Paying for Home Health Care

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Compared to a nursing home or an assisted living facility, home health care services are a bargain. However, they aren't free and the dollars have to come from somewhere. According to the U.S Department of Health and Human Services, even if you have a modest need for assistance at home with personal care – say a visit from a home health aide 3 times a week - based on 2008 average costs, you would have to pay about $18,000 a year for those services.

Many people use a variety of methods to pay for home health care services, including paying out of pocket, health insurance policies, long-term care policies, Medicare and Medicaid.

Private Pay

If the care is non-medical care in nature, then it is likely that you will need to pay out of pocket, which means you are personally responsible for all costs

Health Insurance

Depending on what kind of insurance you have, there may be prior authorization required. There also may be co-pay and/or deductible.

Long Term Care Insurance

Not all long-term care insurance policies pay for home health care, so you're your policy carefully. Depending on what kind of insurance you have, there may be prior authorization required. There also may be co-pay and/or deductible.

Medicaid and Medicare

Both of these programs are funded by the government and have specific eligibility requirements and limitations on the types of services covered. They can, however, be an excellent source of support if you qualify.

Older Americans Act (OAA)

The OAA provides federal funds for state and local social service programs that enable frail and disabled older individuals to remain independent in their communities. This funding covers home health care, personal care, chore, escort, meal delivery, and shopping services for individuals with significant need who are 60 years of age and older. Individuals who have the resources to pay for some of these services are being asked to contribute a portion of the fees. The Area Agency on Aging can provide information on such funding opportunities.

Veterans Administration

Veterans who are at least 50% disabled due to a service-related condition are eligible for home health care coverage provided by the Veterans Administration (VA). A physician must authorize these services, which must be delivered through the VA’s network of hospital-based home care units. The VA does not cover non medical services provided by home health care agencies.

Social Services Block Grant Programs

States receive annual funding in the form of federal social services block grants for state-identified service needs. The funds are allocated by the government on the basis of the state’s population and within a federal limit. Generally, a portion of the funding is usually directed into programs which offer home health care services, including homemaker services. State health departments and local offices on aging are good resources for additional information on these programs.

Community Organizations

In some communities, local non-profit organizations, provide financial support for home health and supportive care. Typically dependent on an individuals eligibility and financial circumstances, such organizations may pay for a portion or even all of the services needed. Hospital discharge planners, social workers, local offices on aging, and the United Way are all good resources for more information.