Page Reviewed / Updated – October 11th, 2021

Older Americans who choose to remain in their homes may one day need caregiver services. Senior home caregivers assist with personal care, everyday living and household chores such as cooking and cleaning. While some older adults may have already purchased insurance for long-term care at home, many seniors wonder how to pay for care at home. Several options provide resources for home care, including private pay, long-term care insurance and government programs.

Often, elderly adults rely on family members, friends or volunteers. However, these options may not provide a lasting solution. Family caregiver burnout is a common issue when combined with home needs, jobs, younger children to care for and, at times, their own medical issues. Knowing the options for senior care at home before the need arises makes the transition easier and more cost-effective.

Options to Pay for Senior Care at Home

The following options provide resources concerning paying for senior care at home.

Private Pay

Some seniors have personal savings readily available to pay for senior home care. These options may include investments, savings or liquid assets. Possessions no longer needed, such as vacation homes, land, vehicles, boats or businesses, can be a viable source to pay for home care. A senior’s main home can also be a financial source. Reverse mortgages are cash loans taken against the home’s equity. The money does not have to be paid off until the borrower passes or moves out of the home for one full year. The Home Equity Conversion Mortgage (HECM), insured by the United States Federal Government, is available only from an FHA-approved lender.

Private insurance

Long-term care insurance pays for costs of care not covered by health insurance, including care needed for seniors who have Alzheimer’s disease, a disability inhibiting their ability to perform daily personal care, or a chronic medical condition. While most long-term care insurance policies cover home care, it’s essential to know before purchasing such insurance.

Government Programs

Federal and state government programs for senior care at home help pay for healthcare costs. The following services are available for seniors.

Centers for Medicare & Medicaid Services – The Centers for Medicare & Medicaid Services (CMS) offer several programs that vary from state to state. The organization coordinates accessible and affordable resources with Medicaid, Medicare and Health Insurance Exchanges.

Program of All-Inclusive Care for the Elderly(PACE)PACE is a Medicare program that covers medical and social service expenses for adults who remain at home but require the type of care given in a nursing home. The program exists to allow adults to remain at home instead of moving to a long-term care facility. PACE is not available in all states.

State Health Insurance Assistance Program (SHIP) – The SHIP program is a national program providing counseling, resources and assistance to adults on Medicare, Medicaid and Medicare supplemental insurance (Medigap).