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How to Finance Memory Care
Date Updated: January 3, 2025
Written by:
Sarah has produced thousands of articles in diverse niches over her decade-long career as a full-time freelance writer. This includes substantial content in the fields of senior care and health care. She has experience writing about wide-ranging topics, such as types of care, care costs, funding options, state Medicaid programs and senior resources.
Reviewed by:
Kristi Bickmann, a licensed Long-Term Care Specialist, represents top-rated "Traditional" & "Hybrid" LTC companies. Serving associations such as the American Nurses Association, she's a licensed insurance agent in 27 states. Specializing in insurance products for seniors, Kristi helps hundreds of families every year protect assets, retirement, and loved ones. She understands aging concerns firsthand, having assisted her own parents. Kristi ensures accuracy on topics about senior long-term care and its consequences.
Finance memory care through private income and savings, insurance claims or government assistance programs. Seniors may also obtain various loans to cover their care costs. Co-payments may apply for those using public benefits or insurance.
Cost of Memory Care
Memory care costs vary significantly, depending on an individual’s needs and geographic location. Facility amenities and services also affect fees. Because of the specialized nature of the care and programming, enhanced security measures and round-the-clock supervision, memory care typically costs around 20-30% more than assisted living.
According to Genworth’s Cost of Care Survey, the U.S. median monthly cost of assisted living stands at $5,350 in 2024. Individuals can expect to pay a median of $6,688 for monthly memory care. Additionally, some seniors receive dementia support in nursing homes, which have median costs of $8,669 and $9,733 for semi-private and private rooms, respectively.
Private Payment of Memory Care
Most assisted living residents use private means to pay for their care, according to the National Center for Assisted Living. This extends to those living in dedicated memory care neighborhoods. Payment methods include:
- Income, such as pensions and Social Security retirement benefits
- Dividends from stocks and interest from bonds
- Savings
- Selling assets, such as homes, vehicles and jewelry
- Financial support from family
Policyholders should contact insurers to learn whether their plans pay for memory care. Many life insurance policies allow for advance payments. Those who plan ahead and purchase long-term care insurance can claim memory care costs, subject to limitations. Some seniors and their families consider loans to pay for essential care. Additionally, senior homeowners may release equity in their properties using reverse mortgages.
Financial Assistance Programs for Memory Care
Most state Medicaid programs don’t directly cover memory care in residential communities, although many provide funding through Home and Community-Based Services Waiver programs or Demonstration Waivers. Seniors must meet functional and financial eligibility conditions and live in Medicaid-certified facilities. Payment doesn’t cover bed or board costs. However, state Medicaid may cover full nursing home costs for qualifying individuals with dementia.
Veterans may qualify for VA benefits to cover memory care costs. Often, payments cover partial costs, leaving individuals with a shortfall to pay out of pocket. For example, the Aid and Attendance allowance provides an additional payment on top of VA pensions for those who need assistance with daily activities. Medicare doesn’t cover residential memory care costs. However, it may pay for short-term nursing home stays. Moreover, Medicare coverage of medical fees reduces individuals’ out-of-pocket costs, allowing them to spend their private resources elsewhere, such as paying for memory care.