Home care agencies send trained caregivers into your loved one's home to help with everyday activities like bathing, dressing, meals, and companionship. It is a way to stay independent at home longer without moving to a facility. We track 12,030 home care agencies nationally, with an hourly rate that typically runs $25 to $45.
Key takeaways
- Home care is non-medical care delivered by an aide, in your loved one's house, for a set number of hours per week.
- Hourly rates run $25 to $45, with a national median around $33 per hour. Live-in care runs $200 to $350 per day.
- Best for people who want to age in place and only need a few hours of help per day or a few days per week.
- Not covered by Medicare unless it's tied to a doctor-ordered episode of skilled care. Medicaid coverage varies by state.
- Different from home health care, which is medical (skilled nursing, therapy) and usually short-term after a hospitalization.
What is Home Care Agency?
Home care is help delivered in the home by a caregiver, focused on the everyday things that get hard as people age: bathing, dressing, using the bathroom, meal preparation, medication reminders, housekeeping, running errands, and companionship. It is called non-medical care because caregivers are not nurses and do not perform clinical tasks. Most families start with a few hours a few days per week and add hours as needs grow. Some end up with 24-hour or live-in care. Home care is arranged either through an agency (which handles hiring, training, background checks, taxes, and backup coverage) or by hiring a caregiver privately. Agency care costs more per hour but takes the employer burden off the family. Home care is different from home health care, which is short-term medical care ordered by a doctor and often covered by Medicare after a hospital stay.
How much does home care agency cost?
Median: $25/month · based on 12,030 home care agency providers we track
Home care runs about $25 to $45 per hour, with a national median around $33. For a typical arrangement of 4 hours a day, 5 days a week, that is roughly $2,600 to $3,600 per month. Full-time coverage at 40 hours per week runs $4,000 to $7,200. Live-in care is priced by the day, usually $200 to $350.
Twenty-four-hour home care is expensive. Two caregivers working 12-hour shifts at $30 per hour comes to over $21,000 per month. At that level, an assisted living community is usually cheaper. Families who choose 24-hour home care usually do so because the person cannot leave home safely, cannot tolerate a move, or has complex needs that a community cannot accommodate.
Agency rates include the caregiver's wages plus the agency's markup for hiring, training, insurance, backup coverage, and taxes. Privately hired caregivers cost less per hour but you become the employer, with all the paperwork and risk that comes with it.
Who is home care agency right for?
Home Care Agency is usually the right fit when your loved one is:
- Wants to stay in their own home and can with a few hours of help
- Recovering from a hospital stay or surgery and needs temporary support
- Has a spouse or family caregiver who needs regular respite
- Lives alone and would benefit from companionship, meal prep, or medication reminders
- Has dementia in the early stages and does not yet need memory care
- Wants to delay or avoid a move to assisted living
Services typically included
- Help with bathing, dressing, and grooming
- Meal planning and preparation
- Medication reminders (agencies cannot administer meds without a nurse)
- Light housekeeping and laundry
- Transportation to appointments, shopping, and social events
- Companionship and mental stimulation
- Overnight or 24-hour coverage if needed
- Care coordination with family and medical providers
- Some agencies: dementia specialization, hospice support, respite care
How to pay for home care agency
Medicare
Medicare does NOT pay for non-medical home care. Do not confuse home care with home health care. Medicare covers home health (skilled nursing or therapy) short-term after a qualifying hospital stay. It does not cover an aide who helps with bathing and meals long-term.
Medicaid
Most states cover some home care through Medicaid HCBS waivers, especially for people who would otherwise need a nursing home. Hours are capped and eligibility is income-based. Contact your state Medicaid office or a local Area Agency on Aging to see what waivers you might qualify for.
VA Aid & Attendance
Veterans and surviving spouses can use their Aid & Attendance benefit to pay for home care. The monthly benefit ranges from about $1,500 to $2,700 depending on marital and health status. Apply through a Veterans Service Officer for free.
Long-term care insurance
Most modern LTC policies cover home care. Some pay a daily benefit, others reimburse actual costs. Check your policy for the elimination period (waiting time before benefits start) and any daily maximum.
Private pay
Most home care is paid out of pocket. Common sources: Social Security, pensions, savings, adult children pooling to help pay, and reverse mortgages for people staying in their own home.
How to choose a home care agency provider
- Choose an agency, not a private caregiver, unless you have time to be a household employer with all the paperwork that involves.
- Ask how caregivers are screened, trained, and backed up when someone calls in sick.
- Ask for the same 1 or 2 caregivers on a regular schedule. Continuity matters for someone with dementia or complex needs.
- Ask what happens if you and the caregiver do not get along. A good agency swaps caregivers without drama.
- Understand the minimum shift length. Most agencies require 3 or 4 hours per visit.
- Get everything in writing: hourly rate, mileage, overtime rules, holiday rates, cancellation policy.
Home Care Agency vs other care types
Home Care Agency vs Assisted Living
Explore Assisted LivingHome care wins if your loved one wants to stay home and needs only a few hours of help per day. Assisted living wins if they need round-the-clock care, are lonely at home, or the house is no longer safe. Cost-wise: home care is cheaper below ~30 hours per week, assisted living is cheaper above that.
Home Care Agency vs Adult Day Care
Explore Adult Day CareAdult day care gives your loved one supervised time out of the house during the day, usually while a family caregiver works. Cheaper than home care per hour but requires transportation and does not help with evenings or overnights. Many families combine both.
Home Care Agency vs Respite Care
Explore Respite CareRespite is short-term care that gives a family caregiver a break. Can be delivered as home care by the hour, or as a short stay in an assisted living or nursing community. Use it before you burn out, not after.
Frequently asked questions
How much does home care cost per hour?
The national median is about $33 per hour, with a range of $25 to $45 depending on state and level of care. Live-in care runs $200 to $350 per day. Agency rates are higher than privately hired caregivers.
Does Medicare pay for home care?
Medicare does not pay for non-medical home care (help with bathing, meals, companionship). It covers home HEALTH care, which is skilled nursing or therapy ordered by a doctor after a hospitalization, on a short-term basis only.
What is the difference between home care and home health care?
Home care is non-medical: an aide helps with daily activities. Home health care is medical: a nurse or therapist provides skilled care after a doctor's order, usually short-term after a hospital stay. Medicare covers home health, not home care.
Can a home care aide give medications?
In most states, aides can remind and hand out pre-poured medications but cannot administer them from a pill bottle. Skilled nursing agencies can send a nurse to administer medications if needed.
Should I hire an agency or a private caregiver?
An agency handles hiring, background checks, training, taxes, and backup coverage. A private caregiver costs less per hour but you become the household employer with all the paperwork. Most families use an agency for peace of mind.
How many hours of home care do we need?
Start with what would make the biggest difference: help with the shower, meal prep, and medication management typically fits into 2 to 4 hours a day. Add hours as needs grow. Most agencies require a 3- or 4-hour minimum per shift.
What if my parent refuses help?
Very common. Start small. Introduce the caregiver as a "helper for the housework" or "company" rather than "you need care." A trial period with a friendly caregiver often changes the resistance.