When chronic health conditions, recovery from an illness, dementia, or even the normal aging process makes it difficult for a senior to live at home safely, home care can provide the supervision and assistance an older adult needs to age in place and carry on daily routines. When comparing care options, many families are concerned about how much home care services cost and what their financial options are for payment. 

 

Most families pay out of pocket for home care services. Possible sources used to cover private pay home care expenses might include individual retirement accounts (IRAs), health savings accounts (HSAs), pensions, investments, annuities, real estate and Social Security benefits.

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Paying with personal funds gives you and your loved one the most flexibility when seeking care services. You can work with your loved one’s doctors and a local home care provider to tailor a care plan to best suit your needs — from meal prep, companionship and light housekeeping to bathing, grooming and feeding. Private pay helps cover additional care services that can supplement the limited services and support covered by other sources like Medicaid as well as the “elimination period” before a long-term care policy begins to pay benefits.

 

Although seniors may be hesitant to use their hard-earned savings or liquidate assets, it is important to consider that properly “spending down” almost all assets is required to qualify for Medicaid. By and large, home care needs grow over time and higher levels of long-term care are increasingly expensive. Unless an aging loved one has amassed significant savings, it is important to consider the possibility that they may outlive their funds and need to apply for Medicaid when creating a long-term financial plan.