Money & Costs

How Much Does It Cost to Care for an Aging Parent?

Published October 31, 2026. Publisher: Family Caregiver Practical Guide.

When families first ask "how much will this cost?", they're usually hoping for one number. The honest answer is that it depends: on where your parent lives, how much help they need, what kind of care they choose, and what benefits they qualify for.

But "it depends" isn't very useful when you're trying to plan. So in this post, I'll share real national median costs from a major annual survey, explain what Medicare does and doesn't pay for, and walk you through a simple way to build a care budget for your own family.

Please note: This post is general information, not legal, financial, or medical advice. Costs vary widely by location. For your family's plan, get local quotes and talk with a financial professional or elder law attorney.

The Big Picture: What Care Costs Nationally

The CareScout Cost of Care Survey, conducted July through November 2025, collected more than 25,000 rates from long-term care providers across the country. Here are the national medians:

Source: CareScout Cost of Care Survey, 2025. Monthly in-home figure based on 44 hours per week.

Two things jump out. First, the costs are high. Second, they vary enormously by state. CareScout publishes state and local figures on its website, so look up your parent's area before you plan.

What Families Spend Out of Their Own Pockets

Paid care isn't the only cost. Family caregivers often spend their own money too. AARP's 2021 out-of-pocket cost study found that family caregivers spent an average of $7,242 a year on caregiving costs, about 26% of their income on average. Nearly eight in ten reported routine out-of-pocket expenses.

AARP's Caregiving in the U.S. 2025 report found that nearly half of caregivers report at least one negative financial impact from caregiving, and one-third have stopped saving money.

Common out-of-pocket costs include:

• Transportation, gas, parking, and travel to visit
• Groceries, household supplies, and meals
• Home modifications such as grab bars, ramps, or a shower chair
• Medical supplies and equipment
• Paid help to fill gaps
• Lost income from reduced hours or unpaid leave

What Medicare Does and Doesn't Pay For

This is the most common surprise for families. According to Medicare.gov:

• Medicare doesn't pay for long-term care, also called custodial care: help with everyday personal tasks like bathing, dressing, and using the bathroom. That's true at home, in the community, in assisted living, or in a nursing home.
• Medicare Supplement Insurance (Medigap) and most health insurance don't cover it either.
• Medicare may cover some skilled care, such as part-time skilled home health services or a limited stay in a skilled nursing facility after a qualifying hospital stay, when specific conditions are met. Check Medicare.gov or call 1-800-MEDICARE (1-800-633-4227) for the details that apply to your parent.

Medicare.gov notes that people may be able to get long-term care through Medicaid if they meet their state's eligibility requirements, or through private long-term care insurance.

Other Ways People Pay for Care

• Your parent's own income and savings, including Social Security, pensions, and retirement accounts.
• Medicaid, for people who meet financial and medical eligibility rules, which vary by state.
• Long-term care insurance, if your parent bought a policy. Read the policy for waiting periods and covered services.
• VA benefits, such as the VA's Aid and Attendance or Housebound benefits for eligible veterans and survivors.
• Home equity, such as selling the house or other options. Get independent financial advice first.
• Family contributions, ideally agreed and tracked in writing.
• Local programs through your Area Agency on Aging, such as meal programs, respite, or transportation.

To check what your parent might qualify for, try BenefitsCheckUp (benefitscheckup.org) from the National Council on Aging, your State Health Insurance Assistance Program (shiphelp.org), and the Eldercare Locator (eldercare.acl.gov or 1-800-677-1116).

Build Your Own Care Budget

Here's a simple monthly worksheet. Imagine a father who needs about 20 hours a week of in-home help, attends adult day health care twice a week, and has his daughter covering groceries.

For example, at the national median of $35 an hour, 20 hours a week works out to about $3,031 a month (20 × $35 × 4.33). Your local rate may be higher or lower.

Costs Families Often Forget

When families budget for care, they usually remember the big monthly number. The smaller costs are what catch them off guard:

• Extra charges in assisted living. Many communities charge more as care needs increase, and some charge separately for medication management, laundry, or transportation. Ask for a written list.
• Minimum hours for in-home care. Some agencies require a minimum number of hours per visit or per week. Ask before you plan a schedule.
• Moving costs. Movers, new furniture that fits a smaller space, and the cost of preparing a house for sale or rent can add up.
• Running two households. If your parent moves but the house isn't sold yet, taxes, utilities, insurance, and upkeep continue.
• Equipment and supplies. Grab bars, shower chairs, incontinence supplies, and mobility aids may not be covered.
• Your own costs. Travel to visit, lost work hours, and paid help for your own household while you're caregiving are real costs too.

Add a line in your budget for "unexpected." Even a rough cushion makes the plan more realistic.

Questions to Ask Before You Hire Help

• What is the hourly rate, and is there a minimum number of hours?
• Are weekend, holiday, or overnight rates different?
• If hiring through an agency: are caregivers employees, and who handles taxes and insurance?
• If hiring privately: have you talked with a tax professional about household employer responsibilities?
• What's the cancellation policy?

Tips for Keeping Costs Manageable

• Mix care types. A few hours of paid help plus an adult day program and family support may cost less than full-time care.
• Use free and low-cost services first. Meal programs, senior centers, and transportation services can fill gaps.
• Review your parent's Medicare plan each year during open enrollment, with help from SHIP if needed.
• Plan for Medicaid early if it may be needed. Rules about assets and transfers are complex, so talk with an elder law attorney.
• Track every expense, especially if siblings share costs.
• Protect the caregiver's finances. Before cutting work hours, ask your employer about leave and flexibility.

Frequently Asked Questions

Does Medicare pay for a home health aide?

Medicare may cover home health aide services only as part of a covered home health plan that includes skilled care, under specific conditions. It doesn't cover long-term custodial care. Check Medicare.gov for details.

How much does assisted living cost per month?

The 2025 national median was $6,200 a month, according to CareScout. Costs in your area may be very different.

Can my parent get paid help through Medicaid?

Many state Medicaid programs offer some home and community-based services for eligible people. Eligibility and services vary by state, so contact your state Medicaid office or Area Agency on Aging.

Are caregiving expenses tax-deductible?

Sometimes. Tax rules are complicated, so talk with a tax professional.

Key takeaways

• 2025 national medians: $35/hour for in-home help, $6,200/month for assisted living, $9,581/month for a semi-private nursing home room.
• Medicare doesn't pay for long-term custodial care.
• Family caregivers spend real money too; AARP found an average of $7,242 a year in 2021.
• Build a monthly budget, use local quotes, and check benefits early.

Plan the Money Side With Your Family

My book, When You're Caring for a Parent: A Practical Workbook for Adult Children, has fill-in pages for a money map, a monthly care budget, sibling contributions, and benefits checklists, so the whole family can see the same numbers.

This article is for general information only and is not legal, financial, or medical advice.

Sources

• CareScout, Cost of Care Survey 2025: https://www.carescout.com/cost-of-care
• Genworth/CareScout press release, 2025 Cost of Care Survey results: https://investor.genworth.com/news-events/press-releases/detail/1054/carescout-releases-2025-cost-of-care-survey-results
• AARP, 2021 Caregiving Out-of-Pocket Costs Study: https://www.aarp.org/pri/topics/ltss/family-caregiving/family-caregivers-cost-survey/
• AARP and National Alliance for Caregiving, Caregiving in the U.S. 2025 Executive Summary: https://doi.org/10.26419/ppi.00373.003
• Medicare.gov, Long-term care: https://www.medicare.gov/coverage/long-term-care
• Medicare.gov, Home health services: https://www.medicare.gov/coverage/home-health-services
• VA, Aid and Attendance and Housebound benefits: https://www.va.gov/pension/aid-attendance-housebound/
• BenefitsCheckUp (National Council on Aging): https://benefitscheckup.org
• SHIP: https://www.shiphelp.org
• Eldercare Locator: https://eldercare.acl.gov