How much does Medicare pay for memory care facilities?

The amount Medicare pays for memory care facilities is limited, as the program doesn’t typically pay for long-term care. Any services covered by Medicare must be medically necessary. This means that many of the supports required by memory care residents, such as help eating and bathing, aren’t funded by the insurance program. However, some services are covered, and this can help seniors save money.

Medicare covers any medical services that are associated with Alzheimer’s disease or dementia. In the early stages of the condition, Medicare covers the cognitive testing that helps confirm a diagnosis. Medicare also covers care planning, which can help older adults make early decisions about how to manage their future as the disease progresses. People with prescription drugs have coverage for the cost of their medications. However, there are copays involved. It’s important to note that some newer medications may not be covered by insurance.

Although Medicare doesn’t typically cover long-term care, it does pay for up to 100 days of nursing home care for those who have had a qualifying stay in a hospital. This can include memory care provided in a nursing home. Although the length of the stay is relatively short, it can give seniors and their families time to organize alternative sources of funding. Medicare also pays for medically necessary home health care and hospice care, which is separate from memory care provided in a specialized unit.

There are other ways to pay for memory care, including Medicaid, veterans’ benefits, long-term care insurance and home equity. The Medicaid program in many states has waivers that pay for assisted living care, which may include memory care depending on the program. Seniors who served in the military may be eligible for Aid and Attendance benefits, which help pay for assistance in a residential setting. Surviving spouses of veterans may also be eligible for some benefits.

Long-term care insurance will often cover part of the cost of care, although it must be purchased well before a diagnosis. Life insurance policies are often a better source of funds. Many policies have “living” benefits that allow policyholders to access some money from the policy. Savings and equity in an existing home may also be used to fund memory care.