Factors That Influence the Monthly Cost of 24/7 In-Home Care
It’s no secret that the senior population is on the rise now more than ever! In fact, the U.S. Census Bureau projects that around one in five Americans will be 65 or older by the year 2040. With such an increase comes an increasing need for care, as well. There are countless reasons why home care is the preferred choice, ranging from convenience to comfort. And, of course, cost. But how much does it cost? Fortunately, you’re in the right place to have that question answered! Keep reading to find out more about the cost of round-the-clock care.
Levels of Care
Understandably, the cost of home care often depends on the level of care required. First, it’s important to differentiate between home care and home health care which may be categorized into two roles:
- Homemaker Services
- Home Health Aide
Homemaker Services
Homemaker services help seniors maintain their homes, keep up with their chores, and manage their daily lives. Their duties vary depending on the individual and their specific needs, but homemaker services typically include:
- Light housekeeping
- Grocery shopping
- Errands
- Transportation
- Meal preparation
- Pet and plant care assistance
Average monthly cost: $5,720
Home Health Aide
A home health aide can provide both medical and non-medical support. However, many home health aides are medical professionals, such as RNs and LPNs to Physical Therapists whose duties include more intricate matters such as:
- Wound care
- Medication administration
- Monitoring of vital signs
- Personal care assistance
- Incontinence care
Average monthly cost: $6,292
Many caregivers/health aides operate hourly, with a median wage of $16.12 from a 2023 study from the U.S. Bureau of Labor Statistics. If you aren’t sure whether or not to hire a home health aide or a homemaker, then begin by assessing your needs. Do you have complex health issues that might require more comprehensive care? Or are you more in need of someone to run errands or even provide some much-needed companionship? Consult with your healthcare provider if you need further guidance.
Amount of Care
Once you’ve determined whether a home health aide or homemaker is the right fit, it’s time to figure out the next step of that decision. Specifically, how often you want or need them to be there. Pricing will vary depending on your state. Regardless of whichever form of in-home care you go with it is still critical to determine how much time per week will be necessary. Having a personal care assistant around for a few hours a week to handle the more acute tasks will differ significantly from a full-time registered nurse providing around-the-clock medical assistance. Determining the duration and frequency of in-home care, whether part-time or full-time, will be one of the most important factors of cost.
Keeping it Covered
Paying for all of this in-home service may seem daunting if 24/7 coverage is needed, but just know that you have options. Between Medicare and Medicaid, you have allies in terms of payment coverage. Be mindful of the fact that both may not outright pay for all the care needed, yet they still are here to help. Medicare will not cover homemaker and companion services, so keep that in mind if you’re considering that route. Once confirmed to be homebound by a doctor, health care services and medications are generally covered depending on your plan. Nurses, home health aides, and therapists may be covered with Medicare. Medicaid, on the other hand, varies by state and could pick up where Medicaid is lacking. An example of this could be the coverage of a spouse becoming an in-home caregiver.
But since neither will likely cover all required expenses, other forms of coverage could be available to you to avoid going out of your pockets as much as possible. Some of these options may include:
- Long-Term Care Insurance (LTC)
- Veterans (VA) benefits
- Life Insurance Policies
- Reverse Mortgage Loans
Location, Location, Location
The most vital aspect of all for in-home care costs could very well be location. Not only could this affect coverage options and pay rates, but it could likely be a factor in the availability of staff and supplies in said area. And with a reduction of medical professionals and caretakers at the ready in any given area could mean higher wages. Areas of scarcity like Hawaii or Alaska could result in a high cost factor for care.
However, the costs of living in certain areas could play a role as well. States like Ohio and West Virginia could pale in comparison to California, Washington, or Colorado where higher living costs generate higher wages. While this one may be an element that may be beyond control, it’s still important to look at rates in the area, even if the plan is to move or stay put.
Agencies vs. Private Caregiver
Believe it or not, you can be in control over choosing who is in charge of administering in-home care. This comes in the form of hiring private or independent caregivers as opposed to an agency. This does come with its own set of responsibilities, as it will be on you or the family to oversee the hiring process, training, terms of pay, and more. On the bright side, doing so will save you a decent amount by not paying agency rates and fees.
If 24/7 care is required, however, going through an agency could be more favorable since adding more training and labor to your privately hired caregiver’s agenda could add up. One saving grace between these options could come from using a registry, too. A registry will work in your favor to search for qualified candidates and then typically let you handle the rest. You will have to pay their (finder’s) fee, but you then reap the benefits akin to private caregivers as you will most likely become their employer after the registry’s purpose is served.
Conclusion
If you think staying at home is the right choice, then be mindful of all factors associated with the costs. Look at rates within your area followed by assessing the extensiveness of care that will be needed. You can always find coverage options to assist you, but be detailed in your search as what is covered will vary. Examine all your resources, calculate the costs, and do your research! It might take time and effort, but you truly can never be too conscientious when finding the best possible home care.
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Originally published November 22, 2024
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