What is the Average Monthly Cost for Memory Care?

When providing at-home care for a person with dementia or Alzheimer’s disease becomes challenging, memory care may be an option. People with memory problems receive intensive, specialized care in memory care, a type of residential long-term care.

The national average cost for memory care in the United States is $6,935 a month,2but costs can vary depending on the level of care required. Patients with all stages of Alzheimer’s disease or other types of dementia may receive 24-hour supervised care from memory care facilities.

For more details on memory care, continue reading.

What is Memory Care?

Memory care is intended to offer a secure, orderly environment with established routines to lessen stress for people with dementia or Alzheimer’s. Like the staff at an assisted living facility, employees serve meals and assist residents with personal care, but they are also specially trained to handle the particular problems that frequently arise as a result of dementia or Alzheimer’s. Residents receive more regular check-ins from them, as well as more structure and assistance as they get through the day.

“In regular assisted living, residents are expected to manage their own time; menus and mealtimes are posted, but staff is not checking in on them,” Carnarius says. “The staff in memory care makes sure residents arrive for meals, participate in activities, and move on to the next task.”

Memory care facilities have alarms on their doors, code-required elevators, and enclosed outdoor spaces because people with dementia tend to wander (6 in 10 do, according to the Alzheimer’s Association). Many provide residents with tracking bracelets so they can explore freely while still having their location tracked by staff.

At various stages of the disease, residents participate in activities aimed at enhancing cognitive function and retaining them.

How Much Does Memory Care Cost?

The first question many seniors and their caregivers ask when looking for memory care is, “What is the typical price for memory care?” On the other hand, a better place to start is with the median cost of memory care. This is so that the median, which is just the middle and not the average, is not impacted by areas of concentrated extremely high or low prices. The national median of all memory care facility costs in the According to APFM data, the United States average monthly wage is $5,430.

Of course, the median and average costs for memory care facilities can vary depending on location. A community in a major city will probably cost more than one in rural Georgia, one of the most reasonably priced states for memory care. Even if not in a city, a community will be more expensive than one where the opposite may be true if it is close to a desirable location, such as a beach, or in a region with a higher cost of living, such as Massachusetts.

Because of things like the cost of living in a specific area and dense populations of high- or low-cost communities, there are large differences in the average cost of memory care by state.

The median continues to be the most accurate measure of a region’s actual middle cost. However, there can be significant regional variations in the median price. The most and least expensive states in terms of median memory care costs are Georgia ($3,995 per year) and New Jersey ($7,710 per year), which is a difference of more than $3,700. (The District of Columbia, Vermont, and Hawaii are not included in this comparison due to the small size of their datasets.)

Learn how the median cost of healthcare in your state stacks up against the national average. The prices in the table come from the APFM’s 2022 Senior Living Price Index. Please see the notes section below for information on the states marked with an asterisk (*).

How to Pay for Memory Care Costs?

Memory care expenses will need to be covered by private funds unless care is given in a skilled nursing facility, which means that there are medically intensive care needs other than dementia.

Does Medicare Cover Memory Care Costs?

When provided in assisted living or a community specifically designed for memory care, Medicare does not cover the cost of care; however, Medicare may cover the cost of care when certain criteria are met for a predetermined period of time, typically up to 100 days for skilled nursing care under certain circumstances. For instance, Medicare will pay for certain medical supplies, some doctor’s fees, and any inpatient hospital care after certain requirements have been met. Medicare Part D provides coverage for many prescription drugs. Medicare will cover the majority, if not all, of the cost of care once a patient with dementia is admitted to hospice care.

Visit the Medicare website to discover more details about its coverage. Read more about caregiver resources, Medicare costs, and Medicare eligibility.

Dementia patients may qualify for Medicare Special Needs Plans (SNPs). SNPs are Medicare Advantage programs that focus on providing care for patients with dementia.

Does Medicaid Cover Memory Care Costs?

Those who qualify for Medicaid can receive medical care, including elderly adults, people with disabilities, and others.

At facilities that accept Medicaid, some long-term expenses are covered. Fewer memory care communities than other senior care providers that accept Medicaid set aside beds specifically for Medicaid patients than other locations that do. Since Medicaid is jointly funded by the federal government and each state, coverage varies from state to state.

The Program of All-Inclusive Care for the Elderly (PACE), a collaboration between Medicare and Medicaid, may cover some adult day care expenses, primarily for low-income seniors.

Although Medicaid requires a “spend down” before qualifying, a spousal protection rule enables healthy spouses some asset protection. State to state differences in protection exist.

Tips on Memory Care Costs

• Make sure to utilize any applicable veteran benefits that are offered to you. The Community Residential Care Program or the Aid and Attendance program of the U.S. Department of Veterans Affairs may be of interest. The benefits may also be available to surviving spouses. Give Veterans Affairs a call at (800) 698-2411 for free advice.
• The majority of expenses are covered by basic medical care. Additional services might incur additional fees. You can find the best care options in your area by consulting a geriatric care manager, who is a great resource. To locate a geriatric care manager, use the Eldercare Locator. Fortunately, the ideal location for you or a loved one needn’t be the most expensive.
• To help pay for the senior’s care, think about renting out or selling their home. Although they might be an option, reverse mortgages might not be the best choice for a surviving spouse who might require care in the future. Before finalizing any plans you have regarding the liquidation of a property, including a reverse mortgage, speak with an elder law attorney or a financial planner with experience in elder care.
• To help with the cost of the senior’s memory care, think about selling off some of their assets. Jewelry, artwork, antiques, collections, and other “stuff” can be used to buy peace of mind. Regarding the liquidation of these kinds of assets, a senior move manager can offer advice.
• To save money in the long run, consult an elder law attorney or a financial planner who is knowledgeable about elder care early on in the process.

Summary

According to the level of care offered, memory care costs vary from state to state. If you believe your loved one needs memory care, it is advised that you make as much preparation as you can. Although it’s complicated, there are ways to preserve some assets and be eligible for Medicaid. I suggest speaking with an older lawyer.

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