Can You Afford an In-Home Care Worker?

If your loved one prefers to age in place but you can’t provide them the extra assistance they need, hiring an in-home caregiver is an option. There are several different options for in-home care, depending on the needs of your elderly family member. Hiring a caregiver through 1+1 Cares allows your loved one to get help with transportation, housekeeping, etc. However, caregiving costs can vary depending on the service you’re looking for. According to Genworth’s 2020 survey, the average bill for long-term care is $4,576 a month. Before choosing in-home care for your loved one, it’s necessary to look over ways to afford a caregiver.

Pay out of Pocket for In-Home Care Worker

A handful of people private pay for caregiving services by forming a care budget from multiple sources:

• Investment
• Savings
• Annuities
• Life insurance policies which can cover in-home care expenses through cash value or an accelerated death benefit
• Borrowing by taking out a home equity loan, reverse mortgage, etc.

Government Help

Don’t fret if you can’t afford a caregiver on your own. You can still receive help from government programs if you don’t have insurance coverage for long-term care or can’t afford to use your existing financial resources. Start by looking on EldercareLocator to find your local Area Agency on Aging. AAA offices have resources on home health care and are the gateway to Medicaid.

Medicaid: The joint federal-state program can pay for in-home care, nursing home care, and some residential and assisted living care. Over half of Medicaid’s spendings has been toward home- and community-based services. Eligibility for coverage of in-home care is less limited than Medicare, but it can vary because each program is run differently depending on the state.

Medicare: The national health insurance program covers all costs of medically necessary home care on a limited basis for those who cannot leave their home without aid. Original Medicare can cover skilled nursing care, physical and speech therapy, and routine home care only on a part-time or intermittent basis. However, Medicare Advantage (MA) plans have the option to provide broader and longer-term coverage for in-home care and other services.

Veterans programs: Eligible veterans can qualify for home health care coverage from one of these VA programs: Housebound benefits, Aid and Attendance benefits, Veteran Directed Care and Homemaker and Home Health Aide Care.

Taxes: You may qualify for a federal tax deduction if you’re hiring and paying a caregiver for medical reasons. You can also claim your loved one as a dependent and get a tax break if you pay half their financial support, they live with you, and you meet their other criteria.

PACE

Programs of All-Inclusive Care for the Elderly (PACE) is a Medicare and Medicaid initiative focused on keeping the frail elderly out of nursing homes. PACE covers in-home care among other services such as training, support, and respite for family caregivers. Eligibility requires the recipient to be:

• 55 or older
• A resident of an area with a PACE organization
• In need of nursing home-level care as certified through your state
• Able to live safely in the community with help from PACE

Luckily, in-home care has a variety of options for services and ways to pay. Discuss and plan what choice works best for you and your loved one.

1+1 Cares is a referral agency that works for clients and caregivers. We match caregivers with clients and inform them of your requirements. We work for you so you and your loved one can have a safe, enjoyable caregiving experience.