/ BLOG

Paying for home health care – your options, strategies for reducing costs, and more!

Nov 22, 2018 · 8 minutes to read

Wondering how to pay for home health care? Home health care and home health aide can be quite expensive. Even if you or a loved one only hire a home health aide for part-time care for basic things – like transportation, mobility and personal care – the costs can mount up quickly.

So, in this article, we’ll be taking a look at some of the ways you can reduce the cost of home health care, and make sure you can pay for a professional home health aide. Read on and learn more about how to pay for home health care for the elderly, or for a loved one with disabilities.

How to Get Help Paying For Home Health Care

There are many ways to get help for paying for home health care, from insurances to charities, finding a lower-cost service provider and more. In the next section of our guide, we’ll discuss all of your options for getting assistance paying for home health care.

First, however, we’ll be taking a look at the cost of home health aide, how much most health care agencies charge for their services, and the average cost of at-home health care on an annual basis.

What Is Home Health Aide?

Home health aide is a service that is usually provided by a dedicated home health care agency. These agencies hire a number of home health “aides”, who can assist you or your loved one with everyday tasks, such as:

  • Transportation (such as to doctor’s appointments)
  • Personal care (bathing, grooming, eating, etc)
  • Cleaning and keeping the home safe

A home health aide will, essentially, perform all of the tasks that you or a loved one needs in order to live a safe, happy life, and age in place.

How Much Do Home Health Care Agencies Charge?

How much should you be paying for home health care services? This depends on a multitude of factors, but most certified home health aides will cost about $20 per hour, though some experienced or specialized providers may charge more.

Your location is also a big factor in determining the market rate for home health care agencies. For example, in Alaska, home health care agencies may charge up to $35 per hour, but in Kentucky, the cost could be less than $20 per hour.

As a rule of thumb, though, you should anticipate spending at least $20-$40 per hour for at-home care.

Any company who offers a much lower rate for their services, compared to the average in your area, may not be properly licensed and certified. They may even lack Home Health Care provider insurance, which could put your loved ones at risk, should something go wrong while your health care aide is providing care to your loved ones.

Average Healthcare Cost Per Year

How much will you be paying for home health care services per year? A number of different factors can influence this – such as how many home health aides you employ, the hours they work, and the special needs of an elderly relative or loved one.

However, according to Care.com, the average salary of a home health aide is $19 per hour. According to Senior Advisor, you’ll pay about $45,000 for a full-time home health aide. For a part-time aide (20 hours per week) you’ll pay about half that sum. This may vary based upon the state in which you live, and many other factors.

This may seem expensive, but it’s still cheaper than a nursing home or assisted living center, which can cost up to $90,000 per year.

For more information about the cost of home care, you can take a look at this blog post, and get further details about the average salary range of a home health aide, and other helpful information.

Assistance Paying For Home Health Care

Most people don’t have the means to simply pay the high costs of home health care out of pocket without draining their savings.

Need help paying for home health care services? Not sure where to find the money to afford a full-time – or even a part-time – home health aide? The good news is that there are a few options you might be able to use in order to get the care you or a loved one needs.

Life Insurance Conversion

When paying for home health care services, elderly individuals may have the option of life insurance conversion.

A life insurance conversion is used to turn a term life insurance policy – which only lasts for a certain number of years – to a permanent, whole life policy or universal life insurance policy.

This is usually cheaper than purchasing a new term life insurance policy, and allows those who are older or disabled to maintain their life insurance coverage – without having to go through another physical exam.

A life insurance conversion ensures that, once a loved one does pass, their beneficiaries will get a sum of money that can be used to pay down any outstanding medical debt incurred by long-term care.

Paying A Family Member For Home Health Care

This is often a great way to save money on home health care. A family member is the ideal person to care for a loved one – particularly a close relative.

If you have a family member who is open to the idea, you could pay them an hourly wage – and have them live with your loved one – in order to provide them with 24/7 care. This is usually much cheaper than hiring a professional.

In addition, you or your loved one can usually write off paying family for home health care taxes, ensuring a lower tax bill. It’s a win-win situation!

Government Programs To Assist People In Paying For Home Health Care

If you are having trouble paying for elder home health care, you may be eligible for government subsidies and programs to help you or your loved one get the assistance they need to age in place. For example, low or middle-income families may qualify for Medicaid coverage.

Here are a few helpful resources that can help you understand what programs are available in your area:

After you’ve viewed these resources, you may be able to get most – or all – of your loved one’s care covered, depending on your own financial situation and their age, disabilities, or status as a veteran.

Home Health Aide Insurance

Long-term care insurance, also sometimes called Home Health Aide insurance, may be a viable option if your loved one is still in good health, and does not yet need at-home care. Long-term care insurance can be quite expensive, but if it’s purchased while the policyholder is in relatively good health, it can be much cheaper than paying for home health care out of pocket. For more information about long term health insurance, this article from NerdWallet is a helpful resource.

Reverse Mortgages

A reverse mortgage allows an older individual to convert their home’s equity into a lump sum payment, and stay in their home. This allows for access to quite a bit of money, which can be used to pay for home health care. The home will, eventually, become the property of the lender. However, in most cases, this does not occur until the death of the current resident.

The primary benefit of a reverse mortgage is that it allows an older individual to access the money in their home – just like they would if they sold it – but remain in place, without the stress of moving to another area, or an assisted-living facility.

In some cases, a reverse mortgage may be the best option for you. However, selling the home and moving yourself or your loved one into a new, smaller home – or an assisted living facility – may be a better option, in some cases.

Loans

While it’s not ideal, it is possible to take out loans to cover the long-term care of a loved one. There are a number of different specialized loan products out there which can be used to cover the cost of home care, skilled nursing facilities, and other such assisted living costs.

However, this can lead to a high debt load for either you, or your loved one. This can result in the loss of most of their estate to debtors once they pass – and, if you take out a loan to pay for your loved one’s care, you’ll still be responsible for paying it off once they have passed.

For this reason, loans should be your last resort. Look into all of the other above options before you take out a loan for at-home care.

Looking For Affordable Home Health Care? Follow This Guide

If you need to reduce the costs of home health care for you or a loved one, this guide is sure to help. For more information and tips for guiding your loved one’s long-term care, please take a look at our blog, and get even more information on the subject!

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

So very easy. What a great service.
Cherice Williams is the best and very easy to talk to 😊
The process was easy to maneuver.
Good service
Jennifer was amazing, informative and guided me to exactly what was needed to cover my business. Highly recommend.
First of all the agent I spoke with was very kind and helpful. Her name is Andrea. I appreciate the easy and quick online application to purchase my insurance.
I worked with Amy on getting professional insurance and she was fantastic! Some of the best customer service I’ve experienced in a long time. She was diligent and supportive, but never pushy.
The process was smooth and everyone answered questions along the way as needed. Andrea’s follow-up was excellent. Thank you!
Jen was awesome
I have been with Bizinsure for many years and they are always up to date with the latest policy information and the most competitive rates!
My interaction with the agent was very pleasant and she answered my questions. She also responded very quickly when I had questions.
BizInsure understood exactly what I needed and provided an affordable quote. The process was easy and I'm glad I used their services!
Our company has been with BizInsure since 2020. we are very happy with the service they provide.
Just started but the process was easy. Agent was kind and the price was great.I will see how the service is going forward, but starting was very easy and inexpensive.
Customer service was great! I got the help I needed!
Super A rated and affordable coverage.
Dina and Ashleih were so helpful! They made our package work for us. Grateful for the quick service.
I want to thank you for making my insurance search so simple and efficient. I also appreciated the easy communication options, which helped me make the right purchase decision. I'm really grateful for your company's support!.
Jenifer S. was the agent that I worked withi to secure general liability insurance. She was very knowledgeable, helpful and worked diligently to ensure that.my coverage needs were met and for a great price. I would definitely recommend her to others as she was a pleasure to work with.
The agent was very knowledgeable and was very quick in handling my request.
Good customer service
Fast friendly professional service
Jennifer was fabulous. Quick & easy quote for GL/PL coverage and saved me money over previous policy. My wife referred me - she's always right!!
Representative was very kind, helpful, and educated me well. I especially appreciate their professionalism and patience.
Been with this company for about 4 years. They have provided me with excellent coverage, user-friendly technology and very low rate. As an accountant, they are my first choice for my small business clients.
Absolutely the easiest, absolutely the fastest, the best I can tell the lowest cost. For many businesses, Insurance is a dirty word, because it's complicated and we're actually so busy minding our business that when complicated insurance issues get in the way, it slows us down. But not with these guys. Biz Insure LLC has figured it out and thank goodness they have...
Thanks, you for your service
I want to say thank you for all the hard work the agent put in with me. She was glad to hear from me. Very pleasant to deal with and solved my needs
Thank you for your professionalism and patience and helpfulness with my insurance needs for my new business. Thank you, Amy Raley as well for all of your help - you are sincerely appreciated and you are an asset to BizInsure LLC!
I have been using Bizinsure for several years and find the ease of renewing as well as generating additional insured certificates to be easy and useful, especially as a sole prop. thank you
Agent was precise and clear with explanation. Getting a quote was fast and easy. Thank you
Easy to renew Policy
BizInsures insurance is easy and affordable. Employees are well courteous and professional.
js_loader
Google Rating
4.7
Based on 368 reviews
×
js_loader





    This will close in 0 seconds