Illinois families can pay for home care through Medicaid waiver programs like the Community Care Program (CCP), VA benefits such as Aid & Attendance, long-term care insurance, and private pay. Medicare covers short-term skilled home health care only, it does not pay for ongoing personal or companion care.

When a parent or spouse starts needing help at home, the first question most families ask isn’t what kind of care, it’s how are we going to pay for it? Illinois offers more funding pathways than almost any other state, from Medicaid waiver programs to veterans’ benefits to free counseling services that help you find money you didn’t know existed.

This guide breaks down every major way to pay for home care in Illinois, who qualifies, and how to apply.

1. Illinois Medicaid Waiver Programs

For families with limited income and assets, Medicaid is the single largest source of home care funding in Illinois. Rather than paying for nursing home placement, Illinois operates several “waiver” programs that redirect Medicaid dollars toward keeping seniors safely in their own homes. For a closer look at income and asset limits, see our guide on does Medicaid pay for in-home care in Illinois.

The Community Care Program (CCP)

The Community Care Program, administered by the Illinois Department on Aging (IDOA), is the state’s flagship in-home care program for adults 60 and older. It currently serves more than 150,000 older adults statewide and is designed specifically to help seniors who are at risk of nursing home placement remain at home instead, at a fraction of the cost to the state and with far better quality of life for the senior.

CCP can cover:

• In-home services: help from a trained homemaker/personal assistant with bathing, dressing, meal preparation, light housekeeping, laundry, and errands
• Adult day services: supervised daytime programs that provide social engagement and give family caregivers a break
• Emergency home response systems: 24-hour medical alert devices connected to a response center

Who qualifies for CCP? Applicants must be:

• Age 60 or older
• An Illinois resident and U.S. citizen or legal resident
• Assessed as needing help with activities of daily living (measured through a “Determination of Need” assessment)
• Under the program’s asset limit (non-exempt assets: your home, car, and personal belongings generally don’t count)

You do not have to be enrolled in Medicaid to receive CCP services, though applicants are typically asked to apply for Medicaid as part of the process.

How to apply: Contact your local Case Coordination Unit (CCU) through the Illinois Department on Aging, or call the Senior HelpLine at 1-800-252-8966. A care coordinator will schedule an in-home assessment, determine eligibility, and build a care plan. Your local Area Agency on Aging (Illinois has 13 covering the entire state) can also connect you directly.

The Home Services Program (HSP)

For adults under 60 with disabilities, Illinois offers the Home Services Program (HSP) through the Department of Human Services. This Medicaid-funded home and community-based services (HCBS) waiver covers personal assistant services, homemaker help, and in some cases skilled nursing, with the same goal of preventing unnecessary institutionalization. Eligibility is based on disability status, care needs, and Medicaid financial limits.

2. Medicare: What It Covers and What It Doesn’t

Medicare does not pay for ongoing personal care, companion care, or custodial care. If your mother needs daily help with bathing, dressing, meals, and companionship, the kind of care most seniors need, Medicare will not cover it.

What Medicare does cover is skilled home health care: short-term, medically necessary services ordered by a doctor, typically after a hospital stay or change in condition. That includes:

• Skilled nursing visits (wound care, injections, health monitoring)
• Physical, occupational, or speech therapy
• Part-time home health aide services, but only while you’re also receiving skilled nursing or therapy

Once the skilled need ends, Medicare’s home health benefit ends with it. That’s the point where most Illinois families transition to the Community Care Program, VA benefits, long-term care insurance, or private pay.

Understanding this distinction early saves families from a painful surprise later. If you’re unsure what your Medicare plan covers, Illinois’ free SHIP counseling program (covered below) can walk you through it.

3. Veterans Benefits

Illinois is home to more than 600,000 veterans, and many are entitled to home care benefits they’ve never claimed.

VA Aid & Attendance

The Aid & Attendance benefit is a monthly pension supplement for wartime veterans and their surviving spouses who need help with daily activities like bathing, dressing, or eating. As of the current VA cost-of-living adjustment (effective December 1, 2025), the maximum monthly benefit ranges from roughly $1,558 for a surviving spouse with no dependents up to $2,874 or more for a married veteran, depending on marital and dependent status, because the VA pays the difference between that cap and your countable income, actual payments vary by household. The net worth limit for eligibility is currently $163,699 (through November 30, 2026). See current VA pension rate tables for the exact figures that apply to your situation.

To qualify, the veteran generally must have served at least 90 days of active duty with at least one day during a wartime period, meet income and net worth limits, and demonstrate a medical need for assistance. For a more detailed breakdown of amounts and eligibility, see how much the VA pays for in-home care.

*Effective December 1, 2025 (current VA cost-of-living adjustment). Actual payment is the difference between this cap and your countable income, so most households receive less than the maximum.

Other VA home care programs:

• Homemaker/Home Health Aide services: direct in-home care arranged through the VA for enrolled veterans
• Veteran-Directed Care: gives eligible veterans a flexible monthly budget to hire and manage their own caregivers

How to apply: The Illinois Department of Veterans’ Affairs (IDVA) operates field offices across the state, and County Veterans Service Officers (VSOs) will help you prepare and file a claim at no cost. Working with a VSO is strongly recommended: VA paperwork is notoriously complex, and an experienced officer can dramatically speed up approval.

4. Long-Term Care Insurance

If your loved one purchased a long-term care (LTC) insurance policy years ago, now is the time to pull it out of the filing cabinet. Many policies cover in-home care, but families often assume the policy is facility-only and never file a claim.

Before assuming anything, verify these details in the policy documents:

• Does it cover in-home care? Older policies were sometimes written for nursing facility care only. Newer, “comprehensive” policies typically include home care, adult day services, and homemaker support.
• Benefit triggers. Most policies activate when the policyholder needs help with two or more activities of daily living (ADLs) or has a cognitive impairment like dementia.
• Elimination period. The number of days (commonly 30–90) you must pay out of pocket before benefits begin.
• Daily or monthly benefit maximum, and whether inflation protection has kept it in line with today’s care costs.

To file a claim, contact the insurer, request the claims packet, and gather a physician’s statement documenting the care need plus a plan of care from your home care agency. A reputable agency can supply the documentation insurers require. If the policy language is confusing, an elder law attorney or geriatric care manager can review it with you.

5. Private Pay: What Home Care Costs in Illinois

Many families pay for some or all of their home care out of pocket, especially while a Medicaid or VA application is pending. Nationally, the CareScout Cost of Care Survey (formerly Genworth’s) put the 2025 median hourly rate for non-medical in-home caregivers at $35, up 3% from 2024. Illinois rates typically fall in the $28–$38 per hour range depending on region and level of care. At 40 hours a week, that works out to roughly $4,800–$6,600 per month.

The costs vary across the state:

• Chicago metro and the suburbs (including the Palos area and southwest Cook County) tend to run at or slightly above the state median
• Downstate Illinois rates are often somewhat lower

Several factors affect what you’ll pay:

• Hours of care: a few hours of companion care per week costs far less than 24-hour or live-in care
• Level of care: hands-on personal care and specialized dementia care typically cost more than companionship and light housekeeping
• Agency vs. independent caregiver: hiring privately may look cheaper per hour, but an agency handles background checks, training, bonding, insurance, payroll taxes, and backup coverage when a caregiver calls in sick. For most families, that protection is worth the difference

Families also stretch private-pay dollars using home equity, pooled contributions from adult children, or bridge funding from savings while a benefit application processes. Even paying privately, home care usually costs meaningfully less than assisted living or a nursing home.

6. Free Illinois Resources That Help You Navigate All of This

You don’t have to figure this out alone. Illinois offers several free services built for this situation:

• Illinois Department on Aging (IDOA) Senior HelpLine: 1-800-252-8966. Your single best starting point. HelpLine staff can screen for Community Care Program eligibility, connect you to your local Case Coordination Unit, and point you toward every program in this guide.
• SHIP (Senior Health Insurance Program): free, unbiased, one-on-one counseling on Medicare and Medicaid coverage from trained counselors across Illinois. If you’re confused about what a plan does or doesn’t cover, this is the call to make.
• Long-Term Care Ombudsman Program: advocates who help older adults and families understand their rights and navigate long-term care options and disputes.
• Area Agencies on Aging: thirteen regional agencies coordinate CCP assessments, caregiver support, and local senior services statewide.

Home Care Services in the Palos Heights, IL Area

Assisting Hands Palos is a home care company providing care for adults and seniors across Palos Heights, Palos Hills, and the southwest suburbs. We don’t process Medicaid or VA paperwork for you, but we do accept Medicaid, private pay, and VA benefits as payment for our services, so whichever option in this guide applies to your family, we can likely work with it.

Our screened, trained, bonded, and insured caregivers provide everything from a few hours of companionship a week to 24-hour care, always with the goal of keeping your loved one safe, comfortable, and at home.

Call Assisting Hands Palos at (773) 207-3767 to learn more about our senior home care services in Palos Heights, IL or to check whether your Medicaid, VA, or private-pay coverage fits what we offer.

Frequently Asked Questions

Does Medicare pay for home care in Illinois?

No, not for ongoing personal or companion care. Medicare covers only short-term, skilled home health services (nursing visits and therapy) that are medically necessary and ordered by a doctor, usually after a hospital stay. Custodial care such as help with bathing, dressing, meals, and companionship is not covered by Medicare and must be funded through Medicaid programs, VA benefits, long-term care insurance, or private pay.

What is the Illinois Community Care Program?

The Community Care Program (CCP) is Illinois’ primary in-home care program for adults 60 and older, administered by the Illinois Department on Aging. It provides in-home homemaker services, adult day services, and emergency home response systems to seniors who are at risk of nursing home placement, allowing them to remain safely at home.

How do I apply for Medicaid home care in Illinois?

For seniors 60+, contact your local Case Coordination Unit through the Illinois Department on Aging or call the Senior HelpLine at 1-800-252-8966 to request a Community Care Program assessment. A care coordinator will complete an in-home Determination of Need evaluation and confirm financial eligibility. Adults under 60 with disabilities apply through the Home Services Program via the Illinois Department of Human Services.

Can veterans get free home care in Illinois?

Eligible veterans and surviving spouses can receive home care at low or no cost through VA programs including the Aid & Attendance pension benefit, VA Homemaker/Home Health Aide services, and Veteran-Directed Care. Current maximum Aid & Attendance amounts range from about $1,558 to $2,874+ per month depending on marital and dependent status. The Illinois Department of Veterans’ Affairs and County Veterans Service Officers help families apply for free.

How much does home care cost in Illinois?

Based on the 2025 CareScout Cost of Care Survey and regional market data, non-medical home care in Illinois typically runs $28–$38 per hour, or roughly $4,800–$6,600 per month for 40 hours of weekly care. Actual costs vary by region (Chicago metro rates run higher than downstate), hours needed, and level of care.