Home Care Cost

Home care cost increased in 47 states between 2019 and 2021, with 23 states showing more than a ten percent increase in cost relative to income. On average, the annual per person cost of home care in 2021 was roughly $42,000 a year (for 30 hours of weekly care at $27 per hour)—more than 20 percent higher than in 2019. Home care is more affordable than nursing homes, which have an annual average cost of $108,000 for a private room, but it still exceeds what many older households can afford to pay with their income. Nationally, home care costs account for 83 percent of the entire income of the typical, older middle-income family. It ranges from representing 63 percent of a typical annual income in Hawaii and Maryland to 105 percent of annual income in Minnesota.

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The median annual private pay cost of licensed home health aide services (based on 30 hours of care per week multiplied by 52 weeks) divided by the median household income for households headed by someone aged 65 or older.  

Cost data for the current year are from the Genworth 2021 Cost of Care Survey and income data are from the AARP Public Policy Institute analysis (PPI) of the 2018 American Community Survey Public Use Microdata Sample.  Reference year cost data are from the Genworth 2019 Cost of Care Survey, and income data are from the 2018 American Community Survey.


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