The Costs Of Home Caregivers


Unlike other areas of health care, the cost of hiring someone to help look after to an aging family member at home has been relatively stable. The cost of home care giving has gone up only about 1% annually over the last five years, compared with an increase of about 4% a year for institutional care, the report said. The report reflects the cost of hiring a home caregiver through an agency, which typically costs more than directly hiring a caregiver.

When it comes to funding long-term care options, why is home health care such an attractive alternative? Because home care providers don’t maintain large facilities and generally have fewer regulations to follow, according to a recent New York Timesarticle,"Tips for Choosing Care for an Aging or Ailing Family Member." In short, it is less expensive (and you get to remain in your own home). According to the article, there is currently an ample supply of workers to serve as at-home caregivers.

However, these rates and the supply may change down the road. As baby boomers grow older, the demand for caregivers will most likely increase. Most of those baby boomers will want to stay in their own homes as long as they can.

The cost of hiring a caregiver may also be impacted by new regulations that go into effect in 2015. These regulations extend federal minimum wage and overtime protection to many home care workers.

Remember that extended care at home is typically not covered by Medicare. So this cost would be out of pocket, unless you have long-term care insurance or qualify for Medicaid.

Talk to an elder care attorney about your options.

Reference: New York Times (May 2, 2014) "Tips for Choosing Care for an Aging or Ailing Family Member"

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