Home care crisis: How rising costs are breaking the middle class
By Ken Alltucker
Published on March 12, 2026.
AARP has reported that home care and assisted living costs for older adults and people with disabilities have surged over the past five years, straining affordability for middle-class families. The cost of these services increased nearly 50% from 2019 through 2024, far outpacing median income growth of 22% for senior households. Adult day service costs increased 33%, and nursing home care costs increased up to 25%. The report also highlighted a financial crisis for millions of families as the cost of services exceed their means to afford them. The surge in costs followed a decade of more modest caregiving expense increases. While Medicare does not cover these costs, Medicaid does pay for nursing homes care for low-income adults, costs can rise quickly for those who don't qualify for Medicaid. The report suggests that unpaid caregivers contribute about $600 billion in care in 2021.
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