With Austin-area home care running $30–$40 per hour, the hardest part of arranging care usually isn't finding a caregiver — it's figuring out how to pay for it. The good news: most families don't pay entirely out of pocket.
If your parent bought a long-term care (LTC) policy years ago — even a small one — dig it out now. Most LTC policies cover in-home care, not just nursing homes, and many families don't realize a policy exists until they're sorting through paperwork. Look for the daily benefit amount and the elimination period (the number of days you pay out of pocket before benefits begin). We help families complete the care documentation insurers require, and in many cases we can invoice the insurer directly.
Wartime veterans and their surviving spouses may qualify for a monthly, tax-free pension specifically meant to pay for help with daily activities. In 2026 it pays up to $2,424/month for a single veteran, $2,874/month for a married veteran, and $1,558/month for a surviving spouse — enough to fund 15–20 hours of professional care each week. Most families have never heard of it. See our full guide to VA benefits for home care in Texas.
For seniors with limited income and assets, Texas's STAR+PLUS program can pay for personal care at home as an alternative to a nursing facility. Eligibility rules are strict and the application takes time, so start early. Even if your parent doesn't qualify today, a Medicaid planning attorney can sometimes restructure finances so they qualify later without impoverishing a spouse.
An existing life insurance policy can sometimes be converted into a long-term care benefit account, or sold in a "life settlement" for a lump sum that funds care. This makes sense mainly for policies your family was considering letting lapse anyway — talk to a fee-only financial advisor before touching a policy.
For a senior who owns their Austin-area home — where equity has grown substantially over the past decade — a HECM reverse mortgage or a home equity line can turn that equity into monthly care funding while they continue living in the house. This is a serious financial decision with real trade-offs for heirs, so involve the whole family and an independent counselor. HUD requires counseling for reverse mortgages for good reason.
When care is medically necessary — documented by a doctor's care plan — home care costs are generally deductible as medical expenses once total medical costs exceed 7.5% of adjusted gross income. If you pay more than half of a parent's support, you may be able to claim these expenses even if you aren't the one receiving care. A CPA who works with caregiving families can often recover thousands of dollars a year.
Most Austin families use some private pay, but the smart ones size the schedule to the actual need rather than defaulting to round-the-clock coverage. A well-designed 20-hour week — mornings for bathing and dressing, a mid-day check-in, evening meal help — often delivers most of the safety benefit at half the cost. That's exactly the kind of care plan we build in our free assessment.
The most common real-world arrangement isn't one funding source — it's two or three stacked: Aid & Attendance plus a small LTC policy plus a family contribution, for example. Curious what home care actually costs before you dig into funding? Start with our Austin home care cost guide, and our guide to what Medicare does and doesn't cover.
No — Original Medicare covers short-term skilled home health after illness or hospitalization, not ongoing help with bathing, dressing, meals, or supervision. See our full Medicare guide.
Most Austin-area agencies bill $30–$40 per hour depending on the level of care. See our Austin cost guide for schedules and monthly examples.
Under some Medicaid programs — like STAR+PLUS with consumer-directed services — certain family members can be paid caregivers. The rules exclude spouses in most cases.
Applications commonly take several months, but benefits are paid retroactively to the application date — another reason to start early.