What’s The Difference Between Home-Based Care, Community-Based Care, And Facility-Based Care?

Shawn Plummer

CEO, The Annuity Expert

As we grow older, we may need additional support and care to maintain our independence and quality of life. When it comes to elderly care, there are several options available, including home-based care, community-based care, and facility-based care. Each type of care offers unique advantages and disadvantages; choosing the right one for yourself or a loved one can be challenging. This guide will explore the differences between these three types of care, their pros and cons, and how to pay for them while saving money.

Home-Based Care

Home-based care involves receiving care and assistance from a caregiver in your own home. This type of care is ideal for seniors who want to maintain their independence and stay in their homes for as long as possible. Here are some pros and cons of home-based care:


  • Comfortable and familiar environment: Seniors can remain in the comfort and familiarity of their homes, which can be reassuring and improve their overall well-being.
  • Individualized care: Home-based care offers personalized and one-on-one attention, ensuring that seniors receive the exact level of care they need.
  • Cost-effective: Home-based care is generally less expensive than facility-based care.


  • Limited services: Home-based care may not offer the same range of services as facility-based care, such as medical care and therapy services.
  • Caregiver availability: Finding a reliable and qualified caregiver may be challenging, and the availability of caregivers may be limited.
  • Isolation: Seniors who receive home-based care may experience social isolation and loneliness if they cannot leave their homes or engage in social activities.

Community-Based Care

Community-based care involves receiving care and assistance from a network of care providers and volunteers within the local community. This type of care is ideal for seniors who want to remain active and engaged in their communities while receiving the care they need. Here are some pros and cons of community-based care:


  • Social engagement: Community-based care offers seniors opportunities to engage with other seniors and community members, reducing the risk of social isolation and loneliness.
  • Various services: Community-based care often offers a wide range of services, including medical care, therapy, and social activities.
  • Affordable: Community-based care is generally more affordable than facility-based care.


  • Limited individualized attention: Seniors may not receive the same level of personalized attention as home- or facility-based care.
  • Lack of consistency: Seniors may receive care from different providers or volunteers, leading to inconsistent care.
  • Limited access: Community-based care may not be available in all areas or may have limited availability, depending on the resources in the local community.

Facility-Based Care

Facility-based care involves living in a care facility, such as a nursing home or assisted living facility, and receiving care and assistance from trained staff. This type of care is ideal for seniors who require around-the-clock care and support. Here are some pros and cons of facility-based care:


  • 24/7 care and support: Seniors can access care and support 24/7, ensuring their needs are always met.
  • Medical care and therapy services: Facility-based care offers on-site medical care and therapy services, which can benefit seniors with complex medical needs.
  • Social engagement: Seniors can engage with other residents and participate in social activities.


  • Loss of independence: Seniors may feel that their independence and control over their lives are diminished when they move to a care facility.
  • Expensive: Facility-based care is generally the most expensive, which can quickly add up over time.
  • Limited freedom: Seniors may have limited freedom and flexibility regarding their daily routines and activities.
What'S The Difference Between Home-Based Care, Community-Based Care, And Facility-Based Care

Paying for Care Services

Regardless of the type of care you or a loved one chooses, paying for these services can be a significant financial burden. However, there are several options available to help you save money and cover the costs of care:

  • Medicare and Medicaid: Medicare and Medicaid are federal programs that offer health insurance and financial assistance for eligible seniors.
  • Veterans benefits: If you or a loved one is a veteran, you may be eligible for VA benefits, which can help cover care costs.
  • Long-term care insurance: Long-term care insurance is a type of insurance that can help cover the costs of care services.
  • Reverse mortgage: If you own your home, you may be able to use a reverse mortgage to access the equity in your home and pay for care services.

Next Steps

Finding the correct type of care for yourself or a loved one can be daunting. With so many different types of care, associated pros and cons to each, and tricky price tags to navigate, it can feel like an overwhelming decision. Fortunately, there are plenty of options available that you can use to help finance these costs, including government programs, insurance plans, and reverse mortgages. Making an informed decision with all these factors is essential in ensuring you or your loved one gets the care they need without draining your bank account. We understand this topic can be confusing, and fortunately, our team of experts is here to offer guidance every step of the way! So feel free to ask questions or request a quote today – we’re always here to help.

Home-Based Care, Community-Based Care, And Facility-Based Care

Frequently Asked Questions

What are the benefits of home-based care over community-based or facility-based care, and vice versa?

Benefits of home-based care: Convenience, personalized care, lower cost. Benefits of community or facility-based care: Access to specialized services and resources, social interaction, and skilled care.

Can a person receive home-based and community-based care simultaneously, or are they mutually exclusive?

Yes, a person can receive both home-based care and community-based care at the same time.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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