How Much Does Custodial Care Cost?

How Much Does Custodial Care Cost?

Custodial care costs vary by location. Below are 2024 national medians for the estimated costs of nonmedical custodial care.1

• Homemaker services: $5,892 per month
• Home health aides: $6,481 per month
• Adult day health care: $2,120 per month

The cost of non-medical custodial care is lower than skilled nursing care, which includes professional medical care. Custodial care helps individuals with activities of daily living and everyday care needs, while skilled nursing care helps people recover from short-term medical issues. Below are estimated 2024 national averages for the costs of skilled nursing care.

• Semi-private room nursing home care: $8,929 per month
  
• Private room nursing home care: $10,025 per month

Factors That Impact the Cost of Custodial Care

Once you decide custodial care is the best option for you or your loved one, you’ll need to know what affects the care’s cost.

• Time needed for care: Determine whether you or your loved one need part-time or full-time care.
• Location of care: Decide whether you or your loved one need in-home care, adult day care, or assisted living care. Costs will vary by facility type and location.
• Method of hiring: Consider whether you’d like to hire a caregiver through an agency or alone. Agencies ensure you employ only qualified caregivers, but they cost a bit more.
• City of residence: If the cost of living is higher in your area, care likely will cost more. States with higher senior numbers will also charge more.
• Specialized care: Do you or your loved one have a memory disorder, mobility issue, or other condition that requires in-depth caregiving? These can include physical or mental disabilities or even being a veteran.

How to Pay for Custodial Care

Medicare

Medicare doesn’t typically cover custodial care, but it may if it includes medical care at a skilled nursing facility.2 Medicare covers care in a skilled nursing facility for up to 100 days. To qualify, you or your loved one must be admitted to the skilled nursing facility within 30 days of leaving the hospital and for the same condition or illness related to your hospital stay.

Medicaid

Medicaid provides aid to people with limited resources, and your qualification for Medicaid relies on income.3 The program covers care for approved facilities such as nursing homes or assisted living facilities. The amount of aid you receive varies from state to state, so check the benefits in your state to see what you qualify for. The kind of aid you qualify for – for example, physical and mental health support – may also vary.

Long-Term-Care Insurance

Long-term care insurance covers custodial care and is likely one of your best options. You can use it with Medicare to pay for custodial care costs. Most policies cover home care costs, assisted living care costs, nursing care costs, and adult day care costs.4 Many policies limit the period or amount they cover. Some cover long-term care for two to five years, while others last for as long as you live.

Is Custodial Care Tax Deductible?

Custodial care qualifies for tax deductions in specific instances.5 You can count nursing home costs as medical expenses in the following instances:

• You are in a nursing home mainly for medical care.
• You are in a nursing home for nonmedical reasons but receiving medical care. In this case, only the medical care itself qualifies for tax deductions.

Custodial care may also qualify for tax deductions under the Child Tax Credit.6 A family caregiver must claim you as a dependent for a tax credit. There are additional requirements to qualify for this credit:

• You must be a U.S. citizen, national, or legal resident.
• Your caregiver’s income must fall under that tax year’s cutoff ($5,050 in 2024).
• You live with your caregiver, who pays for more than half of your living expenses.
• If your caregiver is not a relative, you must have lived with your caregiver for one year.
• You are not a dependent of another taxpayer.