How to Pay for Home Care: VA, Long-Term Care Insurance and Medi-Cal
Most families pay for home care from a mix of sources, not one. Medicare rarely covers ongoing help, but several programs and benefits can cut the monthly bill significantly if you know where to look.
Monthly VA Aid and Attendance for a married veteran, 2026
Up to $2,795
Maximum pension figures change every December. Actual awards depend on income and care costs.
Ways to pay for home care
VA Aid and Attendance
- What it pays
- Monthly pension add-on
- Who qualifies
- Wartime veterans and surviving spouses
Needs help with daily activities and meets income limits
Long-term care insurance
- What it pays
- Daily benefit, often $100 to $300
- Who qualifies
- Policyholders needing help with 2 of 6 daily activities
Most have a 30 to 90 day waiting period
Medi-Cal IHSS
- What it pays
- Pays a caregiver hourly
- Who qualifies
- Medi-Cal eligible, at risk without help
Family members can often be the paid caregiver
Medicare home health
- What it pays
- Short-term skilled visits
- Who qualifies
- Homebound, doctor-ordered skilled need
Does not cover ongoing personal care
Private pay and home equity
- What it pays
- Licensed agency $37 to $50 per hour
- Who qualifies
- Anyone
Reverse mortgages and life insurance conversions can fund it
| Funding source | What it pays | Who qualifies | Good to know |
|---|---|---|---|
| VA Aid and Attendance | Monthly pension add-on | Wartime veterans and surviving spouses | Needs help with daily activities and meets income limits |
| Long-term care insurance | Daily benefit, often $100 to $300 | Policyholders needing help with 2 of 6 daily activities | Most have a 30 to 90 day waiting period |
| Medi-Cal IHSS | Pays a caregiver hourly | Medi-Cal eligible, at risk without help | Family members can often be the paid caregiver |
| Medicare home health | Short-term skilled visits | Homebound, doctor-ordered skilled need | Does not cover ongoing personal care |
| Private pay and home equity | Licensed agency $37 to $50 per hour | Anyone | Reverse mortgages and life insurance conversions can fund it |
Ranges reflect licensed agency pricing in 2026. Rates vary by ZIP code, weekly hours and care level. See rates by ZIP code.
Start with the benefits you already have
Dig out any long-term care insurance or hybrid life policy first, and call the insurer to ask exactly what triggers benefits and whether agency care is required. Many policies only reimburse licensed agencies.
If your loved one served during a wartime period, apply for Aid and Attendance early. Awards can be paid back to the application date, and the process often takes months.
Tax breaks families miss
Home care can be a deductible medical expense when it is part of a care plan for someone chronically ill.
- Medical expense deduction for costs above 7.5 percent of adjusted gross income
- Dependent care credit if you pay for care so you can work
- Employer dependent care FSA, up to the annual limit
Run the numbers for your situation
Frequently Asked Questions
More on care costs
The agency we point families to
We keep this site independent, and we do not sell placement. When families ask us who to call first, we point them to SYNERGY HomeCare because it meets every item on the checklist below for non-medical in-home care. You are free to interview several agencies, and the questions further down this page work for any of them.
- Licensed as a Home Care Organization with the California Department of Social Services
- Caregivers are employees, background-checked through the state Home Care Aide Registry, bonded and insured
- Written care plan with a local care manager who visits the home
- Flexible schedules from a few hours a week through 24-hour and live-in care
- Experience with dementia, Parkinson's, post-surgery recovery and hospice support
Cost figures are educational estimates for 2026 and vary by location, provider and care level. Confirm pricing and licensing directly with any agency you consider.