"Home care" and "home health" sound like the same thing, but in New Jersey they're two different services with two different payers, and mixing them up can cost you. The short version: home care is non-medical help, home health is skilled medical care.
This guide explains the difference plainly, shows what Medicare does and doesn't pay for, gives the New Jersey cost, and explains how Medicaid can fund ongoing care at home.
In This Guide
- The core difference
- Home care: what it is and who pays
- Home health: what it is and who pays
- Which one do you need?
- Paying for in-home care in New Jersey
The Core Difference
The whole thing comes down to one word: medical. Home health is skilled medical care, a nurse changing a wound dressing, a physical therapist rebuilding strength after a hospital stay, ordered by a doctor and delivered by a licensed agency. Home care is non-medical help with everyday life, bathing, dressing, meals, reminders, companionship, a ride to an appointment. The same person might need both, but they're billed and paid for differently, and that's where families get tripped up.
| Home care (non-medical) | Home health (skilled) | |
|---|---|---|
| What it is | Help with daily activities, companionship, housekeeping | Skilled nursing, physical/occupational/speech therapy |
| Who provides it | Home health aides, personal-care assistants | Nurses and therapists from a certified agency |
| Who orders it | The family chooses it | A physician orders it |
| Who pays | Private pay or Medicaid; NOT Medicare | Medicare (short-term, if homebound), or Medicaid |
| How long | Ongoing, as long as needed | Short-term and intermittent |
Home Care: What It Is and Who Pays
Home care keeps someone safe and comfortable at home without medical treatment: an aide who helps your mother bathe and dress, makes lunch, does light housekeeping, and keeps her company. It's the kind of help most older adults need first and longest. On payment, the key fact is that Medicare does not cover non-medical home care. Families pay privately (in New Jersey, an aide averages about $38/hour in 2026), use long-term-care insurance, or, if eligible, have it funded by New Jersey Medicaid through its MLTSS program.
Home Health: What It Is and Who Pays
Home health is skilled, medically necessary care a doctor orders, typically after a hospital stay, a fall, surgery, or a change in a chronic condition. It's delivered by a Medicare-certified home health agency and is time-limited and intermittent, not around-the-clock. Medicare Part A and Part B cover home health at no separate cost when you're homebound and need skilled nursing or therapy. The key limits: it's for skilled needs (not help with daily activities alone), and it's short-term, so it's not a solution for ongoing custodial care.
Which One Do You Need?
Ask what the person actually needs. If it's help with the rhythms of daily life, bathing, meals, supervision, company, that's home care, and you'll likely pay privately or through Medicaid. If a doctor has ordered skilled care to recover from or manage a medical event, that's home health, and Medicare may cover it for a while. Many families use home health briefly after a hospitalization and then transition to ongoing home care, and that handoff (from Medicare-paid skilled care to private-pay or Medicaid home care) is exactly the moment to plan for, because the bill shifts to you.
Paying for In-Home Care in New Jersey
For ongoing home care, the main payers in New Jersey are private funds and Medicaid. NJ Medicaid's MLTSS program can fund in-home personal care for people who meet its clinical and financial eligibility, and a notable feature is that home-based MLTSS members keep all of their income (there's no patient liability when you live at home). Veterans may use VA benefits, and some families have long-term-care insurance. For the full financial picture, see our guide to how to pay for senior care in New Jersey.
Frequently Asked Questions
Home care is non-medical help with daily activities (bathing, meals, companionship, housekeeping). Home health is skilled medical care (nursing, therapy) ordered by a doctor. The same person may need both, but they're paid for differently.
Medicare does not pay for non-medical home care. It covers home health, skilled, short-term, intermittent care when you're homebound and a doctor orders it. Ongoing non-medical help is paid privately, through Medicaid, or with long-term-care insurance.
A non-medical home health aide averages about $38 an hour in New Jersey in 2026. Costs add up quickly for many hours, which is why families turn to Medicaid or insurance for ongoing needs.
Yes. NJ Medicaid's MLTSS program can fund in-home personal care for eligible members, and home-based MLTSS members keep all their income (no patient liability). You must meet MLTSS clinical and financial eligibility.
Yes, and many do, especially after a hospital stay: Medicare-covered home health for skilled recovery, plus home care for daily help. Plan for the moment the home health benefit ends and ongoing home care becomes your responsibility.
Learn More
- Assisted Living in New Jersey
- Nursing Homes in New Jersey
- New Jersey Medicaid MLTSS (Managed Long-Term Care)
- How to Pay for Senior Care in New Jersey
Find personalized help deciding between home care and home health in New Jersey at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.