fund home care. The coverage varies from state to state, and in some cases, only covers medical care and not personal care services.

Some states have home and community-based service waivers, which are programs that allow older adults to receive home care at home or community, instead of in a care facility. They help cover assistance with daily activities and some medical care.

5. Private insurance options for in-home care

Some private insurance plans include coverage for home care. However, the amount and type of benefits depend on the plan. Some cover specific medical care, while others offer non-medical support, such as personal care and housekeeping.

Review your loved one’s insurance policy annually for changes in coverage. Consult with the provider to better understand their benefits and your out-of-pocket share in case you use it.

6. Other Options for Financing In-Home Care

If your senior parent doesn’t qualify for government programs or have long-term care insurance, here are other ways to finance care.

• Long-term care loans: Some banks and credit unions offer loans designed to help families pay for long-term care costs.
• Selling assets: In some cases, families choose to sell properties or assets to pool funds to settle outstanding care bills.
• Family caregivers: Some adult children choose to care for their parents so they don’t have to pay for a professional. In some states, family caregivers may even receive compensation through Medicaid or state programs.

Regional Variances in In-Home Care Costs

One of the biggest variables in-home care cost is location. The fees you’ll have to pay differ, depending on which city you live in.

For example, care prices are steep in metropolitan areas like New York or Los Angeles. Factors like cost of living, high demand for services, and limited availability of caregivers drive the fees to the roof.

Meanwhile, care is more affordable in rural areas or states with a lower cost of living. The downside is there may be fewer available trained caregivers. Most move to the cities to get higher pay. Therefore, the lack of care providers can limit your options.

Factors influencing these regional variations

In addition to the cost of living, other reasons affecting the difference in home care prices are:

• Availability of qualified caregivers: In areas shortage of caregivers is apparent, prices tend to be higher due to demand.
• State regulations: Some states have stricter regulations on caregiver requirements, which can increase professional fees.
• Competition between agencies: In locations where the competition between home care agencies is tight, prices may be more expensive.

Strategies for managing care expenses in high-cost areas

One simple solution is to relocate to afford care. However, not everyone has this option. If you’re one of those who can’t possibly move out of state, here are some tips for you.

• Look for independent caregivers: Hire caregivers directly, instead of through an agency, to reduce costs. Get referrals from friends or your primary doctor to ensure you onboard someone qualified and with a good background record.
• Explore local assistance programs: Some states offer programs to help families pay for home care. Contact your local Area Agencies on Aging for more information.
• Share costs with other family members: If it becomes too expensive, ask other family members to contribute financially. Divide costs between siblings to alleviate the money burden.

Planning for In-Home Care Costs

You’ll be surprised how having a plan can save you from financial distress. While it’s unpredictable when your loved one needs care, one sure thing is they’ll need it in the future. Their needs will increase as their health declines. Certain diseases like Alzheimer’s, Parkinson’s, or heart failure progress, making care more costly.

By planning, you can prepare for unexpected emergencies and minimize their impact on your well-being and other family members. The benefits of long-term planning include:

Preventing debt

Many families are forced to take on debt because they overlook financial planning. Some sell their homes or seek loans to cover the rising care costs. Anticipating these expenses can prevent stressful situations and preserve your family assets.

Maintaining a high quality of life

The lack of financial resources can limit your family’s care options, consequently contributing to poor quality of life. Planning allows access to higher-quality support, including trained caregivers or specialized medical care.

Reducing emotional stress

Money problems have always been a source of distress. Anticipating the cost of long-term care reduces the emotional and psychological stress that comes with all the accumulating expenses. It makes you a more financially responsible person.

Steps for Long-Term Financial Planning

You can approach financial planning for home care in various ways. The important thing is you know the tools and resources you can tap to address your needs. Here are some things you can do.

1. Consult a specialized financial advisor

An experienced financial planner can be a valuable support for exploring your options. They’re professionals who can help you project future home care costs, based on your loved one’s health situation and current market rates. They can also provide information on assistance programs.

Where do you find one? A quick search online will give names to reach out. Alternatively, you can ask friends, colleagues, or even your primary doctor for a referral. One important thing is to pick someone who specializes in senior care.

Those experienced in the industry are the best people to ask about state or federal benefits and financing options. Hiring someone specializing in senior care benefits has the following upsides:

• Personalized advice: They can help conjure a plan tailored to your family’s needs and financial ability. Therefore, you can rest assured the solution is specific to your circumstance and not a one-size-fits-all workaround.
• Access to assistance programs and additional resources: They can assist you navigate Medicaid, Medicare, Veterans Affairs, and other programs to downgrade your care expenses. As a result, you save precious time and effort from doing these things on your own.
• Teach you savings strategies: A senior care advisor can help you stretch every dollar you pay for health care. Additionally, they can provide creative solutions for long-term care savings.

 

2. Evaluate long-term care insurance options

Long-term care insurance is a huge help when your loved one retires and needs in-home care. It’s specifically designed to cover costs associated with extended stays at assisted living or nursing homes. Monthly premiums can be affordable if you or a loved one invests in it early. You can later withdraw it to pay for care services. Research different insurance providers to know which one has the best offer for premium coverage.

3. Create an emergency fund

Creating a contingency fund that covers a few months to a year of in-home care can be a lifesaver. This financial buffer lets you pay for unexpected expenses, such as if your mom or dad gets admitted due to an injury. It gives you more flexibility in care decisions by expanding your options. With it, you can provide for your loved one’s immediate care needs regardless of the circumstances.

Developing a Personalized Care Plan That Fits Your Budget

Each older person’s care needs vary drastically. Some may require minor assistance with daily activities, while others need 24-hour skilled care.

For this reason, it’s essential to craft a care plan that considers your loved one’s current health situation but is also adjustable to their future needs. A good care plan aligns with your family’s budget.

The first step is to realistically assess your loved one’s existing needs. While it’s difficult to anticipate how these needs will evolve, care demands tend to upgrade, especially for progressive conditions. Here are a couple of things to consider.

Current level of care needs

Does your loved one need assistance with bathing, dressing, and cooking? Do they require constant medical supervision? The higher their needs, the more costly the per-hour rate.

Estimated future needs

Chronic or degenerative diseases tend to worsen over time. Developing a plan that factors in things like skilled nursing or palliative care allows you to prepare most practically.

The next step is to modify the care plan based on your budget. Here are your options to reduce costs.

• Employ independent caregivers: This option is economical as it eliminates the administrative costs agencies impose when recruiting a care staff. You can expect to pay between $14-$28 per hour, although some states pay independent caregivers a minimum federal wage of $7.25 per hour. This has its downsides as you become an employer and are legally responsible for the caregiver which can be challenging.
• Choose flexible schedules: If 24-hour care isn’t absolutely necessary, you can hire a care staff at hours when they’re needed, and take up the rest hours. Doing this can curb expenditure while still providing quality care.
• Look for local assistance programs or subsidies: Some states have assistance programs for older adults. These initiatives provide funds to cover a portion of the care expenses. Some organizations may offer free services. Research what’s available in your area. Don’t hesitate to take advantage of these as they can help sustain long-term care.

Seeking Professional Financial Planning Advice

As discussed previously, It can feel overwhelming if you do it alone. Consulting an expert is highly recommended when planning for in-home care costs; they can make the entire process less stressful through their insights.

Don’t Hesitate to Ask For Help

Remember you’re not alone in this challenge. Available resources and programs can help you navigate the financial aspect of home care. Hire a financial advisor to help you plan for future care.

24/7 in-home care services can be costly. However, you can explore options for flexible care, or become a family caregiver to scale down the overall expenses.

Amy’s Eden Senior Care has assisted living homes where your loved ones can receive around-the-clock care. We can also have our caregivers provide care in your loved one’s home. Regardless of their level of care needs, they’ll be in good hands with our 24-hour caregivers who are trained to provide exceptional care.

Amy’s Eden Senior Care gives your aging parents the freedom and independence to lead a quality life. Contact us today to get started.