Part of our guide: Long-Term Care Insurance: Costs, Options and Planning →
Health care providers increasingly recognize what the long-term care industry has long known: helping people receive care at home is what they prefer, and it can cost less than facility care. But home care isn’t cheap.
Key takeaways
- In 2025, in-home care cost a national median of $35 an hour, about $80,000 a year at 44 hours a week.
- Around-the-clock home care can cost more than a nursing facility.
- Modern LTC policies pay for home care plus care coordination, respite, homemaker services, caregiver training, and more.
Part-time home care is often more affordable than a facility. Round-the-clock home care can cost far more.
What home care costs
According to the CareScout 2025 Cost of Care Survey, the national median for in-home care was $35 an hour, or about $80,080 a year at 44 hours a week. Costs vary widely by location. Full-time or 24-hour care can exceed the roughly $129,600 annual median for a private nursing home room. See all 2025 cost figures.
Why home care is growing
Home-based care is widely seen as more humane and, for many needs, more affordable than institutional care. Most clients prefer it, and families feel more connected to the care.
How LTC policies pay
- Home health aides and personal care
- Care coordination services
- Respite care so family caregivers can take a break
- Homemaker services
- Caregiver training
- Funds for home modifications, medical alert systems, and durable medical equipment
These built-in benefits give families peace of mind, especially high-net-worth clients who want control over their care.
Frequently asked questions
How much does in-home care cost per hour?
The 2025 national median was $35 an hour, according to CareScout.
Is home care cheaper than a nursing home?
Part-time home care usually is. Full-time or 24-hour home care can cost more than a nursing home.
Does LTC insurance cover respite care?
Many policies include respite care benefits to give family caregivers a break.
Reviewed by Tim Fuller on 2026-09-25
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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