Home Health Care Costs and Financial Assistance

A growing number of Americans require skilled nursing services to continue living in their own homes. In 2020, three million people in the United States received or ended home health care. 

Before going any further, it'll be useful to differentiate between "in-home care" and "home health care." In-home care involves nonmedical assistance with daily chores and activities of daily living (ADLs) like bathing and dressing. Home health care comprises skilled nursing or therapeutic services, sometimes provided through home health agencies. 

As you might expect, home health care and in-home care costs can be significant. Fortunately, in almost every state, financial aid programs can help your senior loved one remain in their home while receiving the care they need. Read on to learn more. 

Home health care services vary by provider. Many older adults access these services through Medicare, Medicaid, or state-sponsored programs. Services offered may include the following:

 

• Wound care
• Medication tracking and administration
• Catheters
• Feeding and intravenous tubes
• Injections
• Physical therapy
• Occupational therapy
• In-home care/assistance with activities like bathing, grooming, and dressing
• Medical supplies

Homebound seniors are often the best fit for home health services due to injury, illness, and/or disability. These adults typically need assistance with ADLs and medical attention. Older adults who require nursing home levels of care and would benefit from staying in their homes often benefit from this type of care, along with seniors who have Alzheimer's disease and related dementias. 

KFF reports that, in 2023, yearly home health aide services cost $288,288, on average. Per CareScout, as of 2024, the monthly median cost for a home health aide was $6,483, translating to a median annual cost of around $78,000. Keep in mind that health care costs can vary widely by location. 

 

According to various outlets, in-home memory care costs approximately $30 per hour. Costs can vary by location and your senior loved one's care needs, along with the caregiver's level of experience and professional skill. You may also have to factor accessibility and safety home modifications into your budget.

Outpatient surgery recovery, commonly known as postoperative care, commonly occurs at home, especially for older adults. Healing at home is often more comfortable and conducive to recovery. 

Depending on the surgery, your senior loved one may need in-home, nonmedical support or home health care services. According to CareScout, both types of care cost $33-$34 per hour, although median hourly costs can fluctuate from $25-$43 depending on location.

It's still unclear how the second Trump administration's policies may affect Medicare, Medicaid, and veteran's benefits. 

 

As of publish time for this article, The Department of Government Efficiency, whose status remains nebulous as an official government agency, had begun to cut costs across government branches. Social Security, Medicare, Medicaid, and other forms of government aid for seniors have begun to feel the ripple effects.  

In early March 2025, Congress was working on a deal to make Trump's 2017 tax cuts permanent, which would include hundreds of billions of dollars in Medicaid cuts. However, Trump said in late February that his administration is "not going to touch" Medicaid and that he was mostly looking for fraud. As such, the situation remains precarious.

Medicare Parts A or B can sometimes cover home health care, but this option presents some significant barriers. A health care provider must meet face-to-face with you or your loved one to determine home health care eligibility, and another health care provider must order your care. After clearing these hurdles, only a Medicare-certified home health agency can provide the care.

Medicare does not pay for:

 

• In-home care like cleaning and shopping
• 24-hour care in your home
• Meal delivery
• Support with ADLs

 

There is a gap in Medicare coverage for home health, however — if you need more than intermittent skilled care, you won't qualify for home health care. 

Medicare.gov defines "intermittent" care as up to eight hours of care per day. If you or your loved one need 9-24 hours of skilled nursing care in your home, Medicare will not cover it. 

The federal government currently requires all 50 states to offer some form of home health benefits through Medicaid. The amount and types of care Medicaid covers varies by state, however. Medicaid is the primary payer of long-term care services in America. To qualify for Medicaid's income threshold, many seniors have to offload or spend their savings. 

Other factors can affect Medicaid eligibility, such as pre-existing conditions, income, and state residency. If you're approved for Medicaid, your state's Medicaid income threshold could cause you to lose your Medicaid benefits if you get married or someone gifts you a sum that puts you over the limit. 

The federal government established the National Family Caregiver Support Program (NFCSP) at the turn of the millennium. The program awards grants to states in proportion to how much of their population is 70 or older. 

NFCSP supports unpaid family and informal caregivers, including counseling and respite care. The national program often works alongside state or local programs that provide similar services. 

Veterans who are clinically eligible and meet conditions for community care can access Homemaker and Home Health Aide Care through the U.S. Department of Veterans Affairs. 

These home care professionals provide nonmedical care and assistance with activities of daily living. While they are not trained nurses, they work under the supervision of registered nurses, who form part of each veteran's care team and play a part in assessment. 

Whether your senior loved one is in independent living, assisted living, a nursing home, or a memory care facility, they may receive the care they need in the comfort and privacy of their own home. 

While policies could change under the Trump administration, as of April 2025, all 50 states provided funding for home health care through Medicaid. Most states also offer additional funding for home health care, including memory and dementia care, through state-sponsored programs. Each state offers unique funding opportunities, so research and explore available services in your senior loved one's area.

Additional reporting by Victoria Lurie

• Alker, Joan. (2025). What is President Trump saying about Medicaid? Georgetown University Center for Children and Families
• Becker, Amanda. (2025). The 19th explains: is Trump cutting Medicaid? The 19th 
• Calculate the cost of long-term care near you. (2024). CareScout
• Chidambaram, Priya, et al. (2024). 10 things about long-term services and supports. KFF
• Disability benefits. (2024). Last Week Tonight
• Eligibility policy. (n.d). Medicaid.gov 
• Geriatrics and extended care. (2025). U.S. Department of Veterans Affairs
• Home health services. (n.d.). Medicare.gov
• Medicaid and home health care and nonmedical, in-home care. (2025). American Council on Aging
• Medicaid home health care. (2023). United Healthcare
• National family caregiver support program. (2025). Administration for Community Living
• Nursing facilities | Medicaid. (n.d.) Medicaid.gov
• Paying for home health and hospice care. (n.d.). Johns Hopkins Medicine
• Turner, Wayne. (2020). Congress’ stimulus package and its impact on MAGI. National Health Law Program
• Wiles, Russ. (2025). Is Trump planning to cut Social Security, Medicare, and Medicaid? What is and isn't known. Arizona Republic