Private pay home care means using personal funds or assets to pay for a loved one’s nonmedical home care rather than having the care paid for by Medicare, Medicaid, or another payer. Because ongoing nonmedical home care is often paid directly by families, you may hear agencies describe their services as “private pay.” Learn what the term means, why it’s commonly used, and how it relates to paying for home care.
Is home care the right fit?
Let our free assessment guide you to the best senior living options, tailored to your needs.
Private pay home care means paying for a loved one’s nonmedical home care with personal funds or assets rather than having the cost covered by Medicare, Medicaid, or another payer. If you’re researching home care, you’ll likely see agencies describe their services as “private pay.” The term simply explains how care is paid for. It doesn’t describe a different type of home care or a different level of service. While private pay can apply to many types of care, this article focuses on paying for nonmedical home care.
If you’re hiring in-home care for your loved one, you’ll generally choose between two types of providers:
Because nonmedical home care services generally aren’t covered by Medicare, agencies often operate on a private-pay basis and bill families directly.
Some families may qualify for public programs that help cover certain home care services, but eligibility and coverage are limited. Common examples include:
Is home care the right fit?
Let our free assessment guide you to the best senior living options, tailored to your needs.
Families often use one or more financial resources to pay for home care. Available options depend on your loved one’s financial situation, insurance coverage, and eligibility for public benefits. Learn more about these common funding sources:
| If this describes your situation | You may want to consider | What to keep in mind |
|---|---|---|
| Your loved one has retirement income or savings | Paying for care with personal funds | This is often the simplest way to pay for ongoing home care. |
| Your loved one already has long-term care insurance | Using insurance benefits | Review the policy to understand covered services, waiting periods, and whether and how your loved one will be reimbursed after paying for care. |
| Your loved one owns a home | Using home equity or a reverse mortgage | These options can provide funds for care but may affect long-term finances or inheritance plans. |
| Family members want to help share costs | Sharing costs with family | If family members expect reimbursement from the estate, put the agreement in writing to help prevent misunderstandings. |
| Your loved one may qualify for financial assistance | Combining private pay with public programs | Medicaid waivers, VA benefits, or PACE may help offset home care costs if your loved one is eligible. |
Paying privately when home care starts doesn’t prevent your loved one from qualifying for financial assistance later. Depending on your loved one’s eligibility, programs such as Medicaid HCBS waivers, veterans benefits, or PACE may help reduce future out-of-pocket costs. [03,04,05]
Read more:How to Pay for Home Care
Home care questions? Get expert help
Tell us your care needs to receive personalized guidance from our advisors.
Before choosing a home care provider, ask these questions to better understand costs, services, and payment options.
These steps can lead to the help you need using private pay:
Private pay home care is a term meaning home care that’s paid for with personal funds. Private duty nursing refers to hiring a private nurse, typically for post-hospital care or ongoing medical needs.
It depends. An independent caregiver may have a lower hourly rate, but families also take on hiring, scheduling, payroll, taxes, and finding backup care. As care needs increase, the convenience and support an agency provides may offset the higher cost.
Congressional Research Office. (2022, September 15). Medicaid coverage of long-term services and supports.
Medicare.gov. Home Health Services.
Centers for Medicare & Medicaid Services. Home & Community Based Services. Medicaid.gov.
U.S. Department of Veterans Affairs. (2026, March 6). Homemaker and home health aide care. VA.gov.
Medicare. PACE. Medicare.gov.
The information contained on this page is for informational purposes only and is not intended to constitute medical, legal or financial advice or create a professional relationship between A Place for Mom and the reader. Always seek the advice of your health care provider, attorney or financial advisor with respect to any particular matter, and do not act or refrain from acting on the basis of anything you have read on this site. Links to third-party websites are only for the convenience of the reader; A Place for Mom does not endorse the contents of the third-party sites.