How to Pay for Memory Care: Common Options Explained
Memory care often costs more than standard assisted living, so many families ask how it gets paid for. There is rarely one source. Most families combine several. This guide lists the common options. Rules differ by program and by state, so confirm details with each source.
Personal savings and income
Many families start with income and savings, such as retirement accounts, pensions, Social Security and money from selling or renting out a home. Ask each community for a full written price list so you can see how long these sources would last.
Long-term care insurance
If your loved one has a long-term care insurance policy, it may help with memory care costs. Policies differ in what triggers benefits, how much they pay per day or month, and how long they pay. Read the policy and call the insurer before a move to ask how to start a claim.
Veterans benefits
Some veterans and surviving spouses may qualify for benefits that help with the cost of care. Eligibility depends on service history, income and care needs. A Veterans Service Officer can explain what may apply.
Medicaid
Medicaid is a joint federal and state program. In some states it may help with long-term care for people who meet income, asset and medical need requirements, but how it applies to memory care and which communities accept it varies widely. Ask your state Medicaid office or Area Agency on Aging, and ask each community whether it accepts Medicaid.
What Medicare generally does not cover
Original Medicare generally does not pay for long-term custodial care, which is the main service in most memory care. It may cover some medical services, such as doctor visits or a short stay in a skilled nursing facility after a qualifying hospital stay. Ask Medicare or your plan about specifics.
Other sources to look into
- Life insurance policies that may offer a way to access value for care
- Help from family members who agree to share costs
- Local and state programs for older adults or for people with dementia
- A home equity option, with advice from a trusted professional first
Questions to ask the community
- What is included in the monthly price, and what costs extra?
- How and when can the price increase?
- Do you accept long-term care insurance, veterans benefits or Medicaid?
- What happens if funds run low while a resident lives here?
Get independent advice
An elder law attorney or a financial professional can explain legal and tax effects before any large decision. HavenLine is a referral service. An advisor can help you find communities that fit your budget, but does not give legal or financial advice.
Questions
Does Medicare pay for memory care?
Medicare generally does not cover long-term custodial care. Ask Medicare or your plan about what it does cover.
Can you use more than one source to pay?
Yes. Many families combine savings, insurance and benefits. Ask each program how it works with the others.
General information only, not financial, legal or insurance advice. Rules, prices and benefits vary by state and by policy. A licensed professional can explain what applies to you.