Senior care can be quite expensive. Nursing homes and facilities can cost tens of thousands per year or more. However, the current pandemic has made families change their course of care to home care. Home care is a much more affordable option for seniors, depending on the type of care you need.
According to a survey, the monthly cost for a home health aide on average is $4,576. In comparison to a nursing home room costing around $7,756 per month.
The best way to calculate your home care costs are to assess the situation. What kind of care does your loved one need? Will they need full time care, or live-in services? These are some good questions to keep in mind.

Government Assistance Programs
- Medicare – This federal program provides health insurance to people 65 and over. It usually covers short-term care and does not cover any live-in home health aide services.
- Medicaid – Also a federal program, Medicaid covers eligible low-income adults, and children. Medicaid does cover both long and short-term home care services.
- State assistance programs – is a state covered insurance program for example NJ Family Care is New Jerseys program. Eligibility varies from state to state but have similar requirements to that of Medicaid.
- Veteran Benefits – if your loved one is a veteran, they may be entitled to benefits through the VA, which included free home health aide care.
Some things you will also want to consider are what services and supplies your choice of coverage provides. Furthermore, if your loved one qualifies for more than one of the above options, you will want to assess which is the best option for you.

Private Insurance
Not everyone will qualify for government programs. For those who do not or who do but need more than what they cover, private insurance can be a great option. Long-term care can be great if you or your loved one needs extensive care. This option can be expensive however, depending on your situation.
Out of Pocket Payments
Sadly, many families have no choice but to use their loved ones or their own money to pay for care. Many families are not prepared for these situations. For this reason, it is a best practice to try to save money as your loved one begins to age.

- Take out a loan – Taking out a personal loan is a good option if you do not have savings. The interest rates usually range from 3%-35% depending on your credit score.
- Take out a 2nd mortgage – you can take out another mortgage on yours or your loved one’s home in order to pay for care. The interest rates are usually lower than a loan ranging from 3%-7%.
- Use retirement funds – if you have a 401k you can use that money however, you will have to pay a 10% penalty.
Paying for senior care can be difficult. However, if you keep in mind these options you it will make it easier.