Adult Day Care Costs 2024

Average Costs of Adult Day Care Nationwide

Most people who visit adult day care facilities will spend four to 12 hours per day there, up to five days per week. Families often use adult day care facilities as a respite care option, giving caregivers time to work, focus on their families, or relax. This break from caregiving can help caregivers avoid burnout.

For many families, adult day care is the most affordable type of care. With an estimated median daily rate of $98, adult day care is far cheaper than the equivalent for homemaker services ($195), in-home health aide care ($213), assisted living ($181), or residential nursing homes, which start at $294 for a semiprivate room and go up to $330 for a private room.

Of course, it’s still important for older adults and their families to research to find out which facilities in their area are the most affordable. Pay close attention to fee structures, too. Some facilities charge by the hour, while others offer flat rates.

Average Costs of Adult Day Care by State

The median cost of adult day care is around $98 per day in the U.S., but prices vary greatly depending on the state. Such services are most expensive in sparsely populated states like North Dakota ($185). They’re cheapest in Alabama ($46) and Texas ($52). Nationally, families can expect to spend about $2,120 for one month of adult day care for their loved one.1

Adult Day Care Costs Will Likely Increase Overtime

Like many other expenses, adult day health care is expected to rise yearly. Looking at predicted increases can help you better plan for your care costs. The chart below shows Genworth’s estimations for adult day health care costs for 2022 to 2032.

How to Pay for Adult Day Care

Navigating how to pay for senior care can be confusing. Depending on your insurance plan, you may get help to pay for adult day care services or need to self-pay for care. Let’s take a look at some common payment questions.

Does Medicare cover adult day care costs?

Unfortunately, Original Medicare does not cover any costs associated with adult day care. However, suppose you have a Medicare Advantage plan (also called Medicare Part C). In that case, you may have limited coverage for adult day care services as part of the insurer’s comprehensive home care services. You’ll need to check with your provider to see if you have any coverage.

Does Medicaid cover adult day care costs?

Currently, Medicaid provides comprehensive coverage for adult day care and adult day health care. It’s part of the program’s commitment to covering home and community-based services (HCBS).3 Regulations vary from state to state, so you must check with your local Medicaid program to see what’s available.

Do veterans’ programs cover adult day care costs?

VA benefits will cover expenses associated with adult day health care for eligible seniors.4 To qualify, you must be eligible for community care and meet the clinical criteria for the service. In other words, a VA physician must indicate that you need adult day health care. Older adults who qualify might need to pay a copay for adult day health care services. How much depends on your income level and your VA service-connected disability status.

In most cases, the VA will not cover adult day health care solely for social purposes or caregiver respite. The main exception is if your Veteran’s Pension includes an Aid and Attendance benefit. This supplemental policy might cover social adult day care.

To see what benefits are available, contact your VA social worker or case manager. They can explain your options and determine your copay amount.

What are private payment options for adult day care?

Many older adults turn to retirement funds, savings, family contributions, and other forms of private payment to pay for adult day care. Long-term care insurance is another popular option, but whether or not adult care services are covered will depend on the specific policy. Some policies cover only health care-related expenses at assisted living homes or nursing homes. Other policies are more generous and cover community-based care options.

Seniors without enough regular income or savings to afford adult day care might also take out a loan, secure a reverse home mortgage, or cash out on the value of a life insurance policy. Speak to your family or a trusted financial advisor to decide how best to pay for the care you need.

» Further Reading: Long Term Care Calculator

Are adult day care costs tax deductible?

Adult day care costs are nearly always tax deductible. You have two options if your loved one receives adult day care services. You can include the cost as a medical expense and receive a medical expense deduction, or you can claim the dependent care credit. The dependent care credit allows you to claim up to $3,000 of adult day care costs for one dependent or up to $6,000 for two

Remember that you can claim one deduction or the other only. Consult a financial advisor or tax professional to guide you toward the most beneficial claim.