Caregiver Blog

As the population of seniors in the United States continues to grow, the cost of senior care is becoming an increasingly important topic for families. With longer life expectancies and a wide range of care needs, seniors today have more options than ever before—each with its own price tag. Whether you’re exploring nursing homes, memory care, assisted living, or at-home options like home health care and virtual monitoring services, understanding the cost of these services is crucial for making informed decisions about your loved ones’ care. Let’s take a closer look at the different care options, their associated costs, and who pays for them.

1. Nursing Homes and Memory Care

Nursing homes are often the solution for seniors who need 24-hour medical care. These facilities provide not only personal care (bathing, dressing, etc.) but also skilled nursing services, physical therapy, and specialized care for conditions like dementia and Alzheimer’s disease.

• Cost Range: The average cost of a semi-private room in a nursing home in the U.S. is around $8,000 to $9,000 per month, while a private room can cost upwards of $10,000 per month.  Specialized memory care units, which cater to seniors with Alzheimer’s or other forms of dementia, typically add an extra $1,000 to $2,000 per month on top of standard nursing home costs.

Who Pays for Nursing Homes and Memory Care?

• Medicare: Medicare typically does not cover long-term care in a nursing home. It only covers short-term stays (up to 100 days) in a skilled nursing facility after a hospital stay of at least 3 days. Medicare will cover the first 20 days in full, but after that, you’ll be responsible for a portion of the costs.
• Medicaid: Medicaid does cover long-term nursing home care, but only for eligible individuals with low income and few assets. Medicaid will cover the full cost of care in a Medicaid-certified nursing home, but the eligibility requirements and application process can be complex.  These types of facilities also tend to provide inadequate care.
• Private Insurance/Self-Pay: For those who do not qualify for Medicaid, private pay options or long-term care insurance can cover the cost. However, for many, private insurance may only cover a portion of the cost, leaving families to pay the rest out-of-pocket.

2. Assisted Living

Assisted living facilities are a popular choice for seniors who don’t need around-the-clock medical care but still require some assistance or monitoring. These communities offer a social environment with amenities like meals, activities, and transportation.

• Cost Range: On average, assisted living costs about $4,500 per month, although this can vary widely depending on location, facility size, and level of care required. In some areas, the cost can be closer to $6,000 or more per month.

Who Pays for Assisted Living?

• Medicare: Medicare does not cover the cost of assisted living, as it is considered to be more of a housing service rather than medical care.
• Medicaid: Some states offer Medicaid waivers that may help pay for assisted living, but this depends on the state and the individual's eligibility. In many cases, Medicaid will cover services provided by an assisted living facility (like personal care), but not the cost of rent or food.
• Private Insurance/Self-Pay: Most people pay for assisted living through private funds (savings, retirement accounts, etc.), and some may use long-term care insurance if they have a policy that covers this type of care. Long-term care insurance policies can vary widely in terms of coverage, so it's important to check whether assisted living is included.

3. Home Health Care

For seniors who wish to remain at home but need assistance with medical care, home health care is an option. This can range from skilled nursing services to help with daily activities like bathing and dressing.

• Cost Range: Home health care can cost anywhere from $20 to $30 per hour for a home health aide. Skilled nursing care or therapy services can cost $50 to $150 per visit.

Who Pays for Home Health Care?

• Medicare: Medicare covers home health care if the senior is homebound and requires skilled nursing care or physical therapy. It generally covers 100% of the costs for home health care services, but only if specific criteria are met, such as a doctor’s order for care and periodic reassessment of needs.  Medicare does not cover home care for basic activities of daily living or monitoring of the patient.
• Medicaid: Medicaid can cover home health care for seniors who meet the financial and medical eligibility requirements. Coverage varies by state, but in general, Medicaid may cover personal care services, home health aides, and skilled nursing care.
• Private Insurance/Self-Pay: Private insurance may provide some assistance if home health care is covered under the policy, but this will depend on the individual’s plan.

4. Virtual Care and Monitoring Services

Technology is transforming the landscape of senior care, and one of the emerging trends is virtual monitoring. Companies like OneKey Virtual Care and other telehealth options have popped up that allow companies to monitor your loved ones via cameras or iPads or other devices.  These companies will monitor and ‘check in’ with your loved ones throughout the day.

• Cost Range: Virtual Care typically cost between $6 and $8 per hour with a monthly fee of $200 and a hardware fee of $900.

Who Pays for Virtual Care/Monitoring?

• Medicare: Medicare does not typically cover virtual monitoring systems, though some telehealth consultations and services may be covered if they meet specific criteria.
• Medicaid: Medicaid does not typically cover virtual monitoring services. However, some states may offer certain types of telehealth or remote monitoring services as part of a larger home and community-based care program.
• Private Insurance/Self-Pay: Virtual monitoring services are typically paid for out-of-pocket, though some private insurance plans may provide coverage for certain telehealth services.

5. At-Home Monitoring Technology

Another innovative option is at-home monitoring technology like Care Bloom, which use sensors, wearables, and smart devices to track the health and well-being of seniors in real-time. These systems monitor things like daily activities, sleep patterns, medication adherence, toilet trips and even emotional well-being, with alerts sent to caregivers if there are signs of trouble.

• Cost Range: The basic cost of at-home monitoring tech like Care Bloom is typically around $69-$199 a month, depending on the level of monitored activities and alerts.  Most of these devices have upfront hardware costs ranging between $200-$1000.

Who Pays for At-Home Monitoring?

• Medicare: Like other forms of virtual monitoring, Medicare generally does not cover at-home monitoring services, unless they are part of a broader telemedicine or home health care service that is covered under Medicare guidelines.
• Medicaid: Medicaid coverage for at-home monitoring services varies by state, and most states do not currently cover these types of services.
• Private Insurance/Self-Pay: At-home monitoring services are generally paid for by the individual or their family. While these services are often not covered by traditional insurance plans, they are a more affordable alternative to traditional home care and can help families stay connected to their loved ones’ well-being.

In Conclusion

The high cost of senior care can be very challenging for families. According to the AARP, nearly 50% of families spend more than $30,000 per year on senior care, and about 25% of families spend over $50,000 annually. For many families, this means depleting savings or selling assets to cover the costs.

Families need to be proactive in understanding their options. Whether you’re considering a nursing home, assisted living, home health care, or virtual monitoring solutions, there are a wide range of services to fit different needs and budgets.

By carefully evaluating the options and costs associated with each type of care, families can make informed decisions that balance quality of care with financial feasibility. Ultimately, the goal should be to ensure that seniors can live with dignity, comfort, and peace of mind, regardless of which care solution you choose.