What Is the Cost of Home Health Care?

(Dmytro Zinkevych/Shutterstock)

Aging in place is the hope of most seniors. They want to stay home and maintain their independence. A 2018 AARP study found 76 percent of Americans over 50 wanted to remain in their home as long as possible.

But what if help is needed to age in place? Some seniors may need home health care. And the big question is how much will this cost? Does Medicare provide any coverage for home health care? Depending on where you live in the country, staying at home may be a pricey proposition.

Types of Home Health Care Determines Cost

There are two types of home health care services. These are homemaker services and health aide services.

A homemaker cleans, does laundry, and prepares meals. They take care of tasks around the house that the seniors no longer can.

Home health aides assist with activities of daily living, including bathing and eating.

Both services allow a senior to live independently, but they have different cost structures.

How Do Agencies Determine Cost?

Most agencies charge by the hour, but some have discounted rates for monthly contracts. Some factors that go into pricing include geographic location, level of care, and licensing requirements.

The industry standard for home health care is 44 hours a week. But that’s not required. You choose how many hours a week you want.

There was a 5.39 percent increase in the cost between 2004 and 2021. Between 2020 and 2021, the cost shot up 10.6 percent. But this could have been due to the pandemic.

The bottom line is that the cost of home health care is rising.

Average Cost of Home Health Care

In 2021, the national average for hourly homemaker services was $26. By 2031, this cost is expected to be around $35. A home health aide in 2021 ran $27 and is expected to increase to approximately $37 by 2031.

But that’s the national average. Depending on your state and city, you could be paying more or less. For example, these states vary from the national average.

In 2021, these states’ hourly cost for a home health aide was:

• San Francisco, California—$32
• New York, New York—$30
• Miami, Florida—$23
• Chicago, Illinois—$30
• Boston, Massachusetts—$32.75
• Charleston, West Virginia—$23.50
• Philadelphia, Pennsylvania—$28

Except for Charleston and Miami, all these cities were above the national average. If the trend continues, these states will see the expected increases over the next ten years.

What Does Medicare Cover for Home Health Care?

There is limited coverage for home health care from Medicare. Covered home health services include:

• medically necessary part-time or intermittent skilled nursing care;
• occupational therapy;
• speech-language pathology services;
• medical social services;
• part-time or intermittent home care if you’re also receiving skilled nursing care at the same time as skilled nursing care;
• and some injectables and medical supplies.

Note the main exception to home health care is that it must be accompanied by skilled nursing care.

And although Medicare may pay for a home health aide under some circumstances, it will not pay for homemaker services.

There are other restrictions; for example, you must be homebound, a health care provider must certify this, and the agency used must be Medicare-certified. But for details, consult this Medicare document.

You are not eligible for Medicare coverage if health services are not “intermittent.” That means there’s a time limit. One restriction allows only eight hours of care daily for up to 21 days. Medicare doesn’t cover home health care after 21 days. But under exceptional circumstances, Medicare may extend this period up to three weeks.

If it’s expected that you’ll need more than this, you won’t qualify for home health care.

The argument is that if you need more than 21 days, you should be in long-term care, such as a nursing home.

How to Pay for Home Health Care

If you have long-term care insurance, you may have coverage for in-home care. When purchasing a policy, read it carefully. Not all long-term care insurance has this coverage. Some only apply to nursing homes.

The Aid and Attendance benefit may provide some coverage to veterans and their spouses. It is an extra monthly payment that can be used to pay for home health care. There are qualifications that you’ll need to meet. Contact the Veterans Administration to see if you qualify.

Some hybrid life insurances are designed to cover long-term care. If you’ve purchased one, check your policy to see if you have home health care coverage.

Depending on the insurance company’s rules, you may be able to tap into your life insurance’s cash value. Remember that surrendering or selling a policy will be less than the original death benefit. This can be significant.

Demand for Home Health Care Increasing

The home health care industry is expected to grow 21 percent by 2031. Compare that to the average industry growth of 7 percent. And although anyone can use home health care, aging in America is the most significant contributor to this expanding industry.

Sixty-five-year-olds make up 16.5 percent of the U.S. population. And 80 percent of those adults have at least one chronic condition. Sixty-eight percent of those over 65 have two or more chronic conditions.

The demand for home health care is only increasing as the population ages. It’s wise to plan early regarding aging in your home.

The Epoch Times Copyright © 2023 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.