How to Pay for Home Care in New Jersey: Insurance, Medicaid, and Private Pay Options

Call (908) 912-6342 — Free Home Care Benefits Review

One of the first questions families ask when a loved one needs care at home is: How are we going to pay for this? The good news is that there are more funding options than most families realize — and the right combination depends on your loved one’s financial situation, health needs, and eligibility. 24 HOUR Home Care NJ works with families across all 11 NJ counties to navigate payment options and access care quickly. Call (908) 912-6342 for a free in-home assessment and benefits review.

Private Pay: The Most Flexible Option

Private pay means paying for home care directly — without involving insurance, Medicaid, or government programs. It is the most common and most flexible way to fund home care in New Jersey. Private pay offers several distinct advantages:

• Immediate access — Care can begin within 24 to 48 hours with no prior authorization or waiting periods
• No hour restrictions — Choose exactly the hours your family needs, from a few weekly visits to 24-hour care
• Full caregiver selection — Work with your preferred agency and caregiver without insurance company restrictions
• No contracts — Adjust or discontinue services at any time
• Complete privacy — No reporting requirements or eligibility re-assessments

Private-pay home care in New Jersey typically ranges from $25 to $35+ per hour, depending on the level of care. Long-term home care arranged privately avoids Medicaid spend-down requirements and preserves more control for the family.

Long-Term Care Insurance (LTCI)

Long-term care insurance is one of the most valuable tools for funding home care — if your loved one has a policy. LTCI policies pay a daily or monthly benefit when the insured can no longer perform a specified number of Activities of Daily Living (ADLs) — typically two of six: bathing, dressing, eating, transferring, toileting, or continence. Most policies also cover cognitive impairment such as Alzheimer’s disease.

Key LTCI concepts for NJ families:

• Elimination period — The “deductible” period (typically 30–90 days) during which you pay out of pocket before benefits begin
• Daily/monthly maximum — The cap on what the policy will pay per day or month (e.g., $150/day or $4,500/month)
• Inflation protection — Policies with compound inflation riders pay significantly more than those without — important in a rising-cost environment
• Home care rider — Some older policies only cover nursing facility care; confirm your policy explicitly covers home care

Major LTCI carriers active in NJ include Genworth Financial, John Hancock, Mutual of Omaha, Transamerica, Unum, MedAmerica, and CNA. 24 HOUR Home Care NJ works directly with all major LTCI carriers and assists families with claims paperwork. Learn more in our dedicated guide: Long-Term Care Insurance and Home Care in NJ.

NJ Medicaid HCBS Waiver

For seniors and adults with disabilities who meet income and asset requirements, New Jersey Medicaid offers the Home and Community-Based Services (HCBS) waiver — a federal-state program administered by NJ Division of Medical Assistance and Health Services (DMAHS) that allows eligible individuals to receive home care services instead of entering a nursing facility.

NJ Medicaid HCBS waiver key facts:

• Eligibility is based on financial need (income and asset limits apply), medical necessity (nursing facility level of care), and NJ residency
• Services covered include personal care aides, home health aides, adult day services, respite care, and case management
• Wait lists can extend 12–24+ months in some NJ counties; applying early is essential
• Asset spend-down rules apply — consult an elder law attorney before transferring assets

Many families use private-pay home care while awaiting Medicaid approval — ensuring continuous, high-quality care without interruption. Call (908) 912-6342 to discuss a bridge care strategy.

VA Aid & Attendance Benefit

The VA Aid and Attendance benefit is a monthly pension supplement available to wartime veterans and surviving spouses who require assistance with daily activities. It is one of the most underutilized benefits available to NJ veterans — and one of the most valuable for funding home care.

2025 maximum monthly Aid & Attendance benefits:

• Veteran with a dependent spouse: ~$2,300/month
• Single veteran: ~$1,900/month
• Surviving spouse: ~$1,230/month

Eligibility requires wartime service (WWII, Korea, Vietnam, Gulf War, etc.), a VA-rated disability or age-related ADL impairment, and financial need. Benefits are tax-free and can be used to pay any licensed home care agency — including 24 HOUR Home Care NJ. We work with VA-accredited claims agents and elder law attorneys to help NJ families access this benefit. Call (908) 912-6342.

Reverse Mortgages for Home Care

A Home Equity Conversion Mortgage (HECM) — the federally-insured reverse mortgage — allows homeowners age 62 and older to convert a portion of their home equity into tax-free proceeds. The homeowner retains ownership, owes no monthly payments, and the loan is not repaid until the home is sold or the borrower permanently leaves. Proceeds can be received as a lump sum, monthly payments, a line of credit, or a combination.

Using a reverse mortgage to fund home care has several advantages:

• No out-of-pocket monthly payments reduce financial burden on fixed-income seniors
• A line of credit grows over time and can be drawn as care needs increase
• Allows aging in place — the original intention of reverse mortgage programs

Reverse mortgages are complex instruments. The National Institute on Aging recommends consulting a HUD-approved housing counselor before proceeding. This option is best suited for homeowners with significant equity and a plan to remain in the home long-term.

Life Insurance Conversion

Many families don’t realize that an existing life insurance policy can be converted into a stream of home care benefits — even if the policyholder is no longer insurable. Two primary mechanisms exist:

• Life settlement — Selling the policy to a third party for a lump sum greater than the cash surrender value, which can then fund home care
• Long-term care benefit plan — Converting the policy’s death benefit into a tax-free monthly benefit paid directly to a licensed home care agency, without selling the policy

This approach is particularly valuable when a policy’s premiums have become burdensome or when its death benefit is less urgent than immediate care funding. Work with a licensed life settlement broker and an elder law attorney to evaluate the best option. Call (908) 912-6342 — our care coordinators can connect you with NJ-based advisors who specialize in senior care financing.

Why NJ Families Choose 24 HOUR Home Care NJ

Whatever your funding source, 24 HOUR Home Care NJ makes accessing high-quality home care as straightforward as possible:

• Private pay accepted — No contracts, no minimums, transparent pricing
• All major LTCI carriers — Genworth, John Hancock, Mutual of Omaha, Transamerica, Unum, and more
• VA benefit compatible — We work with veterans and surviving spouses throughout New Jersey
• RN-supervised — Every care plan is designed by a Registered Nurse
• Licensed and insured — Every caregiver is a NJ Certified Home Health Aide
• All 11 NJ counties — View all service areas

We serve families throughout New Jersey: Union County, Essex County, Morris County, Middlesex County, Bergen County, Somerset County, Mercer County, Passaic County, Hunterdon County, Monmouth County, Ocean County.

Frequently Asked Questions: Paying for Home Care in NJ

Does Medicare cover home care in New Jersey?

Medicare covers skilled home health services (nursing, physical therapy, speech therapy) when ordered by a physician after a qualifying hospital stay and the patient is homebound. However, Medicare does not cover non-medical home care — such as bathing assistance, meal preparation, companionship, or personal care aide services — which is what most families need long-term. For ongoing non-medical home care, families typically use private pay, long-term care insurance, or the NJ Medicaid HCBS waiver. Call (908) 912-6342 to discuss your options.

What is the NJ Medicaid HCBS waiver for home care?

New Jersey’s Medicaid Home and Community-Based Services (HCBS) waiver — administered by NJ DMAHS — allows eligible low-income seniors and adults with disabilities to receive home care services instead of nursing facility placement. Eligibility is based on income, assets, medical need, and NJ residency. Wait lists can be long. For immediate, private-pay home care while awaiting Medicaid approval, call (908) 912-6342.

What is VA Aid and Attendance benefit for home care?

The VA Aid and Attendance benefit provides a monthly pension supplement to eligible wartime veterans and surviving spouses who require assistance with daily living activities. In 2025, the maximum benefit is approximately $2,300/month for a veteran with a dependent. The benefit can be used to pay for non-medical home care. Call (908) 912-6342 — our care coordinators can help connect your family with a VA-accredited benefits counselor.

Can a reverse mortgage pay for home care in NJ?

A Home Equity Conversion Mortgage (HECM) — the federally-insured reverse mortgage — allows homeowners 62+ to convert home equity into tax-free cash or a line of credit. The proceeds can be used for any purpose, including home care. There are no monthly payments required while the homeowner lives in the home. Consult a HUD-approved housing counselor before proceeding. Call (908) 912-6342 to discuss how reverse mortgage proceeds can fund a home care plan.

What is a life insurance conversion for home care funding?

Many life insurance policies can be converted to a long-term care benefit through a ‘life settlement’ or ‘living benefit rider.’ The policy’s death benefit is restructured to pay monthly benefits directly to a home care provider. This option is available even if the policyholder is uninsurable. A licensed life settlement broker can evaluate existing policies. Call (908) 912-6342 for guidance on connecting with NJ-based financial advisors who specialize in senior care funding.

How much does private-pay home care cost in New Jersey?

Private-pay home care rates in New Jersey typically range from $25 to $35+ per hour for companion and personal care services, depending on hours, care level, and the agency. Live-in care and 24-hour shift care are priced differently. 24 HOUR Home Care NJ offers transparent private-pay pricing with no contracts, no minimums, and no surprise fees. Call (908) 912-6342 for a personalized quote and free in-home assessment.