What Is Cheaper: Home Care or Nursing Home?
Compare home care and nursing home costs to understand the financial implications for long-term care. Explore key factors and funding options.
When individuals and families consider long-term care options, they face a complex decision balancing personal needs with financial realities. Both home care and nursing home care offer distinct environments and services, each coming with varying financial implications. Understanding these differences is an important step in navigating long-term support. This decision involves assessing the type of care required, the duration of that care, and available financial resources.
Understanding Home Care Costs
Home care costs are structured on an hourly or per-visit basis, dependent on the intensity and frequency of services. The national median hourly cost for non-medical in-home care in the U.S. is $33 in 2025, though this figure fluctuates widely. Basic personal care, including assistance with daily activities like bathing or dressing, may range from $20 to $35 per hour.
More specialized services, such as in-home skilled nursing care, carry higher hourly rates, often ranging from $50 to $130, depending on medical complexity. Geographic location influences these rates, with median state costs varying from $24 to $43 per hour. Agency care typically includes overhead, while independent caregivers may offer lower rates but require families to manage administrative tasks.
Beyond hourly charges, additional expenses can arise with home care. Medical supplies and specialized equipment, such as wheelchairs, may be necessary. Medicare Part B can cover 80% of the allowable expense for medically necessary durable medical equipment, but out-of-pocket costs remain. Home modifications for accessibility, such as installing ramps or widening doorways, can also add to the initial outlay, with costs ranging from $5,000 to $20,000, and potentially higher for extensive renovations. The overall cost of home care is directly proportional to the hours of care needed, making continuous or 24/7 care more expensive, potentially reaching over $21,000 per month for full-time support.
Understanding Nursing Home Costs
Nursing home costs are presented as a daily or monthly rate, which encompasses a comprehensive suite of services. The median cost for a private room is $361 per day or $10,965 per month in 2025, while a semi-private room is $314 per day or $9,555 per month. These rates include room and board, meals, personal care assistance, and some medical services, providing a structured environment for individuals requiring extensive support.
The base rate covers around-the-clock supervision and assistance with activities of daily living. This bundled approach contrasts with home care, where services are itemized. Nursing homes, particularly skilled nursing facilities, provide continuous medical care and rehabilitation services for residents with significant health needs.
Despite the comprehensive nature of the base rate, additional charges can apply. These may include specific therapies not fully covered, certain medications, personal hygiene items, or specialized medical equipment. The level of care required also impacts the overall cost within a nursing home setting. Individuals needing more intensive medical interventions or specialized care for conditions like dementia may incur higher expenses due to increased resources and expertise.