Types of Home Health Care Determines Cost
There are two types of home health care services. These are homemaker services and health aide services.A homemaker cleans, does laundry, and prepares meals. They take care of tasks around the house that the seniors no longer can.
Home health aides assist with activities of daily living, including bathing and eating.
How Do Agencies Determine Cost?
Most agencies charge by the hour, but some have discounted rates for monthly contracts. Some factors that go into pricing include geographic location, level of care, and licensing requirements.The industry standard for home health care is 44 hours a week. But that’s not required. You choose how many hours a week you want.
There was a 5.39 percent increase in the cost between 2004 and 2021. Between 2020 and 2021, the cost shot up 10.6 percent. But this could have been due to the pandemic.
Average Cost of Home Health Care
In 2021, the national average for hourly homemaker services was $26. By 2031, this cost is expected to be around $35. A home health aide in 2021 ran $27 and is expected to increase to approximately $37 by 2031.But that’s the national average. Depending on your state and city, you could be paying more or less. For example, these states vary from the national average.
- San Francisco, California—$32
- New York, New York—$30
- Miami, Florida—$23
- Chicago, Illinois—$30
- Boston, Massachusetts—$32.75
- Charleston, West Virginia—$23.50
- Philadelphia, Pennsylvania—$28
What Does Medicare Cover for Home Health Care?
There is limited coverage for home health care from Medicare. Covered home health services include:- medically necessary part-time or intermittent skilled nursing care;
- occupational therapy;
- speech-language pathology services;
- medical social services;
- part-time or intermittent home care if you’re also receiving skilled nursing care at the same time as skilled nursing care;
- and some injectables and medical supplies.
And although Medicare may pay for a home health aide under some circumstances, it will not pay for homemaker services.
If it’s expected that you’ll need more than this, you won’t qualify for home health care.
How to Pay for Home Health Care
If you have long-term care insurance, you may have coverage for in-home care. When purchasing a policy, read it carefully. Not all long-term care insurance has this coverage. Some only apply to nursing homes.Some hybrid life insurances are designed to cover long-term care. If you’ve purchased one, check your policy to see if you have home health care coverage.
Demand for Home Health Care Increasing
The home health care industry is expected to grow 21 percent by 2031. Compare that to the average industry growth of 7 percent. And although anyone can use home health care, aging in America is the most significant contributor to this expanding industry.The demand for home health care is only increasing as the population ages. It’s wise to plan early regarding aging in your home.