Why has Medical Cost Become the Divider for At-Home Healthcare, and What Can We Do About It?

Medical care in the United States has become a situation where the “haves” and “have nots” can yield wildly different experiences for patients. One of the most significant divisions comes with at-home healthcare for the elderly or disabled.?

The costs of at-home healthcare have risen exponentially ; meanwhile, access to quality at-home care has become limited due to location restrictions and staffing shortages. How can those in the medical field bridge this disparity and bring more people quality, affordable at-home care??

Cost and Accessibility?

The rapidly rising cost of living is driving up prices across the board, including at-home care. We live in a time of record-high inflation affecting every industry, and healthcare is no exception. In areas of the country where it costs more to live, such as San Francisco or New York City, home healthcare can be out of reach for many who need it most.?

Patients living in more rural areas, compared to urban ones, will also see a difference in affordability. The availability of home healthcare can be sparse in more rural areas of the country, driving up the cost due to supply and demand. When supply is low and demand increases, prices rise.?

State minimum wages can also drive up the cost of home healthcare, as agencies still need to cover administrative costs, supply costs, and workers' wages. In states with higher minimum wages, the cost of at-home care will be higher.?

Accessibility is an issue tied to affordability and location. Patients in rural areas already face a shortage of at-home health agencies and private caregivers. In addition, those that are available to provide care come at a higher cost. Rising costs are an issue for everyone, but it is especially dangerous and potentially life-threatening for people in desperate need of at-home care.?

How Do People Pay for At-Home Care?

Many people facing a need for at-home care, such as elderly and/or disabled patients, may find themselves woefully unprepared to tackle the issue of mounting cost and limited access. Educational and assistance services such as local ADRC (Aging and Disability Resource Centers) have experts on hand that can walk people through the often confusing process of securing at-home help. They can also point people towards resources to help cover costs.?

While there are several options available to help pay for at-home care, choosing the best option depends on a patient’s age, level of disability, as well as a number of other personal factors.?

Medicare: Medicare will cover some at-home healthcare if eligibility requirements are met. Patients must be completely homebound to receive Medicare coverage for their at-home health.

LTC Insurance: Long-term Care (LTC) insurance can be quite helpful in covering costs for at-home care, especially if one had thought ahead and purchased the insurance when they were younger. However, even if one is older and in need of at-home care, they can still secure LTC insurance in some instances.?

Medicaid: Medicaid coverage for at-home care can vary state by state.?

Veterans Benefits: Qualifying service members and veterans can access affordable at-home care services through the Department of Veterans Affairs.?

If patients and their families are looking to save money, other options are also available. For example, private caregivers can cost 20-30% less than an agency, though hiring a private caregiver can be a gamble. Unlike agencies who provide background checks and monitor their employees, private caregivers are not typically required to undergo such screenings. Those considering a private caregiver should do their due diligence and check the credentials of anyone they consider hiring.?

Several tax credits and deductions are also available for at-home healthcare. These credits can help ease the cost burden for yearly at-home healthcare needs.

Bridging the Gap

What can be done to help lower costs and bridge the divide in affordability and accessibility in home healthcare?

The first approach needs to be education. Many people are unprepared once the need for home healthcare arises because they are not properly educated on their options. Resources such as the ADRC can be invaluable in educating the public, but still need to be better funded and have their services be made more accessible to patients in rural areas.?

Furthermore, payment options need to be made more transparent, and with costs only expected to rise, people need to ensure they plan ahead for how they will cover payments for at-home care services. Long-term care insurance is not just a consideration for those of retirement age. The earlier a plan is put into place in case the need for at-home healthcare arises, the better.?

As the Baby Boomer Generation ages, the need for at-home healthcare will increase. By addressing disparities in cost and accessibility now, those of us in the healthcare industry can possibly stave off significant gaps in care that may come in the future.?