Home care is one of the most misunderstood financial decisions families make. Most people assume it’s a luxury — something affordable only for the wealthy. Others assume a nursing home is the inevitable, responsible choice. Neither assumption holds up under scrutiny.
The reality is that home care costs vary widely depending on the type of care, the number of hours needed, and where you live. For many families, it is not only the preferred option — it’s the more financially sensible one. This guide breaks down what you can expect to pay, what drives those costs, and how families in Illinois and beyond are funding care without depleting their savings.
See Also: Illinois specific home care costs
What Drives Home Care Costs
No two care situations are identical, which is why home care pricing isn’t one-size-fits-all. Several variables determine what a family will pay.
Type of Care: Companion vs. Personal vs. Skilled
Home care falls into two broad categories, and the distinction has a direct impact on cost.
Non-medical home care — sometimes called companion care or personal care — covers assistance with daily activities: bathing, dressing, meal preparation, transportation, medication reminders, and companionship. This is the most common form of home care and the most widely accessible.
Skilled home health care involves licensed clinical professionals — registered nurses, physical therapists, occupational therapists, or speech therapists — who provide medical services in the home. Wound care, post-surgical monitoring, and IV therapy fall into this category. Skilled care commands higher hourly rates and is typically ordered by a physician following a hospitalization or medical event.
Understanding which type of care is needed is the first step toward an accurate cost estimate.
Hours of Care: Hourly vs. Live-In
The number of hours required is one of the largest cost levers in home care.
Hourly care is billed by the hour, with most agencies requiring a minimum shift of two to four hours. Families who need light support — a few visits per week for companionship, errands, or medication reminders — can structure care as needed and pay only for what they use.
Live-in care involves a caregiver residing in the home, typically working in long shifts with required rest periods. It is not the same as 24-hour care (where two or more caregivers rotate in shifts), and the distinction matters both logistically and financially. Live-in arrangements are often more cost-effective per hour than around-the-clock shift coverage, but they require suitable sleeping accommodations and must comply with state labor regulations.
Geographic Location
Home care costs vary significantly by region. Metropolitan areas — particularly in the Northeast and Pacific Coast — tend to run higher than Midwest markets. Families in the Chicago suburbs, Rockford, and Joliet area often find that local rates are more competitive than national averages suggest, while still reflecting the cost of living in a major metro region.
What Home Care Typically Costs
Private pay, insurance, and assistance programs can cause costs to vary drastically – if you’re in Illinois, contact us for details.
National averages for non-medical home care were $33 to $34 per hour nationally in 2024, according to the Genworth/CareScout Cost of Care Survey — the most comprehensive annual study of long-term care pricing in the United States. Monthly costs depend entirely on the number of hours used:
- Part-time support (20 hours/week): approximately $2,000–$3,000/month
- Full-time support (40 hours/week): approximately $4,500–$6,000/month
- Around-the-clock care (168 hours/week): approximately $15,000–$22,000/month
Skilled home health care typically costs more per visit or per hour, with rates reflecting the licensure and clinical training required. A skilled nursing visit may range from $150 to $250 per visit, depending on the service and market.
These figures represent private pay rates — what families pay out of pocket before any insurance, benefits, or assistance programs are applied.
How Home Care Compares to Assisted Living and Nursing Homes
One of the most persistent misconceptions in senior care planning is that a facility must be less expensive than home care. The opposite is frequently true.
Assisted living communities in the U.S. reached a national annual median of $70,800 per year ($5,900/month) in 2024, according to the Genworth/CareScout Cost of Care Survey — a 10% increase over the prior year. That figure typically covers housing, meals, and basic personal care — but not medical or specialty services, which are billed as add-ons. Occupancy rates in assisted living communities also rose from 77% to 84% year-over-year, a supply pressure that is likely contributing to continued rate increases.
Nursing home care is the most expensive long-term care option. The 2024 Genworth/CareScout survey found the national annual median cost of a semi-private room reached $111,325 ($9,277/month), while a private room reached $127,750 ($10,646/month).
The financial case for home care is strongest at lower to moderate care levels. A senior who needs 25 to 30 hours of non-medical support per week may cost a family $2,500 to $3,500 per month at home — a fraction of the cost of assisted living, with the added benefit of remaining in a familiar environment.
As care needs escalate significantly — requiring 24/7 supervision and intensive clinical support — the cost comparison does shift. But many families find that home care remains cost-competitive well into the moderate stage of care, particularly when combined with family caregiver involvement.
Home care is a scalable cost. Assisted living is a fixed one. You pay for a full facility whether your loved one uses 10 percent of its amenities or 90 percent.
How Families Pay for Home Care
Understanding the cost is only half the equation. Knowing how to pay for it — without unnecessary financial strain — is where most families need guidance.
Private Pay
Private pay refers to out-of-pocket payment using personal savings, retirement accounts, pension income, Social Security, or assets from a home sale or investment portfolio. For families without long-term care insurance or qualifying benefits, this is the default funding path.
Private pay gives families maximum flexibility: they can choose their provider, adjust hours as needed, and make changes without navigating insurance approval processes. The trade-off is that costs are borne entirely by the family.
Long-Term Care Insurance
Long-term care (LTC) insurance is specifically designed to cover care services that Medicare does not — including non-medical home care. Policies vary considerably in their benefit structure, but most include a daily benefit amount (typically $100 to $300 per day), an elimination period (a waiting period before benefits begin, commonly 30 to 90 days), and a benefit period (how long the policy pays out).
Families holding LTC insurance policies should review their policy documentation carefully for:
- Whether home care is a covered benefit (most modern policies include it)
- The elimination period and how to satisfy it
- Whether care must be provided by a licensed agency
- Any requirements for a physician’s order or care assessment
If a policy was purchased more than a decade ago, the benefit amounts may not keep pace with current rates — but partial coverage still significantly reduces out-of-pocket costs.
VA Aid and Attendance Benefit
Veterans and their surviving spouses who require assistance with daily activities may qualify for the VA Aid and Attendance benefit — one of the most underutilized financial resources available for senior care.
Aid and Attendance is a pension enhancement available to wartime veterans (and eligible surviving spouses) who require the aid of another person for activities of daily living. It is not a disability benefit and does not require a service-connected condition.
Benefit amounts (effective December 1, 2024 — current 2025 rates):
- Single veteran: up to $2,424/month
- Married veteran: up to $2,874/month
- Surviving spouse: up to $1,558/month
Eligibility is based on military service (at least 90 days of active duty with at least one day during a wartime period), medical need, and financial qualification. The application process can be complex, and working with a VA-accredited claims agent or elder law attorney can help families navigate it without errors that delay benefits.
Medicare
Medicare coverage for home care is more limited than many families expect. Medicare does cover skilled home health services — nursing care, physical therapy, speech therapy — when ordered by a physician and provided by a Medicare-certified agency. Coverage requires that the beneficiary be homebound and that care be medically necessary.
Medicare does not cover non-medical home care: companion care, personal care assistance, homemaking, or supervision. This is the category of care most families need most — and it falls entirely outside Medicare’s scope.
Medicaid, by contrast, does fund non-medical home care in many states through Home and Community-Based Services (HCBS) waiver programs. Medicaid is income- and asset-based, and eligibility varies by state. Illinois families in Westchester, Joliet, or Rockford who are exploring Medicaid-funded home care should work with a Medicaid planning specialist or elder law attorney.
Veterans Directed Care and Other State Programs
Beyond Aid and Attendance, veterans may also be eligible for the Veterans Directed Care (VDC) program, which provides a flexible budget for veterans to manage and direct their own home care services. State-level programs, Area Agencies on Aging, and local nonprofit organizations may also offer supplemental funding, sliding-scale services, or care coordination support for qualifying families.
Building a Home Care Plan That Works Financially
The families who navigate home care costs most successfully tend to share one approach: they plan early, before a crisis forces a rushed decision.
Start with a care needs assessment. Understanding the level and type of care required is the prerequisite for any cost estimate. An experienced home care agency can conduct an in-home assessment that identifies what services are needed, how many hours are realistic, and what options exist within a family’s budget.
Layer your funding sources. Few families pay for home care from a single source. A veteran’s Aid and Attendance benefit combined with modest private pay can make full-time home care accessible. An LTC insurance policy paired with family caregiver involvement can stretch further than the policy’s benefit amount alone suggests.
Revisit the plan as needs change. Home care is flexible precisely because it can scale. Starting with 15 hours per week and gradually increasing as care needs grow is a reasonable, financially prudent approach — and one that can delay or eliminate the need for a facility entirely.
Speak With a Home Care Professional
If you’re trying to understand what care would realistically cost for your family member — and what options exist to fund it — a conversation with an experienced home care team is the most direct path to clarity.
Destiny Healthcare Services works with families in Westchester, Joliet, and Rockford to build care plans that are matched to both the level of need and the financial realities of the family. There’s no obligation and no sales pressure — just honest answers.
→ Contact Destiny Healthcare Services to schedule a free consultation
Destiny Healthcare Services provides non-medical home care services to seniors and adults across the greater Chicago area, including Westchester, Joliet, and Rockford. Our team specializes in companion care, personal care, and care coordination for families navigating aging, recovery, and long-term care planning.
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References
Centers for Medicare & Medicaid Services. (2024). Home health services coverage. Medicare.gov. https://www.medicare.gov/coverage/home-health-services
Centers for Medicare & Medicaid Services. (2024). Home health services: Medicare provider compliance tips. CMS.gov. https://www.cms.gov/training-education/medicare-learning-networkr-mln/compliance/medicare-provider-compliance-tips/home-health-services
Centers for Medicare & Medicaid Services. (2024). Medicare benefit policy manual: Chapter 7 — Home health services. CMS.gov. https://go.cms.gov/manual-home-health
Genworth Financial & CareScout. (2025, March 4). Genworth and CareScout release Cost of Care Survey results for 2024 [Press release]. Genworth Financial. https://investor.genworth.com/news-events/press-releases/detail/982/genworth-and-carescout-release-cost-of-care-survey-results
Genworth Financial & CareScout. (2025). Cost of Care Survey 2024: Ranked state data tables. CareScout. https://assets.carescout.com/a41bb6478c/298701.pdf
U.S. Department of Veterans Affairs. (2025). Aid and Attendance benefits and Housebound allowance. VA.gov. https://www.va.gov/pension/aid-attendance-housebound/
U.S. Department of Veterans Affairs. (2025). Current pension rates for Veterans. VA.gov. https://www.va.gov/pension/veterans-pension-rates/
U.S. Department of Veterans Affairs. (2025). Eligibility for Veterans Pension. VA.gov. https://www.va.gov/pension/eligibility/