How to Pay for Private Duty Care for Seniors and Veterans

June 17, 2023
Giselle Bardwell
As our loved ones age, it's important to provide them with the best care possible. For many, private duty in-home care can be the best option. Seniors can be cared for by trained nurses and aides in their own home as opposed to a nursing home. However, one of the main concerns is how to cover the costs for this type of care. There are resources available to families, senior citizens, and even more for veterans, to ease the financial burden. 

Let’s explore some of the ways to pay for in-home private duty care for your loved one.

Personal Funds 

One of the most straightforward ways to pay for in-home care is to use personal funds. This could include the following options: 
  • Savings Accounts
  • Investment Cashouts
  • 401k Distribution
  • Retirement Accounts
  • Reverse Mortgage
  • Second Mortgage
We suggest you discuss any personal fund distributions with all of your family members as clear communication is a crucial step to elderly parent care. We also suggest contacting your family’s financial advisor or finding one to help organize the necessary paperwork and offer guidance.

While using personal funds sounds like the most obvious option, it may not be feasible for every family. Some families don’t have enough savings to cover the amount of care an elderly parent may need or there is family discord. If this fits your situation, there are more options available to you. 

Long-Term Care Insurance 

Long-term care insurance is a type of insurance policy that can help cover the costs of in-home private duty care. The policy typically covers services such as skilled care in the home, personal care and housekeeping. The cost of the policy will depend on factors such as:
  • Age and health of your loved one, 
  • Extent of the coverage, 
  • Insurance carrier, and
  • Other in-place benefits, such as VA benefits 
It's important to note that long-term care insurance typically needs to be purchased before your loved one needs care, as pre-existing conditions may affect eligibility. Check out our Paying for Home Care with Long-Term Care Insurance blog for more information. 

Veterans Benefits 

If your loved one is a veteran, they may be eligible for additional benefits that can cover the costs of in-home care . The Department of Veterans Affairs (VA) provides several programs that can help, and it is important to consult the case manager assigned to your loved one’s case. 

There are several advantageous, but lesser-known and under-leveraged benefits such as the Veterans Aid and Attendance Program (A&A), which provides financial assistance for in-home care for veterans who need help with the activities of daily living.

The bonus of A&A is that benefits also cover spouses. According to, if both of your elderly parents need in-home private care the VA will provide ‘up to $1,794 per month to a veteran, $1,153 per month to a surviving spouse, and $2,127 per month to a couple.’

If you have questions, BrightStar Care of Northeast Ohio can assist with benefit explanations and connect you with local resources and programs. We are also here to provide caregiver support for those looking for an expert in-home care service. Read more about how we’ve supported over 600,000 veterans and their families over the years.


Family Caregiving Agreements 

Contracts that outline the responsibilities of family members who provide care to their loved ones are called family caregiving agreements. These agreements can include financial compensation for the caregiver. While this option may not be feasible for all families, it can be a good way to provide compensation to family members who are providing care to their loved ones. 

If your elderly parent is a veteran, the Veteran Affairs Program of Comprehensive Assistance for Family Caregivers provides a monthly stipend to primary family caregivers to help with financial stress of caring for a loved one.


The Ohio Department of Medicaid is a joint federal and state program that provides healthcare coverage to low-income individuals. Medicaid may cover some or all of the costs associated with in-home private duty care, allowing your loved one to receive personalized care without having to move them to a nursing or rehab facility. 

To qualify for Medicaid, there are certain income and asset limits that must be met and an Ohio Home Care Waiver will need to be filed. 

Social Security benefits can also be used to help pay for private duty care and ease the filing for Medicaid. If your loved one is receiving Social Security, they may be eligible for the Supplemental Security Income (SSI) program, which provides cash assistance to those who are over 65, blind, or disabled and have limited income and resources. If they qualify, Medicaid coverage is automatically included and they do not need to file separately.


Medicare is a federal health insurance program that primarily provides coverage to individuals over the age of 65. While Medicare does not typically cover long-term care, it may cover some in-home care services, such as skilled nursing care, physical therapy, and occupational therapy. However, Medicare coverage is limited, and your loved one may need to pay for additional services out-of-pocket or file for supplemental insurance through Medicaid, if they qualify.

If your elderly family member has Veteran Affairs (VA) benefits, they are not required to enroll in Medicare to keep their VA benefits, although it is recommended that they do enroll when they become eligible.

Paying for in-home care can be challenging, but there are several options available to help cover the costs. It's important to discuss these options with your loved one, siblings, healthcare provider, and financial advisor to ensure all options are being considered and researched. By reviewing all of the options available, your parents can benefit from the best care available in the comfort of their home while removing the financial stress for you and your family. 

If you have any questions or need a cost estimate for in-home private duty care for your elderly parents, please reach out to us by filling out our contact form or calling us at 440.613.1500. We’re here to help 24/7.