The median cost of full-time home care is $5,720 per month while the median monthly cost of a nursing home is $8,669. Home care and nursing homes are two common options for seniors seeking regular assistance. Understanding the different monthly costs, services, and benefits that both types of care offer can help families decide which option may best suit their loved one’s needs. The above cost information was sourced from A Place for Mom and Genworth Financial.
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Home care is typically more affordable than nursing homes. However, nursing homes may be less costly than home care when a senior requires round-the-clock medical supervision.
Home care expenses vary based on how much support an aging loved one needs. A full-time caregiver may work well for families who can provide weekend and overnight care but need someone to care for their loved one during workdays.
It can be hard to provide an exact picture of senior care costs without considering a person’s unique needs. For example, if your parent requires medical support, they need home health care, which is more expensive than nonmedical home care. This is because home health care must be provided by a licensed nurse or therapist. This is one of the biggest differences between home care and home health care.
Continuous home care may be needed if your loved one prefers to live at home but requires round-the-clock assistance and supervision. If this level of support is required, a residential community like assisted living or a nursing home may be more afforable in some cases.
Keep in mind that in-home care may be tax deductible in some circumstances.
In the graphic below, you can compare the monthly cost of different nonmedical home care scenarios with the monthly cost of a nursing home. The home care cost estimates are based on a median rate of $30 per hour.[01]
Nursing home costs can be seen as “all-inclusive” prices because the monthly rate covers room and board, assistance with activities of daily living (ADLs), and medical care. Nursing home prices are determined primarily by location and what kind of room a senior selects.
Here’s a breakdown of the national median costs for nursing homes:[02]
Yes, families can deduct nursing home care from taxes as long as they are considered medical expenses as outlined in IRS Publication 502. Expenses must exceed 7.5% of one’s adjusted gross income and may include costs of a diagnosis, cure, treatment, or prevention of a disease.
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Home care provides nonmedical support for seniors in their home. This differs from nursing homes, which provide round-the-clock medical care.
Nursing homes are typically more expensive than home care because they offer room and board along with 24/7 skilled nursing care. Nursing homes are also staffed with a team of medical professionals including doctors, nurses, and occupational and physical therapists.
Home care services are primarily nonmedical care services provided by a companion or an aide. They could include help with activities of daily living (ADLs), companionship, light housekeeping, transportation, errand services, and other supportive tasks. Home health care services include medical care from a licensed professional. This makes home health care significantly more expensive than home care.
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Paying for home care and nursing homes can differ significantly. Home care is typically paid for out of pocket whereas nursing home costs are usually covered by public programs or VA benefits.
Families often pay for home care services using a combination of private funds, such as retirement savings, pension income, or long-term care insurance.
Nursing home care may be at least partially covered by Medicaid and/or Medicare for those who meet certain criteria. VA benefits can help qualifying veterans and their surviving spouses pay for home care and nursing home care, too.
Read more:How to Pay for a Nursing Home
Understanding the cost differences between home care and nursing homes may help you make a decision about which type of long-term care is best for your loved one.
While A Place for Mom doesn’t refer to nursing homes, our Senior Living Advisors can help your family explore other senior care options in your area. Many of the assisted living communities we partner with enable residents access to nursing care services on site when they require them. Our advisors can also provide information about local home care providers based on your loved one’s unique needs and budget, all at no cost to you.
Article optimized by Kevin Ryan
A Place for Mom. (2024). A Place for Mom proprietary data.
Genworth Financial, Inc. (2023). Cost of Care Survey.
The information contained on this page is for informational purposes only and is not intended to constitute medical, legal or financial advice or create a professional relationship between A Place for Mom and the reader. Always seek the advice of your health care provider, attorney or financial advisor with respect to any particular matter, and do not act or refrain from acting on the basis of anything you have read on this site. Links to third-party websites are only for the convenience of the reader; A Place for Mom does not endorse the contents of the third-party sites.
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