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Is Assisted Living More Expensive Than In-Home Care?
Date Updated: December 9, 2024
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Sarah has produced thousands of articles in diverse niches over her decade-long career as a full-time freelance writer. This includes substantial content in the fields of senior care and health care. She has experience writing about wide-ranging topics, such as types of care, care costs, funding options, state Medicaid programs and senior resources.
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Rachel is a skilled finance manager with a Master of Accounting and a Bachelor of Arts in English. With 10 years of experience in finance, she specializes in business, finance, law, real estate, and marketing. Rachel has worked in personal financial planning, wealth management, and tax accounting, serving senior clients, and has spent nine years in corporate financial planning and analysis. Currently, she manages finances for a Fortune 500 company in New York City.
Assisted living is more expensive than in-home care for those who only require a few weekly hours of support. However, seniors who need full-time home care typically pay more than their contemporaries residing in assisted living communities. Around-the-clock home care costs significantly more than residential assisted living.
Assisted Living Versus In-Home Care Costs
According to Genworth Financial, the nationwide median assisted living cost for 2024 stands at $5,350 monthly. Conversely, full-time home care costs around $5,720 per month, based on 44 hours of weekly care. Home care agencies typically bill by the hour, charging about $30 hourly. Therefore, seniors requiring a few weekly hours of support or companionship pay less than those in assisted living communities; 14 hours of weekly care comes in at $1,820 monthly and 30 hours run $3,900.
However, older adults who need eight hours of care each day of the week can expect to pay approximately $7,280 per month. Seniors typically spend almost $22,000 monthly for 24/7 home care.
Factors Affecting Senior Living Costs
Alongside service duration and frequency, the exact services required affect the costs of assisted living and home care. Assisted living communities typically offer several care levels, ranging from leisure opportunities and minimal support to hands-on help with several activities of daily living. Fees increase accordingly. Similarly, home care aides who provide companionship and help with light domestic duties generally charge less than those who support seniors with personal care tasks, such as bathing and toileting.
Estimated fees also vary throughout the country. For example, Colorado’s assisted living communities charge a median monthly rate of $5,073, while local home care providers charge about $6,673 for 44 hours of weekly care. In-home care runs $433 more than assisted living in Virginia and $875 higher in Florida. On the other hand, home care offers a cost-effective option in Mississippi, where agencies charge a median of $2,860 monthly compared to $3,800 for assisted living.
Financial Assistance for Senior Care
Various funding options help eligible seniors pay for home care and assisted living costs, minus bed and board. Many state Medicaid programs provide financial support for both types of senior care, often via Home and Community-Based Waiver Services programs. Likewise, VA benefits pay for assisted living and in-home care for eligible veterans.
Although Medicare doesn’t cover long-term care, such as assisted living, it may pay for elements of home care in limited situations. Medicare pays for medically necessary, doctor-ordered home health care, distinct from nonmedical in-home care. However, Medicare also pays for personal care assistance for qualifying seniors receiving skilled services at home.