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Does Social Security Pay for In-Home Care?

6 minute readLast updated May 2, 2023
Written by Leah Hallstrom
Reviewed by James Schier, CFSJames Schier is a financial advisor and Certified Fund Specialist focusing largely on helping retirees achieve a sense of financial security.
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Millions of older adults rely on Social Security benefits to fund senior care communities and services. Seniors who wish to age in place and seek in-home support can use Social Security to help pay for home care and home health services. However, Social Security likely won’t be enough to cover the full cost of an in-home caregiver. To understand how your loved one can use these benefits to pay for in-home support, let’s explore the different types of Social Security benefits, costs of care, and more.

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Understanding Social Security benefits

Trying to navigate the ins and outs of Social Security benefits can be a complex process, especially when you’re also working to organize in-home care for an aging loved one. It’s important to be aware that Social Security is not a form of insurance, but it can help people cover the costs of medical and nonmedical services.

To understand how Social Security payments can help offset the costs of senior care, the first step is to differentiate between the types of benefits offered by the Social Security Administration (SSA).

Social Security benefits are financed by employer and employee contributions throughout the course of a person’s career. The average monthly Social Security benefit is currently $1,691.[01]

Social Security programs for people with disabilities or chronic illnesses

Under the SSA, there are specific programs tailored to help seniors with disabilities and chronic illnesses.

Supplemental Security Income (SSI) benefits were created for low-income seniors and disabled adults. There are certain requirements one must meet to be eligible for SSI benefits. Qualified beneficiaries must:

  • Be 65 or older, blind, or disabled
  • Not currently live in a publicly funded institution or government-run hospital
  • Be a citizen of the United States or of equal status
  • Have a limited income

The average monthly SSI payment for adults 65 and over is $553.94.[01]

Social Security Disability Insurance (SSDI) is for adults who aren’t yet qualified to receive retirement benefits, and it’s based on work history eligibility requirements. Adults must have a qualifying work disability to be eligible for SSDI, meaning they cannot return to work or adjust to new work due to their condition. Only individuals with long-term or permanent disabilities are eligible for SSDI benefits.

The SSA has a strict set of covered disabilities, including but not limited to:

  • Neurological disorders
  • Cancer or malignant neoplastic diseases
  • Musculoskeletal disorders
  • Cardiovascular issues
  • Neurological complications
  • Mental disorders

The average monthly SSDI benefit is $1,688.[02]

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Will Social Security cover in-home care costs?

Yes, seniors can use Social Security, SSI, and SSDI benefits to help cover in-home care costs.

Social Security won’t pay a caregiver directly, but seniors can use their benefits to fund home care and home health services. While they sound similar, home care and home health care are actually two unique care types, offering nonmedical and medical care, respectively.

We’ll explore the differences in services and cost below to determine how much Social Security payments will cover for both types of care.

Will Social Security pay for home care?

Yes, Social Security benefits can be used to pay for home care services. However, Social Security amounts likely won’t cover the full cost of those services. Keep in mind that in-home care may also be tax deductible for your loved one. The median cost of a home care aide is $30 per hour, which at 40 hours each week equals  $5,200 per month, according to A Place for Mom’s 2023 Cost of Long-Term Care and Senior Living report.

Home care services include:

  • Companionship
  • Assistance with activities of daily living (ADLs)
  • Housekeeping
  • Meal preparation
  • Transportation

Does Social Security Disability Insurance pay for in-home care?

Yes, but only individuals with a qualifying work disability are eligible to receive SSDI benefits. However, the average monthly SSDI benefit of $1688 is not enough to cover the entire cost of a full-time in-home caregiver which is $5200 each month. SSDI benefits can be used to pay for both home care and home health services.

In-home care services are tailored to meet a senior’s unique needs, so it’s important to identify what kind of support your loved one needs before hiring help.

Does Social Security pay for home health care?

Yes, Social Security payments can go toward home health care. Seniors who need home health services can use their Social Security, SSI, or SSDI benefits to pay for home health care. Costs depend on the care a senior needs and their insurance. In many cases Medicare and/or Medicaid may cover qualified home health care costs.

Home health care services include:

  • Pain and symptom management
  • Medication administration
  • Skilled nursing
  • Physical, occupational, and speech therapy

Using Medicare and Medicaid to supplement senior care

Federal and state-funded programs like Medicare and Medicaid are often used to cover a portion of senior care. While both offer some coverage for in-home care services, these programs have specific eligibility requirements for seniors. It’s also possible for seniors to qualify for both Medicare and Medicaid.

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Medicare

Available to anyone age 65 or older or to adults who have a disability or another qualifying condition, Medicare provides essential health insurance to more than 65 million Americans.[03] Social Security and Medicare are closely connected, and the SSA manages Medicare enrollment.

Individuals receiving Social Security retirement benefits will be automatically enrolled in Medicare Parts A and B on their 65th birthday. Similarly, anyone receiving SSDI benefits will be automatically enrolled in Medicare Parts A and B after a 24-month period,[04] which means in-home care will be covered for eligible seniors at that point.

Medicaid

A needs-based program offering free and low-cost health care, Medicaid provides health coverage to more than 72 million Americans.[05]

Adults who qualify for SSI benefits tend to be eligible for Medicaid coverage, and state-based Medicaid programs may even pay Medicare premiums for anyone receiving SSI benefits.[06] While this isn’t a guarantee, it’s certainly worth checking with your parent’s state-based Medicaid agency to understand eligibility requirements.

Exploring other payment options for in-home care

Whether or not someone’s using Social Security, paying for in-home care likely won’t be covered in full. Seniors often take a mix-and-match approach to pay for home care.

The following options are common ways to supplement in-home care costs:

Finding in-home care options for a senior loved one

If you’re ready to explore hiring an in-home caregiver for an aging parent, A Place for Mom can help. At no cost to you, our Senior Living Advisors will work to understand your loved one’s needs and offer a list of personalized recommendations for home care providers.

SHARE THE ARTICLE

  1. Social Security Administration. (2023, February). Monthly statistical snapshot, January 2023.

  2. National Council on Aging. (2022, March 16). SSI vs. SSDI: The differences, benefits, and how to apply.

  3. Center for Medicare Advocacy. (2023, January 12). Medicare enrollment numbers.

  4. Social Security. Medicare information.

Meet the Author
Leah Hallstrom

Leah Hallstrom is a former copywriter and editor at A Place for Mom, where she crafted articles on senior living topics like home health, memory care, and hospice services. Previously, she worked as a communications professional in academia. Leah holds bachelor’s degrees in communication studies and psychology from the University of Kansas.

Edited by

Danny Szlauderbach

Reviewed by

James Schier, CFS

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