Memory Care Costs

Median Memory Care Cost

Memory care costs run higher than many other types of senior care, such as assisted living and adult day care, because of the specialized nature of memory care. The costs of memory care can differ significantly across states. Individuals in the mild to moderate stages of dementia can live within the general population of an assisted living community until the need for supervision becomes too great. However, as the disease progresses to its mid or late stages, they may need to move to a nursing home, a memory care community, or a skilled nursing care facility. Memory care communities come in many forms: a secured section within an assisted living community or an entirely independent facility focusing solely on memory care. These communities prioritize the safety and well-being of residents, which is evident in their infrastructure and services.

Key features of memory care facilities include:

• Enhanced supervision: Memory care units are designed to offer continuous supervision, often 24/7, ensuring residents are safe and well-attended.
• Robust security measures: These units are fortified with advanced security features. These include extra cameras in communal areas, secure entry and exit points, and safely enclosed outdoor spaces to deter wandering — a common concern for individuals with dementia. Cameras and security can also offer a family peace of mind, as they know their loved ones are being treated well and with respect.
• Specialized staffing: The staff-to-resident ratio in memory care units is typically higher than in standard care facilities. Moreover, the staff undergoes specialized training to adeptly handle the unique challenges of residents with memory issues, such as impulsivity and diminished safety awareness.
• Structured environment: Routine is paramount in memory care facilities. Predictable schedules help residents feel more at ease and reduce confusion.
• Facility features: Unlike standard assisted living rooms, rooms in memory care units typically exclude kitchens, prioritizing the safety of residents. Standard accessibility measures, like wheelchair accessibility, are still in place.
• Tailored activities: Activities are curated specifically for individuals with memory impairments, ensuring they are engaged and stimulated in a manner benefiting their condition.

When evaluating memory care costs, it's crucial to understand the comprehensive and specialized care these costs include. This specialized care ensures that individuals with dementia receive the best possible care tailored to their unique needs.

Memory Care Costs by State

Memory care costs vary widely from state to state. Check the following chart to determine your state’s estimated median cost of memory care.1

Daily Memory Care Costs

Memory care costs can vary significantly by state and chosen facility. In 2024, the daily memory care costs by state ranged from $83 to $403, while the national median was around $181 per day.

Monthly Memory Care Costs

When examining memory care costs every month, the figures can vary widely depending on the state. For instance, in Georgia, the median monthly cost is at the lower end of the spectrum at $2,500, while in D.C., it reaches a staggering $12,090. The median monthly memory care cost hovers around $5,000 nationwide. Memory care provided to those living among the general population of an assisted living community typically costs less each month than care at a facility focused solely on memory loss.

Annual Memory Care Costs

Yearly memory care costs range from $30,000 in Georgia to $145,080 in Washington, D.C., while the national median cost is around $65,000 per year. Families need to be prepared for these costs, especially because they will likely increase year after year.

Interested in a more detailed breakdown of memory care costs? The Genworth Cost of Care Survey has been helping families map out long-term care costs since 2004. This invaluable tool aids families in anticipating and planning for the financial demands of long-term care.

They have created a cost of care calculator that allows you to select a state and see the cost of various types of care. The calculator lets you see daily, monthly, and yearly costs by state, plus projections of future costs through the year 2071. There is even a tool to help factor in inflation!

How to Pay for Memory Care Costs

Memory care costs typically need to be covered using private funds unless care is provided in a skilled nursing community. In other words, there are medically intensive care needs other than dementia. Below, we’ll look at paying for memory care costs.

Does Medicare Cover Memory Care Costs?

Medicare, unfortunately, doesn’t cover memory care costs when care is provided at an assisted living facility or a dedicated memory care community. There are exceptions, however. Medicare might cover care costs under specific conditions, often limited to 100 days for skilled nursing care. For instance, inpatient hospital care that meets certain criteria, select medical items, and some doctor consultations fall under Medicare's coverage. Additionally, many prescription drugs are covered by Medicare Part D. When a dementia patient enters hospice care, Medicare often covers most, if not all, care costs.

To learn about more specifics concerning Medicare coverage, see Medicare's website. Also, read more about Medicare eligibility, Medicare costs, and caregiver resources.

Medicare special-needs plans (SNPs) are available for persons with dementia. SNPs are Medicare Advantage plans specializing in care for beneficiaries with dementia.

Does Medicaid Cover Memory Care Costs?

Medicaid offers health care coverage to qualifying older adults, those with disabilities, and other groups. Some long-term care costs are covered in facilities that accept Medicaid. However, it's essential to note that facilities that offer Medicaid beds often have a limited number of them, and memory care communities accept Medicaid less frequently than other senior care facilities. As Medicaid funding is a collaboration between individual states and the federal government, the coverage details can vary by state.

For low-income seniors, the Program of All-Inclusive Care for the Elderly (PACE) might cover some adult day care costs. This program is a joint partnership between Medicare and Medicaid.

Before qualifying for Medicaid, there's a “spend down” requirement. However, for asset protection, a spousal protection rule is in place, though the specifics vary by state.

Are Memory Care Costs Tax Deductible?

Memory care costs may qualify as deductible medical expenses, provided they meet IRS criteria. In certain scenarios, the entire cost might be tax-deductible with a written assessment signed by a doctor stating the level of care required.

For clarity on tax implications related to memory care costs, consulting someone well-versed in local tax laws and elder care is crucial.

Is Memory Care Worth the Cost?

Below, Dr. Altman discusses her experience with memory care and why it is worth the cost for many families.

“I remember working with ‘John,’ who was struggling with moderate-plus stage dementia. His wife and children were doing everything they could, but managing his needs at home was getting harder. He was wandering and trying to exit their home and falling a lot, which led to safety concerns and increased agitation.

After many discussions, they decided to move ‘John’ to a memory care facility. The cost was a big concern — over $6,500 a month where they lived — but they ultimately felt it was the right move. The facility provided constant supervision, engaging activities tailored for dementia patients, a structured routine and a secure environment to prevent wandering.

A few months in, ‘John’ seemed more at ease. He was less anxious and agitated and more engaged with his surroundings. Although still worried about the costs, his family found comfort in knowing he was in good hands. They enjoyed their visits more, focusing on spending quality time with him rather than being worn-out caregivers.

I worked for many years in nursing homes and memory care units, but frequent stories like these reinforce for me how beneficial memory care facilities can be. They are a good option for families facing the challenges of dementia, offering specialized care and much-needed support.”

More Tips Concerning Memory Care Costs

Navigating memory care costs can be challenging. Here are some strategies and resources to consider:

1. Veterans' Benefits for Memory Care Costs

If you or your loved one served in the military, don't overlook the potential benefits available through the U.S. Department of Veterans Affairs. Programs like the Community Residential Care program and the Aid and Attendance program can offer financial assistance. Surviving spouses might also be eligible for certain benefits. Call Veterans Affairs at (800) 698-2411 for guidance and more information.

2. Understand What’s Included in Memory Care Costs

Most costs are included with basic care, but additional services might incur extra charges. Consider consulting a geriatric care manager to ensure you're making the most informed decision. They can guide you to the most suitable care options in your area. You can also use the Eldercare Locator to find a geriatric care manager. Fortunately, the best place for you or your loved one doesn't have to be the most expensive.

3. Property Liquidation to Fund Memory Care Costs

Some families finance memory care costs by selling or renting out the senior's property. While reverse mortgages might seem like a viable option, they might not be the best choice for a surviving spouse who may need care. Consult an elder-law attorney or elder care-savvy financial planner before finalizing any plans you have concerning the liquidation of a property, including a reverse mortgage.

4. Asset Liquidation for Memory Care Costs

Selling some of the senior's valuable assets is another avenue to explore. Items like jewelry, artwork, antiques, and other collectibles can be sold to help cover memory care expenses. A senior move manager can offer guidance on the best way to liquidate these assets, ensuring you get the best value.

5. Early Consultation with Experts

Engaging with an elder law attorney or a financial planner specializing in senior care early in the process can be beneficial. Their expertise can help you navigate memory care costs more efficiently, potentially saving you money in the long run.