How Do You Pay for Memory Care?

You or your loved one will likely have to use a combination of personal funds and government-funded financial assistance to pay for memory care. Private or personal funds may consist of savings, retirement funds, private pensions and family support. However, you may qualify for some government-funded assistance such as Medicaid, Medicare or VA benefits.

The cost of memory care is generally about 20-30% higher than assisted living. As a result, it’s crucial to plan for long-term care finances well ahead of time. Seniors should consider working out financial care plans and seeking legal advice if needed. Additionally, purchasing long-term care insurance might be beneficial to help cover some costs of memory care.

Having savings put aside is a good payment option when planning for long-term care. One way to achieve this lump sum is to sell current assets that your loved one owns. If they still live in their own house, selling a home can fund care for many years. Additional items to sell include jewelry, cars and personal possessions. Reverse mortgages or renting a home can also be a source of income to supplement long-term care.

You may cash in or sell life insurance policies to provide funds, but that may mean not receiving any benefits at the time of death. This can be a financially poor decision if your loved one has had the policy for a long time. Seniors with private pension plans or retirement funds may use this income to pay for memory care.

Your loved one may qualify for Medicare or Medicaid, which may cover some costs associated with memory care. Medicare may cover the costs of medication and cognitive assessments. It also covers up to 100 days in a nursing home, but it will not cover other long-term care. Medicaid is available to low-income seniors who meet certain financial criteria. It can be used to cover the costs of medical assessments, nursing care and medication management.

If your loved one is a veteran, you may want to look at VA benefits. The VA covers the majority of medical costs associated with dementia and Alzheimer’s. The amount of coverage provided increases if dementia is a result of trauma or injury sustained while serving. In addition, it may cover some costs of long-term nursing home care. The benefits available depend on several factors, and it is best to contact your local VA office to discuss available options.