For many families, understanding what home care costs is only part of the picture.
The next question is just as important: how do we pay for it?
It is a practical concern and one that comes up early in almost every family’s conversation. The good news is that most families have more funding options than they realize. Knowing what is available before care is urgently needed can make the entire process significantly less stressful.
This guide covers the most common ways Minnesota families fund in-home care. If you are still exploring what home care costs, our earlier guide on home care pricing in Minnesota is a helpful starting point.
Private Pay
Many families cover home care costs directly, drawing from savings, retirement income, or the proceeds from selling a family home. Private pay is the most flexible option available. It is not tied to eligibility criteria or lengthy application processes, and it allows families to start care on their own timeline without waiting for approvals.
For families who are able to manage it, private pay is often the most straightforward path to getting care started quickly.
Long-Term Care Insurance
If your loved one has a long-term care insurance policy, it may cover in-home care services. Policies vary significantly in what they cover, how benefits are triggered, and how much they pay out.
If you are not sure whether a policy exists, it is worth checking with family members or looking through financial documents. Many families discover a policy they had forgotten about.
A few things worth knowing before filing a claim:
- Benefits are typically triggered when a person needs assistance with a certain number of activities of daily living
- Most policies include an elimination period, a waiting period before benefits begin
- Coverage limits and daily benefit amounts vary widely depending on the policy
Reviewing the policy with an insurance professional or elder law attorney can help clarify exactly what is available and how to access it.
Veterans Benefits
Eligible veterans and their surviving spouses may qualify for VA benefits that help offset the cost of in-home care. The Aid and Attendance benefit is one of the most valuable and least known options available to veterans.
Aid and Attendance is a pension benefit that provides financial assistance to veterans who need help with daily activities. It is not limited to service-connected conditions, meaning a veteran does not need to have been injured in service to qualify.
Eligibility is based on military service history, financial need, and medical need. Because the application process can take time, families are encouraged to explore this option early rather than waiting until care is urgent.
The Minnesota Department of Veterans Affairs and local VSOs (Veterans Service Organizations) can provide free guidance on eligibility and the application process.
Minnesota State Programs
Minnesota offers several publicly funded programs that can help eligible seniors access home care support. These programs are administered through the state and individual counties, and eligibility is based on both financial and functional criteria.
Families who may qualify should be aware of the following options:
- Elderly Waiver (EW) — A Medicaid waiver program for seniors age 65 and older who meet nursing facility level of care criteria but wish to remain at home. The Elderly Waiver can cover a range of home and community-based services for eligible individuals. Learn more through the Minnesota Department of Human Services.
- Alternative Care (AC) Program — Designed for seniors who do not yet qualify for Medical Assistance but are at risk of needing nursing facility care. The AC Program provides funding for home and community-based services to help seniors remain safely at home. More information is available through the Minnesota Department of Human Services.
- CADI Waiver (Community Access for Disability Inclusion) — Available to individuals under 65 with qualifying disabilities who meet certain functional and financial criteria. The CADI Waiver supports home and community-based care as an alternative to institutional care. Details are available through the Minnesota Department of Human Services.
Eligibility for all three programs is determined through a county assessment process. Families can contact their county’s health and human services department to request a screening and learn more about next steps.
Symphony Senior Home Care is proud to accept clients through the Minnesota Elderly Waiver program. If you or your loved one has been approved for Elderly Waiver services or is currently in the application process, we encourage you to reach out. You can learn more about our waiver services here.
What If None of These Apply?
Not every family will qualify for publicly funded programs, and not everyone has long-term care insurance or veterans benefits. For families in that situation, private pay combined with thoughtful planning around hours and level of care is the most common approach.
Starting with a smaller number of hours and adjusting as needs change is a practical and manageable way to begin. Many families find that even a modest level of consistent support makes a meaningful difference in safety and quality of life.
Frequently Asked Questions
Does Medicare cover in-home care?
Medicare has limited coverage for home care. It may cover short-term skilled nursing or therapy services following a qualifying hospital stay, but it does not cover ongoing non-medical home care such as help with bathing, dressing, meal preparation, or companionship. Families are often surprised to learn this. Minnesota state programs like the Elderly Waiver are specifically designed to fill that gap for eligible seniors.
How do I find out if my loved one qualifies for the Elderly Waiver or Alternative Care Program?
Eligibility is determined through a county assessment process. Contact your county’s health and human services department to request a screening. The Minnesota Department of Human Services website provides program details and county contact information.
Can home care start before funding is approved?
Yes. Many families begin care on a private pay basis while a funding application is being processed. Starting care privately does not affect eligibility for state programs. A free consultation with a home care provider can help you understand your options while you navigate the funding process.
How long does it take to get approved for the Elderly Waiver?
Processing times vary by county and individual circumstances. Because approval can take weeks to months, families are encouraged to begin the application process as early as possible — ideally before care becomes urgent.
Is Aid and Attendance only for veterans who were injured in service?
No. Aid and Attendance is a pension benefit available to wartime veterans who need help with daily activities, regardless of whether the condition is service-connected. Surviving spouses of eligible veterans may also qualify. Contact the Minnesota Department of Veterans Affairs or a local VSO for a free eligibility review.
How to Get Started
Understanding your specific situation is the most important first step. Every family’s financial picture is different, and the right funding path depends on your loved one’s age, health status, care needs, and financial circumstances.
Symphony Senior Home Care works with families in White Bear Lake, Shoreview, Vadnais Heights, Maplewood, North St. Paul, and throughout the Twin Cities metro. We are happy to help families think through their options and connect them with the right resources.
We offer a free, no-obligation in-home consultation. If you would like to talk through what care might look like for your family, we are here to help.