Your Guide To Respite Care

Shawn Plummer, CRPC

Retirement Planner, Financial Advisor, Annuity Broker, and Insurance Agent

What is Respite Care?

Respite care provides temporary relief for primary caregivers, allowing you to take a much-needed break from the demands of caregiving. Whether it’s a few hours or days, respite care ensures that your loved one continues receiving the necessary support and attention while you recharge.

Types of Respite Care

  1. In-Home Respite Care
    • Personal Care Assistants: Professionals come to your home to assist with daily activities like bathing, dressing, and mobility.
    • Homemaker Services: Help with household chores such as cooking, cleaning, and grocery shopping.
  2. Out-of-Home Respite Care
    • Day Care Centers: Provide structured programs and social activities during the day.
    • Residential Care Facilities: Offer short-term stays in nursing homes or assisted living facilities, providing round-the-clock care.
    • Respite Camps: Specialized camps designed for individuals with specific needs, offering recreational activities in a safe environment.

Benefits of Respite Care

  • Social Interaction: Engaging with new people and activities promotes mental and emotional well-being for your loved one.
  • Reduces Caregiver Stress: Helps prevent burnout, giving you time to rest and rejuvenate.
  • Improves Health: Both you and your loved one benefit from a change of routine and professional care.
  • Enhances Relationships: Returning refreshed allows you to provide better care and strengthens your bond with your loved one.
how many hours of respite care are you allowed

Respite Care Cost Calculator

In-home respite care costs between $15 to $40 per hour. Adult daycare centers range from $25 to $100 per day, and residential facilities charge $100 to $300 per day. Financial assistance is available through insurance, Medicaid, and community programs.

How to Pay for Respite Care

1. Medicaid Waiver Programs

Key Benefit: Coverage for in-home and adult day services
✔ Covers both short-term and recurring respite
✔ Available in most states through Home and Community-Based Services (HCBS)
✘ Waitlists are common
✘ Eligibility requires financial and medical qualification

Who Needs It: Low-income individuals caring for Medicaid-eligible seniors or disabled family
Who Doesn’t: Higher-income households not qualifying for Medicaid

Also Consider: Applying early, as approvals can take months


2. Veterans Affairs (VA) Benefits

Key Benefit: Up to 30 days of respite care per year
✔ No out-of-pocket costs for qualifying veterans
✔ Includes in-home and inpatient options
✘ Must meet VA disability or service criteria
✘ Can involve long bureaucratic wait times

Who Needs It: Veterans or their caregivers
Who Doesn’t: Families without military service history

Helpful Add-On: VA Aid and Attendance benefit may increase monthly income for extra support


3. State-Funded Respite Care Vouchers

Key Benefit: Direct grants or vouchers for caregiver breaks
✔ Does not require Medicaid
✔ Funds can be used with approved providers
✘ Availability varies by state
✘ Annual funding may be limited

Who Needs It: Moderate-income caregivers ineligible for Medicaid
Who Doesn’t: Families in states without these programs

Tip: Contact your state’s Department of Aging or Family Services


4. Long-Term Care Insurance

Key Benefit: Pays for temporary care during covered events
✔ Often includes respite care provisions
✔ Reduces out-of-pocket burden
✘ Must have bought the policy before needing care
✘ Older policies may exclude respite

Who Needs It: Those already holding a policy
Who Doesn’t: Uninsured individuals or those with lapsed policies

Helpful Add-On: Consider a hybrid long-term care annuity if you still qualify medically


5. Life Insurance with Living Benefits or LTC Riders

Key Benefit: Access cash or pay directly for care
✔ Can advance death benefit to cover temporary care
✔ Some policies offer built-in LTC coverage
✘ Reduces final death benefit
✘ Not available on all life policies

Who Needs It: Policyholders looking for flexible, tax-efficient care funding
Who Doesn’t: Individuals without an existing cash value or LTC life insurance policy

Helpful Add-On: Ask about chronic illness riders when shopping for new policies


6. Out-of-Pocket with Tax Deductions

Key Benefit: May be deductible as a medical expense
✔ Can use flexible funding sources (cash, HSA, credit)
✔ Potential for tax savings over certain thresholds
✘ No upfront financial help
✘ Requires detailed receipts and itemization

Who Needs It: Higher earners who itemize deductions
Who Doesn’t: Standard deduction filers or those with minimal expenses

Also Consider: Use Health Savings Accounts (HSAs) or FSAs for tax-free payment


7. Nonprofits and Charities

Key Benefit: Free or sliding-scale respite services
✔ Local relief available, especially through Alzheimer’s or church groups
✔ No insurance or income limits required
✘ Availability is inconsistent
✘ May require proof of caregiving situation

Who Needs It: Caregivers facing financial hardship
Who Doesn’t: Families preferring professional, private care

Helpful Add-On: Check ARCH National Respite Network or local Area Agencies on Aging


8. Short-Term Annuities for Temporary Funding

Key Benefit: Convert a lump sum into guaranteed monthly income
✔ Designed to last 6 months to 5 years
✔ Preserves other assets
✘ Requires upfront investment
✘ Not ideal for very short breaks

Who Needs It: Individuals needing structured payments for planned respite periods
Who Doesn’t: Those without liquid assets to start an annuity

Also Consider: Use to bridge gap while waiting on Medicaid or VA approvals


9. Reverse Mortgages with Line of Credit

Key Benefit: Tap home equity to fund care
✔ Flexible draw for intermittent or extended respite
✔ No repayment until you move or sell
✘ Reduces future inheritance
✘ Home must be primary residence

Who Needs It: Seniors with high home equity and low cash flow
Who Doesn’t: Renters or homeowners with little home equity

Helpful Add-On: Pair with long-term care riders or annuities for a comprehensive plan

How does respite care work

How Many Hours of Respite Care Are You Allowed?

  • Medicaid Programs: Often offer 20 to 40 hours per month.
  • Insurance Coverage: Private insurance plans may cover 10 to 20 hours per week.
  • Veteran Affairs (VA) Benefits: Eligible veterans can receive up to 30 days of respite care per year.
  • Non-Profit Organizations: Some provide a limited number of free hours annually.

Medicare Coverage for Respite Care

Medicare offers limited coverage under the hospice benefit, covering up to five days of respite care at a time. This benefit can be used multiple times, with a reasonable period between each stay.

Final Thoughts: Find the Best Way to Pay for Respite Care

Respite care offers much-needed relief for caregivers, but the costs vary widely depending on the type of care and length of stay. Whether through Medicare, Medicaid, VA benefits, insurance, or an annuity, there are multiple ways to cover the cost.

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Questions From Our Readers

Who pays for respite care?

The payment for respite care varies. Insurance, Medicaid, Medicare, or out-of-pocket payments can cover it. Each case depends on the individual’s insurance plan, government assistance eligibility, and respite care type needed.

How many hours of respite care are you allowed?

Hours vary based on individual care plans and payer policies.

Does Medicaid pay for respite care?

Yes, Medicaid often covers respite care for eligible individuals.

Does insurance cover respite care?

Some insurance plans do cover respite care, but coverage varies.

Does Medicare cover respite care?

Medicare covers temporary respite care under hospice benefits for eligible patients.

Does the state pay for respite care?

Some states offer programs that cover respite care costs through Medicaid waivers or state-funded programs. Eligibility and coverage vary by state, so it’s essential to check with your state’s health department or Medicaid office for specific details and requirements.

How long can respite care last?

From a few hours to weeks, depending on program. For example, Medicaid may cover short stays up to 14 days.

Shawn Plummer, CRPC

Retirement Planner, Financial Advisor, Annuity Broker, and Insurance Agent

I am a licensed Retirement Planner (CRPC), insurance agent, financial advisor, annuity broker, and former financial trainer with more than 18 years of hands-on experience in annuities and insurance. My National Producer Number (NPN) is 15524738. I spent 12 years training financial advisors nationwide on annuity, insurance, and retirement planning strategies, in addition to 18 years of direct field experience selling annuities and insurance products, helping clients protect their savings and secure reliable retirement income.

I have been quoted in Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, LegalZoom, U.S. News & World Report, Women’s Health Magazine, Forbes, and many other leading publications.

I am also the founder of The Annuity Expert, an independent online insurance agency and annuity broker serving consumers across the United States. Through this platform, my team and I help Americans remove the guesswork from retirement planning and compare insurance solutions to find the strongest value at the most competitive rates. I want to see you get the best products at the lowest prices.

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