Half of Seniors Over Age 75 Can't Afford Home Health Care Visits

Most older Americans can't afford home care after accounting for their daily living expenses, according to a new report by the Harvard University Joint Center for Housing Studies.

Roughly 75% of American households ages 75 and older do not have enough income to pay for daily home health aide visits in addition to their basic living expenses (which include housing, transportation, food and healthcare costs). The median cost of daily home healthcare was $41,000 in 2021, making it affordable only for the top 25% of earners, the report found. Just a tiny percentage — less than 5% of American seniors — could afford 24-hour home healthcare.

Black and Hispanic seniors, and those who have trouble completing activities of daily living, were even less likely to be able to afford care, it noted. Only about 14% of Black seniors and 11% of Hispanic seniors are able to afford daily home health aide visits. Roughly 19% of households with a resident who has mobility impairment or trouble completing ADLs could afford daily care.

For older adults with lower income, less frequent home health aide visits may be a more affordable option, according to the report. More than half of senior households in the US can afford one visit per week, and about one-third can afford four weekly visits. 

Still, almost half of US seniors cannot afford any long-term care or home health aide visits whatsoever, the researchers pointed out.

These disparities may continue to widen as the population of older adults in the US grows.

“Without policy changes, many will not be able to afford the long-term care services they need to live in the home of their choice,” the report said. “In our current system, households with low and moderate incomes unable to simultaneously afford their homes and their care may be faced with unwanted moves.”

The researchers urged policymakers to improve both long-term care and housing programs to ensure seniors — particularly those with lower income — can afford care as they age. They also called for better funding of Medicaid home- and community-based services and expanded long-term care coverage within Medicare. 

The study only considered income.  Many seniors are forced to spend down assets to afford long-term care.  Fortunately most seniors don't require daily home health care, and fewer require 24-hour home health care.  

The study underscores the importance of sound legal and financial planning.

Source: Healy, A., "Daily home health visits are unaffordable for 3 in 4 older adults, Harvard study finds," McKnights Home Care.