How to Pay for Senior Home Care in Illinois: A Complete Guide for Families

"Starting the conversation early makes every funding option easier to navigate."

When a parent or loved one needs help at home, one of the first questions families ask is: How will we pay for this? The good news is that Illinois families have more options than they may realize. From state Medicaid programs to veterans' benefits to community grants, there are meaningful resources available to help cover the cost of home care — you just need to know where to look.

This guide walks you through the most common funding sources for senior home care in Illinois, so you can make informed decisions for your family without unnecessary financial stress.

Understanding the True Cost of Home Care in Illinois

Before exploring payment options, it helps to understand what you're working with. According to a 2024 Genworth Cost of Care Survey, the median cost of home health aide services in Illinois is approximately $27 per hour, or roughly $4,300 per month for 40 hours of weekly care. For families needing more intensive support — such as daily personal care, medication management, and companionship — costs can climb significantly higher.

But out-of-pocket costs don't have to be the only answer. Here are the primary ways Illinois families fund senior home care.

1. Illinois Medicaid: The Home Services Program (HSP)

"HSP-funded home care helps seniors stay in their own home."

For seniors who qualify financially, Illinois Medicaid's Home Services Program (HSP) — administered by the Illinois Department of Human Services — is the most robust source of home care funding in the state. The program covers personal care, homemaker services, and in some cases skilled nursing or therapy.

To qualify, seniors must:

• Be 60 years of age or older (or have a qualifying disability)

• Meet Illinois Medicaid income and asset limits

• Require care to remain safely at home rather than moving to a nursing facility

Illinois has made significant investments in home and community-based care. According to the Illinois Department on Aging, the state served over 51,000 older adults through community care programs in fiscal year 2023 — one of the highest enrollment figures in the program's history. If your loved one receives SSI or has limited income, they may qualify without needing to spend down assets.

To apply, contact the Illinois Department of Human Services or your local Area Agency on Aging. A care coordinator will conduct an in-home assessment to determine eligibility and match services to your loved one's needs.

2. Medicare: What It Covers (and What It Doesn't)

Many families assume Medicare will cover ongoing home care — but Medicare's home health benefit is more limited than most people expect. Medicare Part A and Part B do cover short-term, medically necessary home health services, including:

• Skilled nursing visits (wound care, injections, monitoring)

• Physical, occupational, or speech therapy

• Part-time home health aide services — but only when tied to skilled care

Medicare does not cover custodial home care — things like bathing assistance, dressing, meal preparation, and companionship when a skilled medical need is not present. This is the type of care most seniors need most often.

If your loved one was recently discharged from a hospital or skilled nursing facility, Medicare may cover a temporary period of home health services. After that, families typically need to transition to Medicaid, private pay, or other funding sources.

3. Veterans Benefits

Illinois is home to over 630,000 veterans, according to the U.S. Department of Veterans Affairs — and many of them are eligible for home care benefits they don't know about.

The VA offers several programs that can help cover senior home care costs:

• Aid & Attendance Benefit: A supplemental pension for veterans (and surviving spouses) who need help with daily activities. This benefit can provide up to $2,300 per month for a veteran and spouse — funds that can be used toward home care costs.

• VA Home Health Aide Program: Direct home health aide services provided through the VA for eligible veterans with service-connected disabilities.

• Veteran-Directed Care: A program that gives veterans a monthly budget to hire and manage their own home care workers, including family members in some cases.

Navigating VA benefits can be complex. Illinois has County Veterans Service Officers (CVSOs) available throughout the state to help families apply at no cost.

4. Long-Term Care Insurance

If your loved one purchased a long-term care insurance policy — often done years or decades ago — now is the time to review it. Many policies cover home care services directly, including personal care aides, adult day programs, and homemaker support.

Policies vary significantly. Key things to check:

• Elimination period: How many days of care must be paid out of pocket before benefits begin (typically 30–90 days)

• Daily or monthly benefit amount: The maximum the policy will pay per day or month

• Inflation protection: Whether benefits have kept pace with rising care costs

• Benefit triggers: What conditions must be met to activate benefits (usually needing help with 2+ ADLs)

If you're unsure whether a policy covers home care or how to file a claim, a geriatric care manager or elder law attorney can help you review the policy terms.

5. Illinois Community Care Program (CCP)

The Community Care Program (CCP), managed by the Illinois Department on Aging, helps older adults who are Medicaid-eligible or at risk of nursing home placement to remain in their homes. Through CCP, eligible seniors can receive:

• In-home care (homemaker and personal assistant services)

• Adult Day Services, including programs like our Adult Day Care Program

• Emergency Home Response systems

The CCP is coordinated through your local Area Agency on Aging (AAA). Illinois has 13 AAAs across the state, and they can connect families with services quickly — often within a few days of an assessment.

6. Private Pay and Family Contributions

Many families fund home care through a combination of the senior's own income (Social Security, pension, retirement savings) and family contributions. While this is often a last resort after exploring public programs, it provides maximum flexibility in choosing a provider and customizing the level of care.

A few strategies families use to make private pay more sustainable:

• Pooling family resources: Siblings or adult children contributing equally to care costs

• Home equity: A reverse mortgage or home equity line of credit can fund care while allowing the senior to remain in their home

• Bridge funding: Using savings to pay while a Medicaid or VA benefits application is pending

7. SHIP and Other Community Resources in Illinois

Illinois's Senior Health Insurance Program (SHIP) offers free, unbiased counseling to help seniors understand their Medicare and Medicaid coverage options. SHIP counselors — available statewide — can help families identify gaps in coverage and find programs they may be missing.

According to the AARP, families who work with benefits counselors find an average of $3,000 in additional benefits per year that they were not previously receiving. It's worth making the call.

Making the Right Choice for Your Family

Navigating home care funding is rarely simple — but you don't have to figure it out alone. At Universal Metro Aging Services (UMAS), our care coordinators help Illinois families understand their options and connect with the right programs. Whether your loved one qualifies for Medicaid, veterans' benefits, or community programs, we'll help you find a path forward.

Our home care services are designed to keep seniors safe, healthy, and connected — and our team has years of experience working with Illinois funding programs.

Ready to explore your home care funding options?

Contact UMAS today for a free consultation. Our care team will review your situation, explain your funding options, and help you get started with the right level of care — without the confusion.

📞 Call us or visit umasinc.com/home-care to schedule your free consultation.

Frequently Asked Questions

Does Medicare pay for home care aides in Illinois?

Medicare only covers home health aide services when they are tied to a skilled medical need (like skilled nursing or therapy) and the care is medically necessary. It does not cover custodial or personal care services on their own, such as bathing, dressing, or meal preparation.

What is the Illinois Home Services Program and who qualifies?

The Illinois Home Services Program (HSP) is a Medicaid-funded program that pays for personal care and homemaker services for eligible seniors and individuals with disabilities. To qualify, you must meet income and asset requirements, be 60+ years old (or have a disability), and need care assistance to remain safely at home.

Can veterans get free home care in Illinois?

Eligible veterans may receive home care through VA programs at low or no cost. The Aid & Attendance benefit, VA Home Health Aide Program, and Veteran-Directed Care program are key options. Illinois County Veterans Service Officers can help families apply at no charge.

What does long-term care insurance cover for home care?

Long-term care insurance policies often cover personal care aides, homemaker services, adult day programs, and other home-based care. Coverage depends on your specific policy — check the benefit triggers, elimination period, and maximum daily benefit amounts in your policy documents.

How do I find home care funding help in Illinois?

Start with your local Area Agency on Aging, which can connect you with the Community Care Program, Medicaid enrollment support, SHIP counselors, and other local resources. You can also contact UMAS directly — our team helps Illinois families navigate funding options every day.

Sources: Illinois Department on Aging (2023 Annual Report); Genworth Cost of Care Survey 2024; U.S. Department of Veterans Affairs, Illinois State Profile 2023; AARP Home Care Research Center.