Understanding the Cost

How to Pay for Adult Day Care

Adult day care is the most affordable form of professional senior care, and there are more ways to pay for it than most families realize. Here's a complete guide to costs, coverage, and financial assistance options.

Best Value
Adult Day Care ~$98/day
Home Care ~$200/day
Assisted Living ~$388/day

$0

Adult Day Care / Month

$0

Home Health Aide / Month

$0

Assisted Living / Month

$0

Nursing Home / Month

Cost Breakdown

The Cost of Adult Day Care

The national median cost of adult day care is approximately $2,058 per month (about $98 per day), according to the Genworth Cost of Care Survey.

That makes it significantly less expensive than other forms of professional care:

Care Type Monthly Cost Annual Cost
Adult Day Care $2,058 $24,696
Home Health Aide $6,292 $75,504
Assisted Living Facility $5,511 $66,132
Nursing Home (Semi-Private) $8,669 $104,028
Nursing Home (Private Room) $11,642 $139,704

Many families are surprised to learn that the cost of 5 days/week of adult day care is less than 2 days/week of a home health aide.

Costs vary significantly by location. Adult day care in a major metro area may cost more than in a rural area, but the relative savings compared to other care types holds true across the country.

What's typically included

  • All daytime supervision and care
  • Meals and snacks
  • Planned activities and programs
  • Basic health monitoring and medication management
  • Personal care assistance

What may cost extra

  • Transportation (though many centers include it or offer it at low cost)
  • Specialized therapies (physical, occupational, speech)
  • Extended hours or weekend programs
  • Specialized memory care programming
Payment Options

Ways to Pay for Adult Day Care

There are several programs and options that can help cover the cost. Here's what you need to know about each one.

Payment Option

Medicaid

Medicaid is the single largest funder of adult day care services in the United States. If your loved one qualifies, Medicaid can cover most or all of the cost.

How it works

  • Coverage is administered at the state level, so eligibility and coverage vary.
  • Most states cover adult day care through Home and Community-Based Services (HCBS) waivers.
  • Some states include it as a standard benefit; others require enrollment in a waiver program.

Who qualifies

  • Eligibility is based on income and assets. Limits vary by state.
  • Many states have expanded eligibility through Medicaid Aged, Blind, and Disabled (ABD) programs.
  • Some states allow a "spend down," where medical expenses reduce countable income.

What to do

Contact your state Medicaid office or your local Area Agency on Aging to ask about adult day care coverage. The center you're considering can often help navigate this process.

Payment Option

VA Benefits

If your loved one is a veteran (or the surviving spouse of a veteran), the Department of Veterans Affairs offers several programs that can help pay for adult day care.

Aid and Attendance (A&A) Pension

A monthly benefit for veterans and surviving spouses who need help with daily activities. Can be used to pay for adult day care. To qualify:

  • The veteran must have served during a wartime period
  • They must have a medical need for assistance with daily activities
  • Income and asset limits apply, though more generous than Medicaid

VA Adult Day Health Care (ADHC)

The VA operates its own adult day care programs at some VA medical centers. These are free for eligible veterans and provide medical care, rehabilitation, and social activities. Availability is limited to certain locations.

Veteran-Directed Care Program

This program gives eligible veterans a budget to purchase their own care services, including adult day care. The veteran (or their representative) manages the budget with support from a VA-partnered agency.

What to do

Contact your local VA medical center or call the VA Caregiver Support Line at 1-855-260-3274. You can also visit va.gov to explore eligibility for these programs.

Payment Option

Long-Term Care Insurance

If your loved one purchased a long-term care insurance policy, it likely covers adult day care. Most policies do.

Does the policy cover adult day services?

Most policies issued in the last 20 years do, but confirm the specific wording. Look for terms like "adult day care," "adult day services," or "community-based care."

What's the daily or monthly benefit amount?

The policy will pay up to a set amount per day or month. Compare this to the cost of the center you're considering.

Is there an elimination period?

Most policies require a waiting period (often 30-90 days) before benefits kick in. You'll pay out of pocket during this period.

What triggers benefits?

Most policies require that the insured person needs help with 2 or more Activities of Daily Living (ADLs) such as bathing, dressing, eating, transferring, toileting, or continence, or has a cognitive impairment.

What to do

Call the insurance company listed on the policy and ask specifically about adult day care coverage. Have the policy number handy. The adult day care center's billing team can often help coordinate with your insurer.

Payment Option

Medicare

Medicare does not generally cover adult day care. This is one of the most common misconceptions families encounter.

However, there are limited exceptions:

Medicare Advantage (Part C) Plans

Some Medicare Advantage plans include adult day care as a supplemental benefit. Check your specific plan or call the plan's member services number.

PACE (Program of All-Inclusive Care for the Elderly)

PACE programs serve people who are 55+, live in a PACE service area, and need a nursing-home level of care. PACE includes adult day care as part of a comprehensive package. For people who qualify for both Medicare and Medicaid, PACE is often free. Those with Medicare only may have a monthly premium.

What to do

If your loved one has a Medicare Advantage plan, call the plan to ask about adult day care coverage. If they might qualify for PACE, search for PACE programs in your state at npaonline.org.

Ready to explore options near you?

Search our directory to find adult day care centers in your area. Each profile includes information about accepted payment methods.

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Additional Resources

Other Ways to Help Cover the Cost

State and Local Programs

Many states and counties offer funding for adult day care through:

  • Older Americans Act (OAA) programs, administered through your local Area Agency on Aging
  • State-funded caregiver support programs. Many states offer respite care grants or vouchers.
  • Social Services Block Grants. Some states use these funds for adult day services.

Contact your local Area Agency on Aging (use the Eldercare Locator at eldercare.acl.gov or call 1-800-677-1116) to find out what's available in your area.

Tax Benefits

Dependent Care Tax Credit

If your loved one is a dependent who lives with you, and you use adult day care so you can work, you may be able to claim the Dependent Care Tax Credit (up to $3,000 in expenses for one dependent).

Medical Expense Deduction

If adult day care is medically necessary (as documented by a physician), the cost may qualify as a deductible medical expense if your total medical expenses exceed 7.5% of your adjusted gross income.

Consult a tax advisor to determine whether these benefits apply to your situation.

Sliding Scale Fees

Some adult day care centers, especially nonprofit centers, offer sliding scale fees based on family income. Ask the centers you're considering whether they offer reduced rates or financial assistance.

Nonprofit and Community Funding

Some centers receive grants from local foundations, United Way, or community organizations that allow them to subsidize costs for families who need help. This isn't widely advertised. You typically need to ask.

Real-World Examples

Putting It Together

Most families use a combination of sources to pay for adult day care. A common scenario might look like:

Example 1
  • 1 Medicaid covers 3 days per week
  • 2 Family pays out of pocket for 2 additional days
  • 3 Long-term care insurance reimburses a portion of the family's share
Example 2
  • 1 VA Aid & Attendance covers the monthly cost
  • 2 The center provides transportation at no additional charge

The important thing to know: adult day care is almost always more affordable than families expect, and there are more payment options than most people realize. Don't rule it out on cost before you've explored what's available.

Start with the center.

When you find a center you're interested in, ask their admissions team about payment options. Good centers are experienced at helping families navigate Medicaid applications, VA claims, and insurance coordination. They deal with this every day and can often point you to resources you wouldn't find on your own.

Find a Center and Ask About Payment Options

Browse adult day care centers near you. Each profile includes information about accepted payment methods.

Continue Your Research

Your next step

Every family’s journey is different. These guides can help you move forward with confidence.