Home Health Care Insurance: What it Covers and Who Needs It
Home health care insurance helps cover services provided in the comfort of your own home during recovery from illness, injury or ongoing health needs. As more people choose to receive care at home rather than in a hospital or facility, understanding how this type of coverage works is becoming increasingly important. For many, the ability to heal and receive support in familiar surroundings can make a meaningful difference in their progress. Among other questions, this blog post answers what home health care insurance is, what it covers and how in-home care can support those that need it.
What Home Health Care Is and What It Is Not
Home health care is expensive. In fact, in 2024, the median hourly rate for a home health aide was $34.¹ With this in mind, an insurance plan to offset such costs could be financially beneficial. Still, it is important to distinguish what home health care is versus what it is not.
Home health care includes medical and supportive services provided in the home, such as nursing care, therapy and help with activities of daily living. This type of care is often designed to help individuals maintain independence and support them within their normal environment.
However, it is important to note that home health care is not the same as nursing homes or assisted living facilities, where care is provided 24/7 by rotating staff. Additionally, standard health insurance or major medical plans often do not cover all aspects of home health care, which is why supplemental insurance is an important option to consider.
Understanding what home health care includes, and what it does not, is the first step in making informed choices about coverage.
How Home Health Care Insurance Works
Once you understand the scope of home health care, the next question is how insurance can support it. Home health care insurance functions like many other supplemental health policies: you pay premiums, and benefits activate when illness, injury or recovery needs arise.
Coverage can include skilled services, such as:
- Nursing care
- Physical therapy
- Occupational therapy
- Speech therapy
Additional features may be prescription benefits, medical equipment, ambulance services and assistance with daily activities. Coverage varies by state, making it essential to carefully review policy options before selecting a plan.
By linking insurance coverage to home health care services, individuals gain both financial protection and peace of mind.
Skilled Care vs. Non-Skilled Care
A clear understanding of the types of care covered helps individuals choose the right policy. Skilled care is provided by licensed professionals and typically includes medical treatments or therapy needed during recovery from illness, injury or surgery.
Non-skilled care, on the other hand, focuses on personal assistance, including help with dressing, meal preparation and more.
Both types of care can be critical for safely remaining at home and policies may cover one or both, depending on the plan. Recognizing the difference may help ensure the plan’s effectiveness and accessibility.
Home Health Care Insurance vs. Long-Term Care Insurance
While home health care insurance and long-term care insurance share a common goal, helping individuals maintain independence, they do cover different settings and services.
Home health care insurance focuses primarily on care delivered in the home, while long-term care insurance may also include coverage for assisted living or nursing home facilities.
Identifying this distinction helps individuals match coverage to their circumstances and lifestyle. In some cases, short-term care may also be required, further emphasizing the importance of exploring all available options.
Medicare and Home Health Care Insurance: What’s the Difference?
Medicare provides health insurance primarily for people age 65 and older and certain younger individuals with disabilities. It may also cover some home health services when they are medically necessary and ordered by a physician. But this coverage is typically limited to short-term or intermittent skilled care, such as nursing services or therapy.
Home health care, by contrast, refers to the actual services delivered in the home, which can include both medical treatment and personal assistance with daily activities. Because Medicare generally does not cover long-term personal or custodial care, individuals may look to supplemental coverage to help pay for extended home health care needs.
Who Should Consider Home Health Care Insurance?
When it comes to your wellbeing, planning is crucial.
According to AARP (formerly the American Association of Retired Persons), 41% of U.S. adults aged 50 and older who are unsure whether their neighborhood will meet their needs and say they do not plan to ever leave their current home.2 This demonstrates that home health care is not just a remote possibility, but should be anticipated and prepared for.
But home health care is not limited to older adults; younger individuals recovering from illness or injury may also benefit. ManhattanLife’s Home Health Care insurance provides flexible coverage for individuals ages 45 to 89, offering financial support and assistance to reduce stress during recovery.
With a reliable plan in place, you can access both skilled and personal care as needed, ensuring safe and supportive recovery at home with loved ones that want nothing more than to see you well.
Learn more about our Home Health Care insurance on our product page.
For additional details on Short-Term Care, read our blog: Planning for Better: A Special Short-Term Care Q&A.
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Works Cited
1. Solving the Home Care Quandary. January 8, 2026. KFF Health News. https://kffhealthnews.org/news/article/new-old-age-home-care-alternatives-cooperatives-registries-training/
2. Building for the Future: Creating Homes and Communities for Aging Well. December 10, 2024. AARP. https://www.aarp.org/pri/topics/livable-communities/housing/2024-home-community-preferences/