How Families Can Pay for Memory Care
Let’s take a look at the multiple financial options seniors have to cover the costs of residing in a Memory Care community.
How Do People Afford Memory Care?
For many seniors, when cognitive impairment due to Alzheimer’s disease, or other forms of dementia progresses enough that they can no longer safely live at home, and family members are unable to provide adequate support, moving to a Memory Care community may be the best option.
Naturally, funding Memory Care services can be worrisome, and stressful for both seniors and their family members. Let’s take a look at the multiple financial options seniors have to cover the costs of residing in a Memory Care community.
What is Memory Care?
A Memory Care community provides specialized care for people living with Alzheimer’s disease, or other forms of dementia. Memory Care residents live on-site, and are provided 24-hour-a-day supervision and caregiving.
Memory Care community amenities include medical care, housekeeping, laundry, and meal services, as well as access to many activities and events specially designed for people living with various levels of cognitive impairment.
Memory Care Costs at a Glance
According to 2023 NIC statistics, cited by AARP, the average monthly cost of a Memory Care community is $8,399 in the U.S.
This figure is higher than the average cost of $6,694 per month for Assisted Living services. In contrast, in-home care services average nationally about $4,500 per month.
Payment Options for Memory Care
There are various ways seniors and their families can pay for Memory Care services.
Personal Savings & Family Contributions
Some seniors and their families are in a position to use their personal funds to pay for Memory Care services. Whether this money comes from savings, retirement plans, investments, shared family contributions, or any other type of liquid cash account, nearly all Memory Care communities will accept residents on a direct pay basis.
Some seniors no longer have a mortgage on their homes, or are in a position where a good amount of equity in the property has accumulated over time. For families in this situation, several options can be considered as a way to pay for Memory Care services.
- Arrange for a reverse mortgage on the home.
- Sell the family home.
- Utilize equity in the property by setting up a line of credit, or Home Equity Loan.
- Rent the home for income generation after the senior moves to a Memory Care community.
Does Medicare Pay for Memory Care Services?
The answer to this question is not a simple yes or no, and can be complicated. There are certain elements of Memory Care Services that Medicare does pay for, including:
Medical Services
Doctor visits, diagnostic testing, and care planning services related to the treatment of dementia.
Equipment
Some durable medical equipment related to dementia care is covered.
Prescriptions
Certain medications related to a dementia diagnosis are covered.
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What Medicare Does Not Cover
Room & Board
The cost of living in a Memory Care community is not covered by Medicare.
Long Term Personal Care
Medicare does not fund expenses incurred for assistance with activities of daily living (ADLs), housekeeping, or meals.
Veterans Benefits
Funds from a military pension can help fund Memory Care services. In addition, the Veteran Administration’s (VA) Aid & Attendance benefit can also assist in covering expenses. Some qualifications must be met, however, to participate in this program.
Long Term Care & Life Insurance
Long Term Care Insurance is specifically designed to pay for Assisted Living, or Memory Care services. Policyholders have various coverage options to choose from, including monthly dollar benefit limits, as well as policy period duration (specific number of years or lifetime).
Life insurance policies that have a loan provision, or a cash account attached to them can be used to fund Memory Care services.
Another option concerning life insurance is the Living Benefit Rider, which allows an insured to receive a cash advance, usually up to half the worth of the policy’s death benefit.
It should be noted however that loans, cash withdrawals, or advances from life insurance policies can lower and even greatly diminish a policy’s payout when an insured person passes away.
Planning for Memory Care Expenses
Seniors who are anticipating a stay in a Memory Care community, or their families should do all they can to plan and research the funding options available to them, including:
- Researching Federal & State Assistance Programs
- Consulting a Financial Planner or Senior Living Advisor
- Determining Qualifications for Any Veterans Programs
Frontier Senior Living is Here to Help
Navigating life with a loved one who is experiencing cognitive decline due to Alzheimer’s disease or other forms of dementia can be extremely challenging.
In addition, finding the funds to pay for Memory Care services can add to what is already a complicated situation.
The compassionate staff at Frontier Senior Living has helped many families find the perfect Memory Care community for their loved ones. We also have a great deal of experience assisting families with navigating the financial portion of the process.
Please visit our Financial Options for Senior Living page for helpful information, and access to trusted resources such as ElderLife Financial and AidandAttendance.com.
If you would like to learn more about our Memory Care services, we cordially invite you to visit one of our beautiful communities, take a tour, and speak with our friendly staff.
Find a community near you
that perfectly fits your needs.
Nearby Communities
Keepsake Village of Columbus Memory Care
2564 Fox Pointe Drive Columbus, Indiana 47203 (812) 900-4936 Levels of Care:Assisted Living, Memory Care
The Landing on Dundee Senior Living
156 West Dundee Road Wheeling, Illinois 60090 (224) 313-4547 Levels of Care:Assisted Living, Memory Care
The Auberge at Naperville
1936 Brookdale Road Naperville, Illinois 60563 (331) 305-6175 Levels of Care:Memory Care
